EASTVALE, Calif. – Parker House implemented a significant reduction in its ocean freight surcharge in June, citing declining container costs.
“Demand has slowed tremendously, especially from the second half of last year,” Chief Operating Officer Doug Townsend told Furniture Today at the time. “Factories are shipping things that were ordered nine months ago. There’s a tsunami of inventory out there.”
Now, Townsend said the company is considering reducing the surcharge further. “Ocean container rates are down 35% to 40% from last Q4 and Q1,” he said. “They’ve been reducing slowly and steadily since post Chinese New Year.
“We are looking closely at reducing the surcharge again.”
According to shipping analyst Drewry, ocean container rates are down 38% from the $10,377 peak seen last September.
Parker House imports from Vietnam into Long Beach. The company supplies furniture for the living room, dining room, entertainment, office and library categories.
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Robert Dalheim, senior editor of case goods and global sourcing, has been writing about the woodworking industry and business news since 2015. He is a graduate of Northern Illinois University with degrees in journalism and political science. Contact Bobby at [email protected] or by calling (336) 605-3815.
