Retailers reportedly scramble for Xmas stock amid surge in shipping costs
Retailers usually start importing stock in late summer or early autumn in preparation for the Black Friday and Christmas shopping seasons in November
European retailers are reportedly scrambling to get their Christmas orders early amid higher shipping costs and trade route disruptions that are impacting holiday deliveries, experts have told the BBC.
In the midst of the Israel-Palestine war, many Western firms’ vessels have been attacked by the Houthi rebels backing Hamas over the last few months.
As a result, container prices have increased at an alarming rate. Freight market tracker company Xeneta told the BBC that the cost of shipping a 40ft container has increased by 140% to $4000 (£3,130) compared with 2023.
Additionally, a longer path around Africa is reportedly being used by ships travelling between Asia and Europe because of the attacks, with many of them departing early to allow for the additional time required for the diversion.
Retailers usually start importing stock in late summer or early autumn in preparation for the Black Friday and Christmas shopping seasons in November.
Nick Glynn, boss of the Buy It Direct group, told the BBC that because the company is planning ahead, he didn’t anticipate Black Friday and Christmas stock would be affected. He also mentioned that the current price for goods to be delivered immediately has increased significantly from $4,500 to $7,500 (£3,500 to £5,900).
He said: “It impacts cash and warehouse space as suddenly you have to store the goods for longer. You can’t risk ordering later.”
“This makes a massive impact on big bulky items, especially those that have low margins such as furniture, barbecues, and kitchen appliances. There was no way most online retailers could absorb those price increases on big-ticket items. So unfortunately for consumers, the next few months will see significant rises on these big-ticket items.”
