European retailers are rushing to place their Christmas orders early as soaring shipping costs and trade route disruption threaten holiday deliveries, experts say.
For the last few months, vessels belonging to Western firms have been attacked in the Red Sea by Houthi rebels driving shipping prices up. Container prices, which peaked in January and briefly declined, have rebounded sharply in recent weeks.
Businesses are having to plan and book well in advance to make sure their shipments arrive on time. This impacts cash and warehouse space as suddenly goods have to be stored for longer.
Disruptions caused by Yemen’s Houthi movement have limited the global supply of shipping space and containers. Global shipping routes have been disrupted by the attacks on vessels in the Red Sea.
Importers have learned many lessons from the pandemic including that the most straightforward way to protect supply chains is to ship as many goods as quickly as possible.
What is being seen is that some businesses are already shipping cargo for the Christmas period – in May. Typically, retailers start importing goods for the November Black Friday sales and Christmas shopping season between late summer and autumn.
The attacks on ships have forced owners of vessels travelling between Asia and Europe to take a longer route around Africa, and so ships are starting their journeys earlier to allow for the extra time needed for the diversion.