Builders Running Out of Supplies as UK Port Muggings Raise Brexit Concern | Deal

Builders are running out of everything from power tools and screws to lumber and tiles as stagnation in UK ports delays crucial deliveries and sets off alarms in the run-up to Brexit.

UK ports have been grappling with a surge in cargo volumes at a time when their ability to process everything is hampered by coronavirus restrictions.

Since September, the country’s largest container port, Felixstowe, has been handling around 30% more freight than usual, and companies are rushing to replenish their stocks after the end of closures and accumulating reserves before they end of Brexit transition period.

Chain stores have already reported shortages of essentials like washing machines and refrigerators, as well as toys, as they scramble to get shipments through the Suffolk port.

The consequences of congestion, which has spread to other major ports, including Southampton and London Gateway, are being felt in various industries.

John Newcomb, executive director of the Federation of Builders’ Traders, said ports were becoming a “major problem” for its members. They have enjoyed blistering sales as the locked-in Brits renovated their homes, but were experiencing availability problems because they “can’t get materials any faster.” The contraction also pushed up the price of goods.

“There seems to be a growing problem getting products through ports,” Newcomb said. “Instead of taking a maximum of a week to download, it takes up to four.”

Wood is of particular concern (the price has risen between 20% and 40% due to supply problems in Scandinavia), but there is also a shrinking supply of tiles, screws, fasteners, tools and appliances such as washing machines and fridges, he said. said.

In recent weeks, congestion at Felixstowe, as well as other ports, has encouraged ships to ‘cut and run’, either partially unloading or skipping the UK calls entirely and unloading cargo in Rotterdam, Antwerp and Zeebrugge. said Mirko Woitzik, an analyst at Supply chain risk advisory firm Resilience360. Some operators are discussing not calling Felixstowe until February for fear that he is still stuck, he said.

The building materials shortage had so far been felt by retail chains supplying builders, but Newcomb said that since the situation is unlikely to be resolved for several months, it would also become a problem for large contractors. . The BMF has raised the issue with the government as high demand has prevented the construction trade from piling up in the run-up to Brexit.

The coronavirus pandemic has destroyed the balance that usually exists in the maritime supply chain. Robert Keen, Managing Director of the British International Freight Association, said that over a 10-week period logistics companies went from being unemployed to a situation where almost no ships were idle. These extremes had led to a “breakdown of the ship and container conveyor belt, and the return flow of empty containers,” which was a major cause of congestion, he said.

The resurgence in demand has resulted in a scramble for space on container ships plying shipping lanes from low-cost manufacturing hubs like China to large consumer markets including the United States and Europe. UK companies are reporting stratospheric increases in shipping costs, likely to add to price pressure in the new year.

Simon Midwood, managing director of family-owned building materials supplier Timco, said its shipping costs had increased by more than 300%. That added cost was driving cost prices up by 3% to 17%.

With port delays already causing shortages of popular toy sets like Barbie, retailer The Entertainer said it was facing dizzying import costs from China, from $ 1,000 six weeks ago to more than $ 6,000.

Gary Grant, the chain’s co-founder, said that could mean higher prices for shoppers in 2021 as retailers struggle to absorb rising costs. The situation was exacerbated by the uncertainty surrounding the import taxes that will be applied after Brexit, he added.

Last month, The Guardian revealed that 11,000 containers of PPE purchased by the government were part of the problem at Felixstowe. That backlog has dropped to about 4,000 and should be cleared by Christmas. The port said it expected the increase in container volumes to last until January, but was “working hard to minimize the impact on daily operations and maintain vital supply chains.”