It is clear that the attacks on ships using the Red Sea on their way to/from the Suez Canal are already having an impact on world trade as some very large shipping companies are avoiding the region altogether and taking a much longer journey around the tip of Africa.
As the leading importer of teak garden furniture into the UK we have been informed that the cost of transporting goods by ship has already doubled and if normal shipping activity is not resumed soon, then these costs could treble by the start of February.
Acts of piracy in this part of the world has been a longstanding problem but with the outbreak of the Israeli-Palestinian war the situation has escalated dramatically. As a result, shipping lines have introduced ‘war’ surcharges. They are entitled to do this through their terms and conditions stated with their Bill of Lading. These surcharges when applied are passed on directly to us.
What does this mean for us and our customers?
We are fortunate that we are holding large stocks of product at this point, and we also have some containers already ‘on the water’ that sailed prior to these issues arising, so in the short term we are under no pressure to react.
Also, as we did at the end of the Covid period when the demand for shipping containers went crazy and shipping costs went ‘through the roof’ as the global economy came fully back to life, we will try to absorb these significantly higher transport costs for as long as we can.
However, if they continue to remain high or go even higher, then we may inevitably have to raise our prices at some point. We believe that this will be the situation for all importers and suppliers of teak garden furniture.
Our Advice – Buy Early
Given the way that this situation appears to be shaping up, we don’t see a quick return to shipping normality. Therefore, if you are considering buying teak garden furniture for the coming Spring and Summer, our honest advice would be to make that decision as soon as possible and take advantage of the current prices. In our opinion, unless the situation in the Middle East changes for the better, then as the season develops prices are only going to go one way at the moment.
To help customers who want to place an order now (January) but take delivery later in the year (March or April) you can pay a 10% deposit for your garden dining set now and pay the balance just before delivery. This option is available at checkout – but if you have any questions at all please just ask.
