Massive floods worsen the supply chain crisis, Black Friday looms

  • Floods in parts of Western Europe and China are adding to supply chain delays.
  • Those floods damaged the railroads that were used to deliver goods, experts say.
  • Because of this, we might see fewer Black Friday deals as retailers raise their prices.

Floods in parts of Western Europe and China are adding to delays in the global supply chain, and one expert says it could be threatening

Black Friday

Germany, Austria and Belgium are among the Western European countries that have been hit by devastating floods in recent weeks. In China, the city of Zhengzhou rained for almost a year in just a few days.

In an interview with CNBC, Tim Huxley, chairman of Mandarin Shipping, said that floods damaged railroad lines used to deliver goods – “another major blow” to the supply chain.

Delays and shortages are likely to affect Black Friday deals and discounts as retailers raise prices to cover additional costs, Pawan Joshi, executive vice president of supply chain software company E2open, told CNBC.

“On Black Friday, we can likely expect prices to rise for all types of goods such as consumer electronics, furniture, clothing and home appliances,” said Joshi.

“Black Friday and the holiday season for which products (and raw materials) are staged will have the brunt of the impact,” he said.

Continue reading: Why the world is in a shipping crisis

Insider previously reported that bulky and inexpensive goods could be more prone to price increases as they take up more space in shipping containers and have lower margins to offset rising costs.

In an earlier interview with Bloomberg, Gary Grant, founder of UK toy store The Entertainer, said that in his 40 years in the industry he “has never seen such difficult pricing conditions.”

He said he had stopped selling certain items because of higher freight costs – he would have to double the price of a giant teddy bear imported from China to offset the cost of importing.

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