No-one Likes To Raise Prices But…

No-one Likes To Raise Prices But…

Freight Costs Are Through The Roof

The prices of getting freight in from the Far East has been volatile this year. This is due to a worldwide shortage of containers, which may be I dare say, intentional on the behalf of some shippers keen to recover as much revenue as possible to make up for the downturn due to the pandemic.

As a result it’s a sellers market. We either have to pay the higher prices or our slots will be taken by others and our goods left high and dry. However, the real problem is the staggeringly high increases.

Previously, landing a 20ft container would cost in the region of £2,000, and a 40ft around £3,500. A 40ft container we had arrive in June also came with a bill for £8000. I know you can count but that’s over twice the typical rate. At first we thought this would be passing and a blip so we absorbed these extra costs. However things are only getting worse.

An LCL (Less Than Container Load – eg we share a container with other merchants) has come with a bill of £6,500, and a 20ft container with a staggering £16,500 bill. We cannot absorb these price increases and unfortunately have no option but to increase our prices with immediate affect.

Quotes we have issued within the validity period will be honoured at the price quoted, as well as orders in the pipeline that have already shipped but we will need to amend prices on all products that are currently in manufacture.

Thank you for your understanding.

Further Reading: Why even giant ships can’t solve the shipping crisis – BBC News

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