We find ourselves, unfortunately, having to write to you again regarding the continuing increases in container freight costs. When we addressed this situation a few months ago, we did our best to limit price increase to future orders only. Sadly, with the continuing deterioration of the shipping market, that approach is no longer possible.
Beginning next week, we will be applying a 5% surcharge to all open and unshipped orders to help us offset a portion of the rapidly escalating freight costs we’re facing.
As you all know, the container freight market has been steadily climbing over the past year. When we last wrote to you, the cost of a container had tripled over prior years. Since then, costs have climbed even faster and we are now paying a rate 6 times higher than average. To emphasize the magnitude of the problem, even paying that higher rate doesn’t guarantee space for everyone. Think of it as Atlanta Market hotels suddenly being $2000 per night and yet you still can’t find a room. We are leveraging our longstanding relationships with our shipping partners to prioritize our cargo. But that cargo is moving at the very high rate everyone in the retail industry is currently facing.
Our goal is and has always been to get you the best product at the best price. This year’s logistical challenges have forced us to re-calibrate somewhat with our focus being just getting product here. We are fighting every day to keep the pricing down but we’re having to balance that with just making sure we all have product to sell. As our customers, you are at the heart of our business, and we want you to know we are doing everything we can to keep your shelves stocked for a successful 2nd half of the year.
The surcharge will apply to all existing and future orders and will stay in place until the container market stabilizes. You will see this surcharge near the bottom of your invoices listed as an “Importing Surcharge %.” We hope as much as you do that the stabilization comes sooner rather than later so we can offer you even more value in the future.
We thank you for your loyalty to BCL and for your understanding during this turbulent shipping era.