UK contractors are suffering from the knock-on effect of a shortage in global shipping capacity.
Shipping costs from Asia to the UK soared 500 per cent between June 2020 and June 2021, according to Philip Damas, head of supply chain advisers at maritime consultants Drewry. “We are starting to see super-inflation in transport costs feeding into inflation in construction and other goods,” said Damas.
Civil Engineering Contractors Association (CECA) director for the North East Stuart Miller said that members of the organisation are experiencing the “knock-on effects” of the rise in shipping prices.
“Price rises and shortages of materials is now a business-critical issue which puts at risk the recovery of the whole construction sector,” he said. “The knock-on effects could lead to delays in project programmes but the price rises could have a harmful effect on any contractor who is locked into any fixed-price agreement, particularly for a long time period,”
In early 2020, there were massive delays at trading ports caused by the pandemic’s impact…
