LOFA reports increased freight rates and container crisis

by | Jun 17, 2021 | News | 0 comments

LOFA has reported another increase in freight rates being levied at the industry. The new FAK* rates from Asia to North Europe are now edging towards $20,000 per 40ft container, representing a 1566% increase in the space of 19 months.

These increased rates are set to have a major impact on importers, retailers and consumers. Retailers could face not being able to shift stock if the retail prices have to be increased due to the jump in these shipping costs. Importers will have to pay 16 times more for freight than last year.

Considering many of LOFA’s members have to bring in 50 plus containers in a season, the associations says this is a huge amount of extra funding they are having to generate. 

2021 – 50 containers @ $20,000 per 40ft Container           $1,000,000
2019 – 50 containers @ $1200 per 40ft Container              $     60,000
Extra funding                                                                       $   940,000

LOFA adds its members have tried to absorb these costs where they can, to assist their customers, but this will no longer be possible with such a massive increase. 

In light of these ongoing difficulties, LOFA has lobbied the Department of International Trade, the Home Office, local government. It has also reported this price fixing by the larger freight firms to the Competition and Markets Authority; this report is now with the CMA legal team which is deliberating on a decision.

more latest news ➡

New logo for the Bransford Webbs Plant Company

A fresh, new look for The Bransford Webbs Plant Company

The Bransford Webbs Plant Company is proud to unveil a new company logo, launching at The 2024 National Plant Show at Stoneleigh Park. An evolution of the original Bransford Webbs logo introduced almost twenty years ago; the heritage shades of purple and green have...

GCA CEO Peter Burks hosting a free sustainability webinar this month with the focus on water and ‘navigating the green minefield’

Free sustainability webinar for GCA members

Garden Centre Association (GCA) members will hear from a trio of sustainability experts during a free webinar this month (June 2024). The GCA is hosting the online event on June 26 from 3-4.30pm and it will cover water conservation and how to navigate environmental...


Nearly 40% of UK retailers fail to meet delivery times

A new study, carried out by post-purchase customer experience provider parcelLab and e-commerce customer care - and fulfilment specialist Salesupply, highlights significant gaps in delivery reliability, tracking transparency and customer service...

Blue Diamond posts 2023 figures

Blue Diamond posts 2023 accounts

The new largest garden centre group Blue Diamond has posted its 2023 accounts which shows a £24.2m profit – a 16% increase on 2022. Sales for 2023 were £310.6m versus £259.3m last year, a 20% increase on 2022, and a 9% like for like uptake. This marks an important...

Read GCR's latest edition!

Subscribe ToThe Wednesday Word

Subscribe To
The Wednesday Word


Get all the latest news, events & more straight to your inbox every Wednesday.

You have Successfully Subscribed!

Pin It on Pinterest

Share This