Toy firms urging action on ‘insane’ prices

The government must make forcing companies to lower shipping costs for UK businesses a top priority, the director of a London-based toy company has urged.

Bosses of British toy businesses have spoken of how “insane” price hikes in shipping tariffs around the world are “killing” their trade, and pushing the price of products higher.

Children’s toys are among items likely to be more expensive this Christmas.

Many in the industry have warned that the situation looks set to worsen into next year if Boris Johnson and his Cabinet do not intervene to put pressure on shipping companies to lower their prices.

Shipping firms, such as Maersk and Cosco, have been accused of being responsible for this year’s tenfold price increases.

Joel Bercowitz, owner of The London Toy Company, said: “We can’t bring in goods and not make any money. We’ve got our own bills to pay, staff to pay, and we can’t operate like this for much longer.”

Mr Bercowitz said that pre-pandemic, his company was paying $1,800 for a container but currently is paying anything up to $19,000.

Founder of Wow Toys, Nadim EdnanLaperouse, said he is paying as much as $20,000 for a container and said his shipping costs in total have increased eight-fold.

Problems are said to start at the ports in the Far East where there is a lack of empty shipping containers – an aftereffect of the Covid-19 pandemic.

Companies must wait weeks for a container to become available and then they are sold to the highest bidder.

Congestion at UK ports and a lack of HGV drivers to transport goods is causing further delays.