Since the outbreak of the pandemic, the shipping industry has been shaken up due to the severe shortage of ships and containers, coupled with soaring consumer demand. 

 

The aforementioned reasons have led to a logistical bottleneck in the distribution of goods, which has led to a rise in prices and delayed the arrival of containers. This has given rise to the big question that is all over the front pages of the newspapers on a daily basis: will the products arrive in time for the Black Friday and Christmas campaigns?

 

We would like your last trimester to continue to be a success

 

After what has been going on over the last few months and what is expected in the coming months, it is likely that products that are not yet available will be delayed by between 30 to 60 days

 

For this reason, ITEM International recommends all customers buy the furniture, decor and accessories that we currently have in stock in order to guarantee the success of upcoming campaigns.

 

Furthermore, during the month of October and November, we have an active win-win campaign, in which, by buying available stock, customers will receive a discount for that purchase and an extra towards the next one.

 

We are adapting to the changes

 

In order to deal with the changes in maritime transport, we have had to adapt to them.

 

Firstly, we have lengthened the estimated delivery of our products, as the shipping industry has extended its delivery times from 35 days to 60 days. With demand outstripping supply, ships have to carry more containers, as well as make more stops than usual. This leads to delays, both in unloading and in transit.

 

For example, before the pandemic, the reference MB-189000, with a shipment date of 1/10/2021, would have been in our warehouses in the first week of November. However, due to delays, it will arrive in the first week of January. 

 

On the other hand, this crisis has not only affected the delivery of the products, it has also led to an exponential increase in the price of each container. For example, taking the same reference; previously, the container transporting MB-189000 from Hangzhou to Castellbisbal cost €1,500. This same container has now shot up to €14,800.

 

New solutions

 

As mentioned above, shipping costs have skyrocketed and this has also been passed onto the price we charge for our products.

 

Three examples are given below to explain this change.

 

  1. Vase LD-184821 initially cost €29.98. It sold very well. Because of the increase in the production price, due to the lack of raw materials and the shipping costs, the system tells us that we should sell it for €44.92. However, we've lowered the price to €39.75. In this case, ITEM is willing to lose €5 in order to remain competitive.
  2. The DC-180822 basket originally cost €37.85. After calculating the costs, the system sets a final price of €53.41, although we end up selling it for €48.75, accepting a loss of €4.6.
  3. The piece of furniture MB-186096 initially cost €399, after adding up the costs, the system suggests selling it for €459.08 , but we end up selling it for €435.05, accepting a loss of €24.

 

What was not a big issue before, now leads to a considerable increase in cost. For example, in the first two cases, both the baskets and the vases have a very large volume of air, which increases costs.

 

ITEM International is doing its utmost to contract more containers with a view to guaranteeing delivery of our products, even if this means a 1000% increase in transport costs.

 

Buy ahead of time

 

As originally announced, one of the biggest concerns at the moment is whether the products ordered will arrive before the Black Friday or Christmas campaign. 

 

If you really want to ensure that the campaign is a success, it is best to buy the products that are in stock, as the delivery of other products may be delayed by more than 60 days. Furthermore, by buying this stock, we can ensure the immediate delivery of the products.

 

On the other hand, all products in our warehouse are very competitively priced without the increases caused by shipping or raw materials. By buying products we currently have in stock, you will be able to show your customers cheaper products, which have not yet been affected by price increases caused by increased shipping costs.