Amusement machine importers are struggling with shipping costs, mainly between Asia and the UK or US.
The problem has added considerably to the cost of new machines for operators, according to major distributors who report that freight charges are now three or four times what they would normally be.
James Anderson, commercial and sales director at BANDAI NAMCO Amusement Europe in London, said: “There are a few variables causing issues with shipping, like the usual Chinese New Year lead-up with cost increases and weather conditions in North America, but Covid-19 is also playing a major role in intensifying various factors this year.
“The pandemic has hit us in the air, the sea and on the roads; fewer flights means less opportunity for air freight with limited capacity, and dock workers and truck drivers are battling staff shortages from a direct impact of the virus. News this week tells an example of a US port where 700 workers have been struck with the virus, leaving boats lined up waiting to unload. This then has knock-on effects to shipping schedules with backlogs and dramatically longer solutions, including redirecting and trucking goods from different destination ports.
“Additionally, it is believed that the shipping lines are trying to make up for lost revenue earlier in the year, but there are not enough containers in the right locations (e.g. China) to satisfy the demand for goods to be moved - with extra PPE goods contributing to congestion and shortages. Containers in Asia have gone up more than fourfold in recent months. This should reduce after Chinese New Year, however, unlike normal circumstances, it’s doubtful that it will reduce all the way back to previous levels this year. This can mean a dramatic increase in the landed costs of goods (especially the bigger ones, where you split the cost of the container over the number of units in it) but BNAE is striving to keep any additional costs to a minimum.
“We know this is not ideal, but it’s an unavoidable situation that we all have to navigate through one way or another. As long as we have a little patience, understanding and a strong hope that this will not be a permanent situation, we can crack on and work with the shipping lines where possible.”
The situation was confirmed further by Paul Williams, CEO at Sega Amusements Europe. He said: “Current shipping prices are three to four times what they should be. Luckily, at the moment we have enough inventory in the UK. Due to the timing of the pandemic at the beginning of the 2020 purchase season, we have already stocked up. I hope that freight prices will decrease after Chinese New Year. However, a lot of suppliers are saying that they expect a 20 per cent increase in component parts due to supply chain problems.”
