Last December, the British & Irish Association of Fastener Distributors warned that a shipping container shortage at major global export ports was limiting fastener availability in the UK and Ireland, hiking container freight costs three-fold.

BIAFD sees little chance of significant improvement in availability or freight costs until the second quarter of 2021, director Phil Matten said.  

Freight cost increases combined with rising steel and stainless steel raw material costs mean fastener costs will increase significantly, he predicted.  The current situation is significantly worse. 

“The problem is global, and not directly related to the UK leaving the EU,” Matten told the BAIFD.  “That said, issues at Felixstowe Port, which knocked onto other UK ports, have exacerbated an already critical situation.”

The escalation of Covid-19 infections in the UK now also means shipping lines continue to avoid British ports, preferring to off-load in Northern European, which adds a two-week delay in goods arriving in the UK, Matten added.

The latest reports from BIAFD importing members show Asia-North Europe container freight costs have jumped five times higher than mid 2020, Matten reported.  For a container of standard fasteners with a low value per weight, the freight cost now equals a third of the value of the consignment.

Some BIAFD members have decided it is too expensive to import now, “even though current inventory is rapidly eroding to support increased demand from construction and manufacturing,” Matten reported.  Most fastener importers are competing against high value consumer goods for scarce containers and being forced to pay massive premiums.

There are additional charges of several hundred dollars to ensure a container is collected in time to be loaded for shipping.

There are signs of limited improvement in container availability in key Asian exporting ports as shipping lines reposition empty containers while container manufacturers struggle to supply new boxes, Matten reported.  However, there is “little immediate prospect of major improvement,” with the 16-day Chinese New Year beginning February 12.  The holiday means a surge of export activity ahead of factory closures, increasing pressure on extremely limited container capacity, followed by several weeks of catch up, once factory, haulage and port operations return to work.

As early as the second week in January, freight agents told BIAFD importers that there was no possibility of their containers being shipped before the Chinese New Year.

While governments may be losing patience with shipping rates and supplementary charges, “threats of capping shipping costs or competition authority investigations are currently doing little more than shaving the very tip of the iceberg,” Matten concluded.

The British & Irish Association of Fastener Distributors represents 85 UK and Ireland fastener importers, wholesalers and distributors.  Web: BIAFD.org