Shipping costs rising3 Jun 2024 09:07
Having read that the Baltic Exchanges' main sea freight index, tracking rates for ships carrying dry bulk commodities, rose again on Friday marking a 7.7% rise in May, I also note this new article on the BBC:
Https://www.bbc.co.uk/news/articles/cqee78djzmro
"Shops rush for Christmas stock as shipping costs surge"
"Container prices, which peaked in January and briefly declined, have rebounded sharply in recent weeks"
"Mr Glynn explained that the spot rate - the current price for immediate delivery of goods - has dramatically increased in recent weeks from $4,500 to $7,500 (£3,500 to £5,900).
"This makes a massive impact on big bulky items, especially those that have low margins such as furniture, barbecues, and kitchen appliances," he said."
"Disruptions caused by Yemen's Houthi movement have limited the global supply of shipping space and containers."
"Shipping costs have soared as a result. The average cost of shipping a 40ft container now exceeds $4,000, a 140% increase from 2023, according to freight market tracker Xeneta.
Peter Sand, Xeneta's chief analyst, said that importers have learned many lessons from the pandemic including that "the most straightforward way to protect supply chains is to ship as many of your goods as you can as quickly as possible".
"That is what we are seeing with some businesses telling us they are already shipping cargo for the Christmas period - in May," he said."