Shipping container prices are on the rise again and retailers are reporting back orders from some leading vendors, even in a relatively slow market.
The cost of a container has gone from $2,500 to $7,000 in recent months, said many industry members, with one quoting a $10,000 figure.
“We’re paying $7 grand; we were paying a couple of grand for a container. We had to air in our new Harley radios. They got us for $30 a unit. And when you are airing in several thousand, it adds up,” said Ronnie Brashear of Epsilon.
The shipping price hikes are due, in part, to a shortage of the containers. Ships are at sea longer to avoid routes in the Red Sea, so fewer containers are readily available. The Red Sea disruption involves Houthi rebels who attacked 60 ships between October 2023 and March 2024, according to CNBC.
Perhaps as a result, some vendors are seeing spot product shortages.
Dave Wall of Freeman’s Car Stereo, NC said, “The supply chain seems a little funky right now. We had a good period of time with all our vendors but in the last 60 days, I’ve seen back order from multiple vendors.”
One supplier said, “I think manufacturers are bringing in less product. Usually they add to their forecast, so if they need 600 pieces they usually order 800, but now they are ordering 600. Especially with the volatility, prices could be lower in three weeks. I think people are now having to watch shipping rates weekly instead of monthly as in the past.”
Separately, the higher costs of shipping has not impacted pricing, and car radios saw lots of discounting in June and July. Some suppliers have been offering $200 to $250 discounts on higher end radios.
Brashear said some of Epsilon’s radio prices that were $499 two years ago are now $249 to $199.
Owner of Columbus Car Audio (OH), Todd Hays said, “Head unit prices have been on the decline and its seems like there’s more and more promotions coming from the vendors we do business with. They seem to be having specials way more regularly on that category [radios]. I feel like there’s more than in 2019.”
