Page 11 - BOSS Today Issue 51

BOSS Today #51

o says Geoff Betts, Managing Director, #2 Happy New Year?
SStewart Superior, about the factors If this wasn’t bad enough, this shortage
driving the 300-400% increase in freight coincided with the usual supply hiatus
costs since the end of November/early caused every year by the Chinese New
December 2020. It’s clear that this Year holiday, as Steve Haworth, Group
extraordinary increase was caused by a CEO of EVO Group, explains: “Every year
convergence of several factors: we have to build stock through January
and mid-February because everyone goes
#1 Sitting on the dockside away in China for Chinese New Year. It was
The onset of the COVID-19 crisis in normal stuff, really, but it came at a time
the spring of 2020 saw a global spike when these other issues were happening,
in demand for containers to ship huge so there was no room for a catch up in the
imports of PPE and other products from supply chain as there normally is.”
the Far East: however, a large amount
of containers filled with excess PPE #3 Brexit blues
products were then left to stockpile in These two elements were compounded
deep water UK ports. This in turn created by delays caused by the final throes of
a shortage of available containers going Brexit on 31st December 2020, as Jo “It’s supply and demand -
back to China to be refilled and returned. Partridge: Regional Consumer Business
In short, there were too few available Group Leader at 3M, explains: “The if every container in the
containers and too many sitting in the main challenge was linked to documents world is filled with PPE
wrong locations, as Betts explains: “It’s and customs clearance requirements,
supply and demand - if every container especially on shipments from Great Britain and masks, there’s not a
in the world is filled with PPE and masks, to the EU. It seems that quite a number lot of space left for filing
there’s not a lot of space left for filing of UK companies didn’t have experience products!”
products! Places like Felixstowe were with the requirements of proper export
rammed with containers full of PPE that documentation, which caused delays Geoff Betts, Managing Director,
nobody could take because there was no and challenging discussions with the
room.” forwarders and authorities.” Stewart Superior

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