How Supply Chains Affect Material Prices

Actually, brilliant time to talk about import and supply chain realities and why prices are what they are right now.

So it's a brilliant time to talk about that and what affects pricing and how pricing structures work, why sometimes you might get a quote for a job and six months later that dramatically changes.

So since we've actually... been running the business there's been a challenge every year it seems to come hard and fast since covid so do you just want to go it's all right you get comfy and you get comfy so at the minute the shipping price is incredibly high so and did you just want to break down where we're finding current problems and why we're finding current problems

yep world events are unreal and um the real life factored into pricing of a lot of materials but especially with our type of paving materials which come from india subcontinent quite a lot of them um the shipping rates have a massive effect on uh the prices to be quite honest um Whereas you are talking heavy product.

It hits heavy product much more than lighter product, doesn't it? It does, yeah.

The

volume that you actually get within the container.

We ship in 20-foot containers because it's heavy materials.

We ship approximately just over 500 square meters per container.

So if we are shipping and the rates are what we deem reasonable, shipping is always done in U.S. dollars.

And, you know, current prices are, well, I'll use the word ridiculous.

They're over $5,000 per container.

And that's come down.

And that's come down from where it was in, you know, a couple of weeks ago, you know, over $6,000 it was.

In what we describe as normal times, you can be around about $1,000 to $1,500.

So that differential in price in there, split over your 500 square meters, is a massive impact on what your actual costs are.

And it can be a lot.

Currently, our cost to ship the material is probably more than what it is to actually procure it from our suppliers.

Yeah.

I think you don't think that either.

It's like when you buy something, like I do the same, you know, like when you go into the supermarket and you pick your blueberries up and you're like, why have the blueberries gone up? But when you actually think about the blueberries journey and where they've actually come from, they generally haven't come from down the road.

And shipping is always such a huge element in it.

And the unfortunate thing is that... with shipping, it is controlled by a few people and there's nothing you can do about it.

Do what they want.

Do what they want.