The rising cost of shipping to the UK
We have recently seen a rise in the cost of shipping goods around the world, as disruption in some key trade routes filters through to shipping firms. Attacks on vessels in the Red Sea by Houthi Rebels have had a knock on effect, forcing ships to take an alternative route around Africa, which means longer at sea. This has also resulted in a rise in container prices and a shortage of containers. According to the BBC:
“The average cost of shipping a 40ft container now exceeds $4,000, a 140% increase from 2023”
https://www.bbc.co.uk/news/articles/cqee78djzmro
This has resulted in retailers rushing to order goods in time for Christmas and Black Friday, leading to increased demand for space on ships around the world. There is also a rise in the time it takes for empty containers to return to Asia from their destinations, as there is a shortage of equipment from Asia to Europe.
Costs for importing from China to the UK and Europe
All these factors have meant shipping costs from China to Europe have risen dramatically, meaning your Shipping Agent must work with longer transit times, lack of space and lack of available equipment.
What can your freight forwarder do to help?
Your freight forwarder should discuss your options with you, as there are a number of ways we can minimise disruption to your business.
Shipping in larger quantities
If the rising costs are an issue, maybe consider shipping in larger quantities to minimize the cost per item. Generally speaking, the bigger your shipment, the cheaper the shipping costs per item it will be.
Waiting for rates shipping rates to come down
It is possible the shipping rates will fall in the near future. It could be worth holding off ordering items until the rates do come down and start to stabilise.
Storing your goods
It is worth checking to see if your supplier can store goods for you in the UK.
Longer transit times
Air freight is naturally the quickest way for freight to travel. It can be costly, but if shipping time is crucial to your business, this is an option worth considering. There is a also rail service from China to Europe, and whilst this is more expensive than FCL sea shipping it is still cheaper than air.
At T.Ward we are happy to discuss all options with our customer, making sure the disruption to their business is minimised as much as possible. Contact us to have a chat about how we can help.