But it’s true that people’s rates might be down if they do spot rates only. We like the stability of contract it’s safer. They don’t want to be committed to price.
“Not everyone negotiates contract space,” he said. That, coupled with congestion, is keeping freight a significant cost factor in prices today. But we still haven’t seen spot rates go below contract, which are still three times higher than what they were in 2021. “Yes, container prices have fallen,” said Mike Harris, president of case goods. Rates remain significantly elevated for Hooker Furnishings. They’re finally coming down but remain much higher than what they were historically.Įvery furniture importer is in a unique situation, each dependent on factors like what country they’re importing from, what ports they’re using and, probably most importantly, if they’re using spot rates or contract rates. Ocean freight rates soared to astronomical levels over the past year and a half. “Overland trucking is still expensive with high fuel costs. “Our biggest challenge is still direct container freight to the inner Midwest,” said Doug Rozenboom, president of A.R.T.
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Other logistical concerns right now include high fuel prices, high ocean container rates, a lack of truck drivers and the rising prices of materials. Nussbaum said the company is working on a new 105,000-square-foot warehouse to help accommodate. “I would say the biggest challenge lately has been a lot of furniture retailers are full of inventory, forcing us to delay shipments so they can open up enough space for new deliveries,” said Aaron Nussbaum, the company’s director of logistics operations. Indiana-based logistics provider Jarrett Trucking also pointed to inventory issues.
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