According to a study, if congestion at the UK’s largest port continues until December, retailers will face a Christmas delay of £ 1.5 billion worth of goods, potentially affecting sellers from Primark to Chanel.
According to analysis by risk modeling firms, clothing and appliances directed to major high street names are one of the sectors most likely to be hit by delays in Felixstowe.
The accumulation of cargo waiting to pass through the UK’s largest freight carrier, the port, has been blamed for a shortage of HGV drivers and lack of space in warehouses and distribution centers.
The Russell Group, which provides data to insurance companies and corporate customers, found that retailers such as Tesco, John Lewis, Marks & Spencer, and Asda will value tens of millions of pounds of clothing as congestion continues until Christmas at the port of Suffolk. He said it suggests that he faced a delay in fashion and fashion. period.
Analysis shows that even French luxury car Chanel can be affected, with £ 30m worth of clothing likely to pass Felixstowe in the next 10 weeks.
A trade group representing Britain’s ports warned last week that global shipping problems would last for nine months, but some retailers said no significant delays in consignment had occurred yet.
John Lewis said one of its big Christmas shipments arrived as planned this weekend.
Primark, whose £ 10.1 million worth of clothing will pass Felixstowe by Christmas, said there was “some disruption” in the supply chain but not significantly affecting inventory levels.
Using its own data to compare the flow of trade through Felixstowe during the same period in 2020 with current conditions, the Russell Group estimates that approximately £ 7 billion of goods pass through the port each year, of which He said about £ 1.5 billion was at risk. If the current problem persists until Christmas, it will be delayed.
We found that clothing, electrical components, and home appliances are the three types of products that are most likely to get caught up in delays.
Danish Maersk, the world’s largest shipping company, revealed on Tuesday that it is diverting one of its giant triple E-class vessels, which can hold 18,000 containers each week, from Felixstowe to avoid congestion at the port. I made it.
As a result, approximately 4,000 containers bound for the United Kingdom arrive in the United Kingdom after being unloaded on the continent and then transported via the Channel Tunnel or by small freighter to other ports.
Russell Group’s analysis suggests that £ 46.17 million worth of clothing imported by Asda supermarkets is at risk of being caught in a delay. Tesco’s numbers were £ 33.7m, while John Lewis and M & S’s numbers were £ 32.2m and £ 30m, respectively.
£ 160m worth of electrical components and £ 104m worth of consumer electronics are also for many of the UK’s leading retailers and can be subject to delays.
Suki Basi, Chief Executive Officer of Russell Group, said:
“Therefore, blockages at major ports disrupt the entire consumer and corporate value chain.”
Felixstowe’s problems are largely due to the lack of transportation capacity to collect containers after they have been unloaded, with average collection times increasing from 4.5 to 10 days in the last two weeks. ..
Yesterday, port owners claimed that the situation was improving and the containers were cleared for recovery within minutes of being unloaded at the quay. It is understood that some containers are collected within just two hours of arrival.
According to industry sources, the United Kingdom has long operated a parallel system for transporting containers from major continental ports such as Rotterdam to the United Kingdom via channel ports, shipping directly from China and the Far East to Felixstowe. This route, which uses a smaller UK port, is expected to eventually absorb the excess demand for shipping containers to the UK.
Retailers have pointed out that the cargo is received on a regular basis and that there is already a large inventory of Christmas in the UK.
A John Lewis spokeswoman said, “We haven’t seen any impact at this time, but as you can imagine, we closely monitor the situation and work closely with our suppliers.”
Chanel declined to comment. Tesco, Asda and M & S did not respond to requests for comment.