Global Shipping Costs & Time to consider Re-Shoring…
The latest news from a major on-line Lighting company, HOUSEOF.COM, commented that shipping costs had increased six-fold from typical container costing $1,600 going up to $7,000, some quoting over $10,000….even major retailer IKEA has been affected.
With a server shortage of containers in the right locations combined with a huge increase in shipping charges, companies manufacturing and importing are really feeling the financial strain to justify passing these charges to the end customers, when the increase has no relation to any improved quality or value for money that the customer can relate too.
If you were bringing over a thousand units in a 40ft container, the typical amortised cost would roughly be £1.20, with the pandemic and everything that come with it, that amortised cost has now risen to nearly £13 per unit before any other import duties are added.
With potentially no let up this year around shipping charges coupled with component lead-time issues…surely UK manufacturing has never been more attractive.