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Shipping has faced a turbulent time since the start of the pandemic, having faced huge global pressures. From the start of the pandemic demand fell dramatically, which was soon followed by a period of increased activity with people ordering goods online whilst being at home. The conditions, which have been ongoing since March 2020, have led to havoc for UK businesses, now seeing costs soaring.
These now significant price increases have been caused by the culmination of numerous factors since the outbreak of Covid. From the outset of the pandemic, when demand fell, the container industry faced disruption. Containers weren’t where they needed to be, meaning not only were shipments facing delay but containers were then at a premium; therefore seeing pushed up prices as a result.
With the pandemic remaining as a backdrop, and demand not ceasing, congestion has become an issue at ports not only just in the UK but at ports across Asia. Demand for space remains high, but with container shortages still a problem, the congestion at ports in Asia has led to goods for shipping having to be prioritised, meaning that there may be a shortage of lower valued goods coming to Europe as a result. Shipping lines are incredibly busy and therefore the cost of shipping from Asia to Europe has increased dramatically. Read more here.
We have seen a significant impact on the cost prices of our imported stock but have managed to keep our supply chain running well and have good stock levels of core products.