Soaring shipping costs are bringing about a rise in the cost of consumer goods entering Britain, as supply chain and logistical problems from China continue to affect the market.
Attempts to plan for full-scale Brexit are also affecting supply, with stockpiling leading to severe delays at British ports including Felixstowe (pictured).
The hold-up at ports has been caused by global supply chain issues affecting not just Britain but countries worldwide. One major homeware and furniture manufacturer we spoke to said they would probably have to put prices up by 15 per cent in 2021, envisaging that this the cost would be shared equally between themselves, the retailer and the end consumer at five per cent each.
Along with rising shipping rates, congestion charges at Felixstowe and Southampton are compounding the mounting sense of chaos. Representatives of the logistics industry have written to Transport Secretary, Grant Shapps, asking for help to clear the delay at ports.
Forty per cent of Britain’s container traffic runs through Felixstowe, which is having to cope with an spike in imports as a result of both Covid-related stockpiling and preparations for a possible no-deal Brexit. Southampton and London gateway could be the next ports to face disruption.
Commenting on press coverage of maritime supply chain disruption Tim Morris, CEO of the U.K. Major Ports Group, said: “The COVID-19 pandemic has caused unprecedented volatility in global supply chains. The impact is being felt across the world, including here in the U.K. The situation at the UK’s ports is improving following commitment of extra resources, working closely with customers and ports across the U.K. taking on more traffic. However, we are not complacent. Improvements at U.K. ports will take time to work through supply chains, they remain very busy and the underlying problem is global.”
The Group warned in an earlier commentary on the situation that “The Bank of England’s ‘Decision Maker Panel’ survey of businesses for October found that 45% of EU-trading business still had preparation to do or had done no preparation for EU border processes. We’re told that the Government’s current ‘Time is running out’ messaging is improving this situation. It needs to.
The speculation on will there be a UK-EU FTA or won’t there be dangerously misses the point. 95% of the Government’s new Border Operating Model will be the same with or without a deal. Simply put for businesses and individuals trading with Europe, if you haven’t done the pre-registrations and pre-notifications your stuff is not getting on a boat.”
