We would like to provide an update on the current freight / logistics situation around the world.
As the global economy recovers from the impact of Covid19, we are seeing a continued and unprecedented change in supply chain costs & timings which are forecast to continue for at least a further 6 months. Sea freight has been extremely stretched since the end of 2020 and carrier reliability is at an all-time low. Equipment and container space are short as never before. Market demand is at an all time high despite rising sea and air freight rates costs.
For Europe & North America, rates are projected to reach US$20,000 per 40ft container very soon which is for Europe is a near 11 fold increase since one year ago!
Impact on Lead Times
This situation is impacting significantly Capacity and Production Timings from China as retailers work to secure capacity and deliveries before peak sales months…Halloween, Xmas and Near Year.
Production timings are significantly longer across the majority of categories, which needs to be planned in by markets looking to activate promotional merchandise.
Impact on Quotation
We will mark our each quotation that we offer valid period. All potential costs will be listed on our quotation like set up charges, handling, mold fees, sampling, insert, hang tag, instruction manual, COO labelling/sticker, non-woven textile label, wash care label, freight cost (if appliable), imprint, decorations, certain packaging, qc inspection, safety testing report ……….. etc.
This is very important to indicate all these possible hidden costs on our quotes to avoid any disputes when there are any arguments after the order finalized with your company.
Winsell Promotion Teams will be proactively integrating this in discussions you are having with them on up and coming projects, to either see how to plan further ahead or switch either to localised production, when possible, or find alternative products which can be sourced locally and are fit for purpose.
This situation won’t be settled in foreseeable next few months. Pls take a lookt at this notices about the extremely high ocean freight rates coming from China to US Hope we could get through this hard time with our effort