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. 

Example
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 ➡

HTA shows caution for garden retailers

Garden Centres cautious despite good start to year

The Horticultural Trades Association (HTA) releases its February monthly market update, which shows that despite the UK economy's recently announced recession, garden retail continues to show some green shoots to kick off the year. The resilience is a continuity of...

Mike Burks awarded GCA Honorary member

GCA inducts Mike Burks as honorary member

Mike Burks, managing director of The Gardens Group, which owns Castle Gardens in Sherborne, Brimsmore Gardens in Yeovil and Poundbury Gardens near Dorchester, has been awarded Honorary Membership of the Garden Centre Association (GCA). Presented by GCA...

Greenfingers

The GCA Conference digs deep for the Greenfingers Charity

The recent Garden Centre Association (GCA) conference was not only an informative and educational event, but it also featured a lot of fundraising for the garden retail sector’s adopted charities, including Greenfingers. In fact, delegates dug so deep into their...

Andy Hannan joins Dobbies as Commercial Director

Dobbies appoints Andy Hannan as Commercial Director

Dobbies, the UK’s leading garden centre retailer, has appointed Andy Hannan as Commercial Director. With extensive experience from across the retail sector, Andy will lead the delivery of Dobbies’ commercial strategy as it enters its new financial year. Andy has...

retail sales slow

Retail sales slow as high cost of living enters third year

UK Total retail sales increased by 1.2% year on year in January, against a growth of 4.2% in January 2023. This was above the 3-month average growth of 1.9% and below the 12-month average growth of 3.4%. Food sales increased 6.3% year on year over the three months...

Bells Horticultural acquires Peter Beales Roses

Bells Horticultural acquires Peter Beales Roses 

Bells Horticultural, a distinguished family-run enterprise with a rich heritage in horticulture, proudly announces the acquisition of the celebrated Peter Beales Roses business. This strategic move solidifies Bells Horticultural's commitment to preserving and...

Read GCR's latest edition!
Read GCR's latest Made in Britain Supplement!

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