Czech companies are facing an increase in the cost of transporting goods

Czech companies are facing an extreme increase in the cost of transporting goods. One way of a freight container to Asia and back came out during the summer, usually at high multiples of prices from the beginning of this year. The dramatic rise in transport costs is a reflection of the global collapse of freight transport, which has failed to cope with the elemental desire of consumers to spend combined with China's strict approach to coronavirus. According to the E15.cz server, the tension in global transport peaked at the end of the holidays, when prices rose to the highest levels since 2010. In addition, they continue to grow, literally from hour to hour. "Interest in goods from Asia is currently extreme, but there is little free capacity. Prices of maritime transport have risen sharply, in some cases up to tenfold," said Pavla Hobíková, a spokeswoman for the Mall.cz online portal. Similar statements are made from other business addresses. "In 2021, we saw a 9-fold increase in shipping prices. In previous years, the container cost a few thousand dollars, now we pay more than 20 thousand USD (16.858 euros) per container," said the head of the textile company Alpine Pro Vaclav Hrbek. At the same time, the sea route was historically the cheapest option for transporting goods across continents. "Compared to the period before the pandemic, we are now at 400 percent of the original prices," said Martin Hrbek, Commercial Director of Gefco's Air & Sea Division. He added that the situation is unparalleled. "We have not experienced such a situation yet. The pressure on prices will weaken together with the cooling of demand, but transport costs will probably remain permanently higher," says Otto Daněk, head of the engineering company Atas elektromotory and vice-president of the Association of Exporters. According to him, the main problem is the speed with which costs have increased. This is also confirmed by Martin Hrbek. "In maritime transport, we have found ourselves in a situation where prices are flying upwards and the price offers we receive from shipbuilding companies are valid not for several days, but only for hours," said Hrbek. The main wave of price increases due to transport costs may come later. "With the Alpine Pro autumn collection, we plan to increase prices for selected items by a few percent. We will take into account the increased logistics costs more significantly in the spring collection for 2022," added the head of the textile factory, Václav Hrbek.