
Britain’s Retail Industry Demands Probe of Disruption at Ports
Britain’s
retailers and food manufacturers have called on lawmakers to urgently
investigate ongoing disruption at UK ports, warning that delays were hurting
their plans to build stocks ahead of Christmas and the Dec. 31 end of the
Brexit transition period.
The
British Retail Consortium (BRC) and the Food and Drink Federation (FDF) said on
Thursday they had written to Lilian Greenwood, chair of parliament’s Commons
Transport Select Committee, and Angus Brendan MacNeil, chair of the
International Trade Committee, requesting an urgent inquiry into ongoing
disruption at ports and across the shipping market.
The
BRC and FDF said the impact of the coronavirus pandemic on global shipping
schedules and the shipping workforce, along with a shortage of empty containers,
had created significant disruption at many of the UK’s key ports, such as
Felixstowe and Southampton, in the crucial run-up to Christmas.
Because of disruption at ports retailers
face major challenges in building up stock for the Christmas
“This
has meant retailers face major challenges in building up stock for the
Christmas period and for the end of the (Brexit) transition period at the end
of December,” they said.
They
said the disruption was also having a major impact on shipping-related costs.
Disruption having impact on
shipping-related costs; week-on-week cost rises 25%
“Container
spot rates have jumped considerably – in one instance, by 170% from this time
last year. Others have noted week-on-week cost rises of 25%. In addition,
congestion charges are being levied by carriers for imports into Felixstowe and
Southampton,” they said.
Food
manufacturers were facing additional costs to source key inputs elsewhere,
whilst also losing sales due to missed retail promotions, they added.
“After
a tremendously challenging 2020, many firms’ cashflows are under severe
pressure, and so businesses are in no position to absorb these additional
shipping costs,” said BRC Chief Executive Helen Dickinson.
Consumers will pay the final price
because order-delays end in increase in prices
“As
a result, consumers will pay the final price. Christmas orders could be
delayed, and retailers might be left with no option but to increase product
prices.”
Last
week, the BRC warned that shoppers face higher food prices from next year if
new tariffs are imposed in the absence of a trade agreement with the EU.