What’s this month’s Broken Link In The Supply Chain? May 2021 Monthly Playbook

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The ship that blocked the Suez Canal, the Ever Given, is being held by Egypt until a fine of nearly $1 billion is paid, and this spells trouble for the retail sector of the cannabinoid supply chain.

The cannabis industry is arguably the least environmentally-friendly industry, particularly when it comes to consumables. Everything purchased at a licensed dispensary, including vape pens and CCELL cartridges must come in plastic, child-proof containers. All of these packaging materials are sourced from China, and limited access to these supplies could springboard into a price jump for consumables. This is particularly true for cannabis companies that have already been struggling to make ends meet, as they’re now faced with an increase in their cost of production with no way to make up for their losses. Losing access to the exact SKU of containers previously ordered is also a potential roadblock cannabis companies may encounter.

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