Container Costs Risk Supply Chain Price Rises (Stephensons)
Container pricing from the Far East has risen from a historic average of circa $1,600 to as high as $15,000 over the past six months. Hopes that increases might abate after Chinese New Year are now fading fast as containers remain positioned in the wrong parts of the world. Henry Stephenson, managing director of family run catering equipment business Stephensons, said: “We had been gearing up for complications with importing due to the end of the transition period with the EU. However, this has been eclipsed by the implications these container rates are having on pricing and availability of goods from China.
We have seen increases of up to 25% on bulkier products – a lot of importers are taking the decision to hold off placing orders for raw materials and finished goods, leading to likely shortages in the market once demand from hospitality finally returns. Distributors will need all their purchasing skills over the coming months – goods will need to be secured from multiple sources and they will have to commit to large volumes of stock in order to minimise the impacts of stock outs and price hikes for their customers.” Stephensons is actively resourcing to European and UK manufacturing sites wherever realistic.
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