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Originally Posted by Catfish
^ Additionally almost all companies ride the wave of raising their prices, even if not affected at all. "Reasons" range from corona, market changes, delivery chains, China, Russia, Taiwan, Russia, war to "others do it too".
[sarcasm]
We can be sure that prices will go down again when the crises are over.
[/sarcasm]
edit brexit has indeed some consequnces. Buying spare parts or even cars in England has become too expensive, apart from english companies raising prices "just so" you now have to pay value added tax (double), additional export and import taxes, and fight all kinds of new barriers, that really are old ones from the times England was not in the EU. A spare part recently bought that used to cost around 17 pounds, is now at 80. Not again, guess will sell all the stuff.
A lot of automotive Companies (including vintage cars and parts dealers) want to stop trade or have already given up.
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Everything has had an impact for sure Covid, Brexit and Russia - Ukraine war.
On the logistical front Covid has been the biggest issue, to give you an idea there was at the peak over 100 ships at anchor waiting for a berth in Los Angeles and Long Beach which is the main west coast container port and responsible for 40% of imports to the USA.
China basically shut down which meant that the ports closed and all the ships piled up outside and now they follow each other to the next port and compound the issue whereas before they were nicely spaced out.
Couple that to lack of truck drivers they cant clear the ports fast enough and cant get empties back, so now there's a container shortage.
I was quoted over $20,000US to move a 40ft container from Dalin to Los Angeles on the spot market, considering it was about $1,750 for 40ft pre covid.
Brexit has indeed had some issues it never was going to be plain sailing, yes there's additional checks duties etc but that was to be expected in fact the RHA own poll in 2016 showed over 60% of companies favored leave.
The RHA published its own advice throughout 2017-2020 stating very clearly what was going on and what plans were afoot and also procedures / policies etc.
Unfortunately the companies that are mainly crying foul are the ones who didn't take notice or simply didn't prepare. (I had to dump 3 of my main contractors due to this)
Shortages on the whole were not unique to the UK, the USA, Canada, Australia and even Italy to name a few suffered major shortages (Italy actually addressed the UN on it) so while I get that some people do just want to lay the blame for everything on Brexit the fact is Brexit is only one component.
You made a good point about customs, taxes and duties there catfish, just want to ask were you aware that every truck that left or entered the UK while we were in the EU still had to clear customs?
(Now we run under the T4 form which is what you would use in Norway or Switzerland, TIR is unaffected)
And also any truck that runs through France Germany Spain Italy, BENELUX and others have to pay duties and road taxes all this whilst we were in the EU?
(Just want to note the UK never charged foreign HGVs while in the UK or enforced cabotage like they did in the EU)
I get that some of this has hurt the smaller business and some people but its the bigger picture, freight rates have increased as have wages in the haulage industry which has meant some products are more expensive I fully get that, but the truck driver who hasn't seen a wage rise only a decrease over the last 25 years has seen his capability to live on the wage he earns increase.
This isn't unique to just the UK either there's been a lot of changes this side of the pond with NAFTA, immigration that has seen similar turn of events.
As for used vehicles and parts a 2016 1 million KM freightliner cascadia truck in 2021 you could pick up for $18,000 roughly at the peak when no one could get hold of any trucks (Canada / USA have around an 18 months back log of orders for new ones) that same truck would fetch $60,000.
As for parts you just had to hope and pray it was something they could repair or had in stock.
Some of the companies I use had trucks in work shops for 2 nearly 3 months waiting for parts, others who were lucky either had to send the part by road or fly it in from the other side of the continent, and your now also paying not only double for that part but the transport costs as well.
I am soon to start shipping over some personal items of mine, these are items I bought and paid tax on years ago in the UK, I already know I am going to have to pay Canadian tax and import duties on my own personal effects which in some cases will be more than what I paid for the item (cant get them here hence why I have to pay up).
The war in Ukraine has caused major shortages in grain, Ukraine is one of the bread baskets of the world and supplies a lot of grain to the EU, Canada is now shipping grain to Europe to make up the deficit which has lead to commodity price hikes and also shortages this end.
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Additionally almost all companies ride the wave of raising their prices, even if not affected at all. "Reasons" range from corona, market changes, delivery chains, China, Russia, Taiwan, Russia, war to "others do it too"
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Indeed and that is exactly what were seeing across the board right now.
Quote:
[sarcasm]
We can be sure that prices will go down again when the crises are over.
[/sarcasm]
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pre covid fuel prices here were $1.09.9, during covid that slumped to 0.69.9 at its highest it has reached $2.37.9 and today as I filled up in its sitting at $1.63.9 (each province is different AB is currently on $1.39.9 and it never exceeded $2) prices per liter.
I think it will go down but there will be a new norm higher than before all this started.