Long shot this one!!!

We're due to get a container of goods from China in the next few weeks but we've received a letter today from company we've bought the goods from (UK based) saying that shipping costs have risen massively over the last few months and they want us to pay towards the extra.

They are saying costs have gone up from $1800/container to $4000/container – are they spinning us a line due to their cock-up or have shipping costs increased that much?

Cheers

As far as i'm aware, i have the flimiest of connections to shipping containers.

A deep sea container shipped from China will have been booked by a broker yonks ago so the cost to them is set then , because the space on a ship for container will have to have been booked prices set then not now.

Think they're spinning a yawn (sounds like they've cocked-up) to profiteer from your ignorance, is the container already on route or still at port?

Ask these fellas:http://www.orionshipping.co.uk/deepsea.aspx, i've no connection to them but might be worth asking.

Although I work for a port I have nothing to do with the commercial aspect but AFAIK all the major shipping lines are talking about and asking for rate rebates and reductions in fees. The same major shipping lines have, over the past year/18 months been parking ships up left right and centre to try and reduce the number of ships on the sea and consolidate all their costs. I'm sure if you google a picture of Hong Kong and Singapore habours you'll see all the ships parked up awaiting an increase in container traffic.

If I'm honest it sounds rather flimsy to me

HTH

For an already booked container they are taking the piss.

However, costs of container shipping across the pacific are likely to increase this year.

Definitely sounds to me like the original costing was wrong and they are now trying to claw back for their mistake.

I used to be (and hopefully will be again) a proposals engineer. I had to live with the cost that the contract was signed at if I made a mistake. No company I ever sold to would cough up the dough if I had gone back and asked for more. The only time that we ever clawed back any changes in costs was if the customer asked for a change to something and we could nip the extra costs in. Are you buying the freight direct or through your supplier? If the latter you may want to keep the supplier sweet and meet some of the costs. If you bought direct from the freight company then you have a contract with them to deliver your goods at a price they agreed to. I wouldn't pay them any extra and indicate that you aren't going to put up with any "oh your shipment has been delayed" guff if they decide to try it on.

Thanks fellas.

Has anyone from the day-time gang got any more to add?

You agreed a price beforehand?

Stick to your guns. I wouldn't rate your chances of repeat business very high though