Author Topic: Please explain why it went up in price 2021  (Read 3584 times)

Offline AsherO

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Re: Please explain why it went up in price 2021
« Reply #60 on: May 16, 2021, 12:30:32 PM »
Relentless demand + lower capacity

Shouldnít a fivefold+ increase in price quash demand?

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Re: Please explain why it went up in price 2021
« Reply #61 on: May 16, 2021, 02:38:19 PM »
Shouldnít a fivefold+ increase in price quash demand?
Only if the retailers refuse to give price increases, but then they'll have no goods to sell.

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Re: Please explain why it went up in price 2021
« Reply #62 on: May 16, 2021, 03:39:48 PM »
Only if the retailers refuse to give price increases, but then they'll have no goods to sell.


Retailers are not paying spot market prices, they have contracts.

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Re: Please explain why it went up in price 2021
« Reply #63 on: May 16, 2021, 03:42:33 PM »
Shouldnít a fivefold+ increase in price quash demand?



It will to a point, I know some are holding off bringing in new product because of the insane shipping cost.
Btw in terms of making it worthwhile to manufacture here in the us, this is probably more effective then any tariffs. 

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Re: Please explain why it went up in price 2021
« Reply #64 on: May 16, 2021, 03:46:26 PM »


Retailers are not paying spot market prices, they have contracts.
It really depends on your industry and what you sell.
I'm talking about cases where you have importers/wholesalers who sell to the retailers.

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Re: Please explain why it went up in price 2021
« Reply #65 on: May 16, 2021, 03:51:48 PM »
It really depends on your industry and what you sell.
I'm talking about cases where you have importers/wholesalers who sell to the retailers.
Also, many times they import directly and they are certainly paying higher freight.

Offline AsherO

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Re: Please explain why it went up in price 2021
« Reply #66 on: May 16, 2021, 04:33:26 PM »



It will to a point, I know some are holding off bringing in new product because of the insane shipping cost.
Btw in terms of making it worthwhile to manufacture here in the us, this is probably more effective then any tariffs. 

Probably depends on shipping cost applied to each unit, and profit/margin on said unit. Probably varies greatly between industries/brands/quality levels.

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Re: Please explain why it went up in price 2021
« Reply #67 on: May 16, 2021, 06:33:49 PM »
Why lower capacity?

From my understanding capacity is down due to COVID mostly. The freight industry is historically a low margin and efficient industry, which means thereís enough equipment to handle a small uptick but not much more. When COVID started, the shipping companies canceled a lot of sailings, but they continued to blank sailings through October even when demand was high enough, claiming that they expected it to slow down again. Of course that been false, but they donít suffer from these foolish decisions, in fact they earned a lot more with the limited capacity. That capacity has never been reclaimed, mostly because of the interconnected parts that have been slowed down during COVID. For example- warehouses had few workers, which means containers get unloaded in 5-6 days instead 1-2 days. This meant chassis were rented for longer and there were no chassis available to pick up containers at the port. The port, suffering its own shortage of workers, now has a glut of containers waiting to be picked up, and starts refusing ships from docking. Those delayed ships get their next destination much later, causing delays and further issues.

Then you have the containers themselves, weíve had issues getting hold of containers, again this has to do with minimalist infrastructure and trade irregularities during COVID. Eg. China exports more than it imports, so where do they get containers from? Itís a constant juggling act to get empty containers from letís say LA back nto China. They need to find a way to get that container back to where itís needed most, whether sending it empty or through some other way.

This is what I understand based on the shipping issues Iíve experienced and news I follow but Iím sure itís a lot more complex than what Iím saying. But bottom line the shipping industry is extremely complex with many moving parts and little flexibility, lots of pent up demand, more so from stimulus, suez canal fiasco, itís gonna take a while for all this to sort out.

Finally on the booking side, when companies realized that their containers were not getting bookings, they started booking a month out or paying insane prices to get the goods in on time.

Offline AsherO

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Re: Please explain why it went up in price 2021
« Reply #68 on: May 20, 2021, 10:00:58 AM »
Another tiny inflationary blip:
https://tmo.report/2021/05/assisted-support-fee-increasing-to-30-sim-fee-dropping-to-0/

T-mobile is increasing in-store upgrade support from $20 to $30, theyíre pretending itís offset by $10 sim fee decrease to $0, but that sim fee was frequently waived anyway.

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Re: Please explain why it went up in price 2021
« Reply #69 on: June 03, 2021, 08:21:06 PM »