Greetings from Euroland,
Last week I was telling you about how upbeat everyone was feeling with the news about the vaccine and a heap of other good news.
It was a Happy Day.. you can read about it here.
This week it's back to a regular level of stress as hopes of a Brexit Deal this Christmas diminish. By Sunday we might have some more firm news one way or another.
But it's not looking good as the ports are already jammed, booking a container from Asia is like trying to get tickets to the Queen's last garden party.
Coco was telling me even after getting a booking, they can increase the prices an hour before loading and tough luck, take it or leave it attitude.
It's a bloodbath.. add to this a self imposed Brexit mess on top of a looming recession, on top of Christmas, on top of covid. What the jeepers is happening!!?
So annoying when the glib government ministers keep saying British business needs to be ready for Brexit, and how much money they have spent on educating us. Websites with bad links, unanswered questions, changing scenarios, confusion and useless webinars.
Good job we have been getting ready for Brexit for the last three years. Making our own plans.
In Slovakia Tomas is busy negotiating extra warehouse space, he managed to get 200 pallets in a warehouse across the road. In Spain we just this week racked out another 1000 sq meters of warehouse space.
Plus two new jobs in Spain and several in Slovakia.. are you sure you are taking back control Boris?
All that business that used to come from the UK to Europe will now go from Europe to Europe.. this must be happening across many companies and industries.
Not bad.. this is one days work. There is still blue sky in Spain. The English and French versions of our Spain websites are 90% ready. AWArtisan.eu and AWArtisan.fr If you are outside the UK, and worried about getting supplies.. DON'T WORRY!! We have Plan A and B and C.. whatever happens we have ways to keep you supplied.
Tomas, Katka and Raul (and me) have been devising plans like mad. The shipping companies have plans.. but could be expensive.
My favoured plan is to load a lorry once a week with all the export orders and take it to Slovakia.. to the shipping depot.. AW Slovakia imports it and then reinvoices to you our customers. Since shipping from Slovakia is cheaper than UK, and the cost of the truck would be about €1.50 per carton.. it could even cost about the same to ship. Watch this space.. but don't Worry!!
Despite the container congestion, miraculously we are still receiving containers.. This week Salt Lamps came from Pakistan.. so lots back in stock.. see below. On this shipment.. a new product.
This is Bryant's baby. Normally Tomas and I devise, develop and design new products.. Normally this is best done face to face but these days it's been done remotely and slowly..
So Bryant our imports manager fancied having a go.. he is the proud father.. of a set of salt lamp shot glasses.
A bit more about the container crisis.. I know some readers like to know about the business nitty gritty.
Normally it costs about $2000 to get a 40ft container from Asia to the UK.. give or take $500 depending on supply and demand. This week the market price hits $10,000 and prone to change even after booking.
So that's an extra $8,000 - and since an average container of gift products might hold $80,000 of stock... you can do the maths - it's adding 10% to the cost.
With bulky or low value products (like food basics) which won't be anything like this value.. the percent increase could be 30% or 40% in some cases. Scary.
On top of massive spending by governments, I can't see how hyperinflation can be avoided.
So on that bombshell.. let's move on to something more cheerful.
It's almost Christmas. What do you want for Christmas?
I want the best ever Christmas song.. the one that really cheers you up.. and since I didn't see Coco my wife, since last Christmas.. it has to be..
If that doesn't put you in the mood, nothing will.
Take care, stay safe.
More news next week.