The British Home Enhancement Trade Association (BHETA) is spearheading a campaign to secure intervention from the Competition & Markets Authority (CMA) regarding the international shipping market, which has raised prices by an unsustainable 700% in the last year.
A BHETA member survey confirmed that suppliers who import either product, components or raw materials are currently facing exorbitant charges in relation to freight costs which are having a serious and detrimental impact on their businesses.
Many companies are also being charged additional costs such as increased demurrage and cancellation charges on top of the increased costs from importers and freight forwarders. This issue is compounded by lack of supply of containers and availability of freight space.
The cost of a 40ft container from the Far East has increased from around $2,250 (£1,640) to $18,900 (£13,800).
Will Jones, chief operating officer of BHETA, said: “Suppliers will only be able to absorb a certain percentage of these increased costs, resulting in higher costs for the end consumer.
“Many smaller suppliers will not be as successful in passing increases onto the trade and this will result in the supplier base reducing or consolidating, which will impact on competition, employment and ultimately the whole economy.”
BHETA is urging members affected by this to write to their local MP; and join the BHETA campaign.
