UK high street retail prices are under serious pressure as global shipping prices quadruple
Global shipping companies have reduced shipment quantities and quadrupled prices to UK importers forcing massive pressure on imports from overseas.
Rates for millions of UK companies have raised from an average $2000 to an incredible minimum $8000 per 40 foot container.
Retailers and wholesalers who rely on importation to feed their businesses are seriously concerned whilst retail analysts are saying how shop prices including all major supermarkets will raise considerably.
David Coor a retail analyst is advising consumers to ‘stock up’ now on non perishable products as high street prices are set to ‘rocket’ as previously purchased stocks run out.
He said: ” If the consumer is thinking of leaving a purchase to the new year, don’t, shipping rates are through the roof and high street retail prices will not be able to absorb the highly inflated rates from the shipping companies”
“Don’t expect January sale prices this year, all we are going to see is high rises due to these shipping costs that are expected to last until at least the end of Spring” he further added.
Today has already seen Honda suspend production due to lack of arriving parts.
With the majority of imports ranging from food products, electrical and furniture items as well as clothing coming via sea containers it looks a further bleak out look for the UK high street buyer with the high street already under serious pressure from the Coronavirus pandemic.
Cindy Dickens, a shipping agent who ships for all the major high street brands told Global247news: “It’s going to be a retail price blood bath, the shipping rates are crazy right now, people don’t realise how much product is shipped in to the UK and all those products will also have to quadruple in price to allow for the extra shipping costs”
” The other issues are though importers are holding back on stock shipments in the hope that pricing will drop, it’s not going to as shipping companies have reduced shipments to at least April at the earliest in 2021 – this will see stock shortages of products”
Oak furniture importer, Mark Lovelace has already advised all his customers he has cancelled all shipments, the UK based furniture importers said he isn’t prepared to pay the prices of the shipping companies and suspended all production and banned bulk purchases from his own customers, only accepting ‘customer orders’ in an attempt to distribute his products fairly.
Another wholesaler issued an email warning to their clients as it read:
New short-term price list is with effect from Nov 21st
You are all probably very much aware of port issues & the incredible container freight hikes –
We have temporarily asked the factories to halt production – so we do not know when items will arrive back in stock.
We are happy to take orders for items for unknown arrival times, but neither will we know the delivery date nor final price – if with today’s container prices – expect a surcharge of 20-25% – we are certainly not confident to buy at spot rates like so, when in a couple of months the rates could be much lower – where the price stabilises, nobody can predict!
For now – try to advertise in-stock items
Note the following –
We are only accepting customer orders – not bulk orders
NOTE A 5% SURCHARGE IS ALSO IN EFFECT FROM DEC 1ST
Regarding back orders you may have – yes we can keep & hope to honour the price, but it depends solely on the prevailing rate at that time – and you may have quite a delay – but this will be a country-wide issue “
British importers from all industries are under the same pressure and David Coor added: January sales you can forget next year, it’s not going to happen, stock is now liquid gold – retailers aren’t going to give it away, in essence January sales are cancelled”
Electrical Welsh importer Davey Jones warned, “there’s going to be no bargains this time round, it will be prices up and in my opinion many businesses who import are going to go to the wall through no fault of their own due to shipping charges, the public simply will not be able to afford the serious hikes in price, on a tv alone, its adding a minimum £200 per set.”
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