The shipping price of goods may hit the pocket of buyers sooner than they think. All goods from a cup of coffee to the toys you want to get your kids will soon become very expensive. As of now to transport a steel container of cargo by sea costs around $10,522 from Shanghai to Rotterdam. According to Drewry Shipping, this new price is 547 percent higher than the season average. This new surge in freight cost will boost the price of almost everything from furniture, car parts, and toys to sugar, anchovies, and coffee, creating concern of over accelerated inflation.
Gary Grant, Founder and CEO of The Entertainer, has stated that in his 40 years of experience in this business, he has never witnessed such challenging conditions from the pricing point of view. He furthermore added that he has stopped importing giant teddy bears now because the prices will be double due to the change in the freight cost. This new price change will significantly impact retail prices. Many factors have contributed to the sudden change in price, like increased demand for containers, fewer ships, saturated ports, and reduced dock workers are adding burden to transportation. Covid outbreaks in Asian port hubs have also made shipping very difficult.