What is Alpha Sauna has been influenced under the speed of freight?
author: Jomie
2021-10-25
Barrel Sauna | Square Sauna | Indoor sauna | Infrared Sauna | Wooden Hot Tub | Cold Plunge Tub | Wooden Bathtub | Sauna Accessories
Sea transport is one of the most important pathways that enable cross-regional connection between sellers and buyers, which helps production factors in the world's effective allocation, affecting the economic development of a region. In the past two years, impacted by the epidemic, freight price was soared, and the trend of shipping costs has now become close attention to the every department of international trade.
As a rapid development company with 100% export, we deeply feel that the growth of sea freight is a huge impact on sauna products export. There is no doubt that production is greatest impact first. Our products include barrel sauna room, wooden hot tub, sauna accessories, etc solid wood material, timber usage is almost 100%. the main wood raw materials we use are including Canadian Red Cedar, Finland Pine, American Aspen, etc. Almost of them come into import. With the crazy rapid of the freight, greatly raised our wood material costs has come. Worse, and a large part of the timber vendors start to reduce the import of timber concerning the market risks, and the wood supply has become very shortage, which has more exacerbated price competition of wood market.
Not only rises raw materials, the instability of the ship in the epidemic also affects our delivery time. Although the shipping cost is in a crazy
state, but container is often lacking due to the affection of the pandemic. This makes both the arrival time of the material and delivered goods are in risk of abundant. When we try to communicate with the freight forwarder to get a certain shipping schedule, the response is often: booking has been arranged/goods are on board already, we waiting for the shipping company to update it. Shipping company acts as the core.
The crazy rise in the sea freight also affects the seller's market. Freight, raw material prices soaring, and the factory can only re-adjust the price in order to survive. This eventually drives the rise in the price of the customer terminal. In addition, prices have also made many customers began hesitated ， they wait and see in the market, in this case, their sales plan is impacted unavoidable. From the sales data of our barrel sauna room, wooden hot tub, sauna accessories etc, many customers' order time has changed, and some customers have locked the annual, semi-annual orders in advance to deal with the rise of materials and to ensure relatively stable delivery.
The impact brought by sea freight is double-sided. Some suppliers did not receive customers’ support under cost pressures. Finally, they got to bankruptcy. Some sellers choose to wait and see under the change of prices, and their original market is preempting by other customers because of not timely supply. It can be seen that the supplier is interdependent with the seller. Only the supplier trusts each other with the seller, and supports each other is the best way to address the challenge.
