Flexsteel adds freight surcharge as ocean container rates keep rising

DUBUQUE, Iowa – Upholstery and case goods supplier Flexsteel announced a surcharge on imported ocean freight earlier this week. It will be implemented June 19.

“We’re having real issues getting capacity at contracted rates, and we’re forced to move to open market rates to ensure continued flow of goods and strong service levels for our customers,” Vice President of Sales David Crimmins told Furniture Today.

“We’ve hit the point that we can no longer absorb it,” he continued. “We absorbed substantial costs related to ocean freight increases in the winter and early spring, and we were hopeful they’d come down. We saw some relief, but over the past month it has become too much of a burden.

“We will continue to adjust and are hopeful that capacity returns and rates lower to ‘normal’ levels.”

Crimmins said the surcharge covers a $3,000 to $4,000 premium depending on product mix.

“We’re at that level of real costs now and are expecting a rise in rates mid-June and again early July,” he said. “Our view is that the uncertainty and rapid fluctuations are here to stay.”

Other importers have expressed their concerns as well, with most in agreement that prices will keep rising. Some have reported paying as much as $7,000 for a container from Vietnam to the West Coast, and as high as $9,000 to the East Coast.

Will others implement surcharges over the coming weeks? Stay tuned for more details.

See also:

  • Ocean container rates rise again; 3 furniture executives say it’s a growing concern
  • Container rates rise another 16%; they’ve now nearly doubled in three weeks

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