• Flexsteel Industries, a leading furniture manufacturer, has announced the implementation of a freight surcharge to counter the ever-increasing ocean container rates.
• The surcharge will be applied directly to all inbound ocean containers, starting from June 1.
• Prices have been rapidly rising due to the ongoing COVID-19 pandemic, which has disrupted international trade and logistics.
• The company states that the surcharge will be “limited and temporary”, only lasting until the freight rates return to normal.
• Once normality returns, Flexsteel plans to roll back prices and eliminate the surcharge.
• Flexsteel’s move is likely to be followed by other furniture manufacturers, as they also grapple with the increasing costs of container imports.

Flexsteel Counters Rising Ocean Container Rates with Freight Surcharge

Temporary Measure to Offset Increasing Costs

In an attempt to counter the constant increase in ocean container rates, Flexsteel Industries, an esteemed furniture manufacturer, has added a freight surcharge. To be applied on all inbound ocean containers, this measure comes into effect on June 1.

COVID-19 Pandemic Disturbs International Trade

The freight prices have been skyrocketing as a consequence of the ongoing COVID-19 pandemic, which severely disrupted trade and logistics on a global level. Flexsteel unveiled plans of this new policy stating that the surcharge would be ‘limited and temporary’, and would only continue until the freight rates stabilize.

Rollback Plans and Industry Trends

Flexsteel intends to roll back prices and remove the surcharge once the freight rates normalize, helping to ease the burden on buyers. Meanwhile, industry watchers predict that Flexsteel’s move might set a trend that other furniture manufacturers could follow in the face of rising importation costs.

In conclusion, Flexsteel Industries’ proactive introduction of a freight surcharge reflects the tough adaptations businesses need to make amid continuously shifting trading conditions. Primarily due to the ongoing global health crisis disrupting shipping and logistics, the surcharge will be temporarily applied to all inbound ocean containers. The company hopes to soothe customers’ woes once the situation stabilizes, with the plan to eliminate this surcharge. Meanwhile, the rest of the furniture industry is carefully watching these developments, possibly preparing to follow suit.

originial article https://www.furnituretoday.com/?p=318000

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