Soaring costs of shipping, haulage and raw materials, coupled with container shortages and disruption at ports resulting in delays are causing horrendous headaches for greeting card publishers, calendar companies and giftwrappings businesses bringing their products into the UK.
Last January it cost $2,500 to ship a 40’ container from the Far East. Now that cost has soared to £14,000 – and the rates for July will see this price rising even higher.
And on top of that, there is a serious shortage of actual containers and even when the stock arrives in UK ports, there is a paucity of haulage drivers to take it to companies’ premises.
“It is absolute madness,” Daniel Prince, managing director of Danilo summed up. “I think it’s outrageous the shipping companies can get away with charging 600% to 800% more than they were 18 months ago. They are all making record profits at expense of their customers. The container shortage is also ridiculous – it’s almost like an over demand and shortage of supply has been created to justify these costs.”
The delays make this a bitter pill to swallow. As Daniel added: “I wouldn’t mind paying such ridiculous prices if you could get the goods quicker but even with these prices it’s taking much longer than pre-Covid.”
Up until now, Daniel assured that Danilo has been able to work round the two-three week delays. “We luckily also have excellent UK production capabilities, to help us as well,” said Daniel.
Alister Marchant, ceo of Carte Blanche Greetings, describes it as something of “a perfect storm of challenges” for any importer and exporter of goods. “While still working through the various challenges of leaving the EU we are faced with astronomical increases in freight with an ever-changing situation in China resulting in shortages and increased costs.”
Alistair explained that the company is currently exploring “all options in ensuring we maintain availability at a price that is sustainable. It is proving challenging but over the years there are always peaks and troughs and you have to believe in playing the long game. Although we all would like to think the issue is short term and potentially the freight situation will correct itself as the world emerges from the grip of Covid-19 we have taken on an additional person in our product development Team and their primary focus is to increase our European sourcing options.”
Adding to the costs and shortages on the shipping front, David Byk, ceo of Ling Design and GBCC also highlights massive increases in the costs of cardboard (which is also difficult to get hold of) that even when stock is landed in the UK, you then have a challenge on the haulier front.
“It is all incredibly challenging, expensive and frustrating. This year it is all about having to take it on the chin in the hope that things will ease, sooner rather than later,” he added.
Top: Shipping costs are continuing to soar.
