Supply chain problems are forcing Costco to tighten their belt.

When the COVID-19 pandemic first struck the United States in earnest in March of 2020, concerns about long-term quarantine and disinfection prompted panic buying of certain home products in bulk. Items like toilet paper, hand sanitizer, and bottled water swiftly ran out at many supermarkets, to the point that some markets needed to post guards on product palettes to ensure customers only took one at a time. The supply chain has thankfully stabilized after the panic buying died off, but according to a recent announcement from Costco, we may be in for some similar troubles.

Costco announced today that they will begin limiting the purchase of toilet paper, paper towels, bottled water, cleaning supplies, and more. This time around, though, the problem isn’t the demand, but rather the supply. Manufacturers of these products around the world have been hit with delays, labor and material shortages, and general disruptions, all due to the proliferation of the delta variant of COVID-19.

“The factors pressuring supply chains and inflation include port delays, container shortages, Covid disruptions, shortages on various components, raw materials and ingredients, labor cost pressures and truck and driver shortages,” Costco CFO Richard Galanti told investors Thursday night. “Various major brands are requesting longer lead times, and in some cases, difficulty in finding drivers and trucks on short notice.”

Costco said it will limit consumers' purchase of items including toilet paper, paper towels, and bottled water due to supply chain issues and demand generated by the rise of the Delta variant.https://t.co/g6VI2x4GwO

— USA TODAY (@USATODAY) September 24, 2021

In an effort to keep the supply chain going, Costco has chartered several large freighter ships to transport products themselves. These ships will be making up to ten cross-pacific trips in a year. Unfortunately, chartering ships isn’t free, and the cost of the ships could be passed on to customers. The growing scarcity of raw materials isn’t helping matters; according to Galanti, “price increases of pulp and paper goods, some items [are] up 4% to 8%,” with prices on plastic and metal items around the same range.