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Parents urged to buy toys and presents early for Christmas this year as soaring shipping costs threaten shortages

TOY importers are warning parents to get their Christmas shopping done early as soaring shipping costs risk price rises and empty shelves.

Freight costs have surged in the past year and are threatening to sustain inflation far beyond the effects of reopening.

The cost of shipping a standard 40ft container from Shanghai to Rotterdam – Europe’s biggest port – has skyrocketed to more than $13,000 (£9,300), according to maritime consultancy Drewry. Twelve months ago it was less than $2,000.

The eye-watering rises are rapidly eroding importers’ margins, forcing them to increase prices. Yesterday, Barbie-maker Mattel warned it would have to raise prices in the coming months due to higher costs.

Earlier this week, rival Hasbro warned it expected sea freight costs to be an average of four times higher this year than in 2020.

David Gould, a director at DM Gould Wholesale, a major UK importer of toys and seasonal products, said his company was having to pay up to $18,000 per container.

“As time has gone on, these costs are filtering through with new stock that we deliver to the retail trade,” he said. “Obviously, that’s then being passed on to the consumer through higher prices. It’s the only way that we can actually economically bring the gear in.”

Gaynor Humphrey, commercial director at Best Years, which supplies toys to many independent shops, said the cost of containers had tripled since Easter. “I’ve never ever experienced anything like this,” she said, adding that shipping companies were coming up with “farcical” reasons for introducing higher costs.

Some companies were delaying orders in the hope that rates will subside, raising the possibility of shortages.

Mr Gould recommended consumers shop early: “There are going to be further sub shortages and inevitable price increases.”

Ms Humphrey warned parents: “If you find it [a certain toy you want], buy it, because either you won’t get it near Christmas, or the price could have gone up,” he said.

Covid-19 restrictions are slowing loading and unloading, which has led to blockages at ports in the US and Asia.

Part of the problem is also that a misaligned emergence from lockdowns means many Western manufacturers are not at full capacity. The week-long closure of the Suez Canal in March has added to the problems.

Global trade began to level off in May, and economists are now warning container costs are weighing on demand – spelling trouble for the global recovery.