HLG - Hallenstein Glasson

[Waltzing]

"an extra 50c per garment"

arnt most passenger jets that carry freight are parked up...and freight aircraft must be prebooked already.

freight out of china is being move back months. Apparently you can book a container but you wont get it for months and your shipment will just be sitting waiting for the next 3 containers and you wont know which one or shipping you will get.

BBC games importer was quote over X5 fold increase in freight

[BlackPeter]

"an extra 50c per garment"

arnt most passenger jets that carry freight are parked up...and freight aircraft must be prebooked already.

freight out of china is being move back months. Apparently you can book a container but you wont get it for months and your shipment will just be sitting waiting for the next 3 containers and you wont know which one or shipping you will get.

BBC games importer was quote over X5 fold increase in freight

Clearly - it might be better to own under these circumstances a freight company (e.g. MFT or FRE) rather than owning a company which needs to pay for freight to transport their goods ...

[Waltzing]

"(e.g. MFT or FRE) "

buy the freights is always a play when the global crisis arrive... 2 global crisis in 10 years...

retail therapy is probably still a trade for summer 2022.

[iceman]

Also worth pointing out that shipping costs on clothing is rather tiny per unit.

They've gone up by the same percentage as anything else, whatever unit you ship in

[iceman]

Yup - every importer (and exporter) is and will be affected until conditions normalize - and normalize there will because Economics 101 tells you that super profits in commodity markets (and freight is a commodity) do not last.

So it comes down to the pricing power and ability of the business to absorb and/or pass on cost increases.

Most of the listed retailers have showed that they can pass on the cost increases (HLG, WHS, BGP, MHJ to name 4). Likewise, car, machinery and building material importers.

So do your analysis and decide on your investments accordingly.

Totally agree. It will be important for the next couple of years to be invested in companies that are well managed and can pass on cost increases and at the moment I think the retailers still can. But shipping is a high risk area at the moment both with availability and pricing. Much more so than people were expecting even 4-5 months ago.

[LaserEyeKiwi]

They've gone up by the same percentage as anything else, whatever unit you ship in

I think you misunderstand - the “unit” here is the item of clothing. The point being that shipping costs per clothing item is small fraction of the cost of goods sold for HLG inventory. So in comparison to other larger/heavier retail goods being imported from China etc, the impact of shipping costs increases impacts HLG to a smaller degree.

eg shipping costs on a t-shirt doubling from 8c to 16c per unit is much easier to absorb vs say a oil column heater shipping cost doubling from $3 to $6.

[iceman]

I think you misunderstand - the “unit” here is the item of clothing. The point being that shipping costs per clothing item is small fraction of the cost of goods sold for HLG inventory. So in comparison to other larger/heavier retail goods being imported from China etc, the impact of shipping costs increases impacts HLG to a smaller degree.

eg shipping costs on a t-shirt doubling from 8c to 16c per unit is much easier to absorb vs say a oil column heater shipping cost doubling from $3 to $6.

No misunderstanding. It is obvious that a t-shirt costs less to ship than a kg of milk powder !!!
My point is shipping, both availability and pricing, is becoming a huge issue. In my industry we are just pleased if we can get containers at all.

[Waltzing]

"In my industry we are just pleased if we can get containers at all."

your on the front lines...its a worry...

OCR will go up and the disposable incomes will reduce..

[see weed]

Must try harder not to be a naughty dog posting links to sexy sections of website is bad dog behavior.

Here's a link to their most recent half year report though. Useful to reflect on that and ponder the full year outcome. http://nzx-prod-s7fsd7f98s.s3-websit...324/344977.pdf

Expecting next update in the next couple of weeks. Hopefully good one and more big div payouts.

[Beagle]

No misunderstanding. It is obvious that a t-shirt costs less to ship than a kg of milk powder !!!
My point is shipping, both availability and pricing, is becoming a huge issue. In my industry we are just pleased if we can get containers at all.

Refrigerated in your industry though, to be fair.