Amidst significant challenges in the global shipping market, Ashley, a leading furniture retailer in the US, has announced price increases across all products due to disruptions impacting shipping capacities and escalating costs.
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John Mask, Senior Vice President of Strategic Sales, highlighted multiple factors contributing to these challenges, including surging demand exacerbating capacity shortages, severe port backlogs, disruptions at the Suez Canal, and historically low vessel speeds.
In response, Ashley has secured additional container volumes but at higher-than-anticipated costs, necessitating price adjustments effective July 15, with all open orders repriced by July 29. Domestic case goods and bedding will see a 1% increase, while other products will rise by 3%.
Ashley plans to review pricing once container freight costs stabilise. The company's decision follows similar actions by other major importers like Flexsteel, reflecting the industry-wide struggle with soaring spot rates, currently up over 60% in seven weeks.
Source: www.furnituretoday.com