I design kitchens using a premium European brand of cabinetry. I work for the U.S. arm of a European firm. We are going to have a price increase the first of January. We are having a price increase in the face of the Euro being at a low compared to last year, and this little bit of news:
Freight prices are at record lows not just due to weak demand, but overcapacity in shipping supply.
Source: Flexport
Just a bit from the post:
It costs $300 to move a 40-foot container from Rotterdam to Shanghai, which is barely enough to cover the cost of fuel, handling, and Suez Canal fees. Here’s some more context. Let’s say that you want to travel for a year; it’s cheaper to put your personal belongings in a shipping container as it sails around the world than to keep it at a local mini-storage facility.
There is a very interesting chart over there too.
I’ve already asked once about the justification for the price increase. And like the good little soldier that I am, I will enthusiastically enforce the price increase. But… The economics of the situation tell me we should be getting a price decrease for the coming year…