Most modern interior furnishings spends their early days in a giant box called a shipping container.
Shipping professionals call it a Box.
It's estimated that there are between 20 and 25 million Boxes in the world.
Here's how the Box System Works...When It Works
A rug maker in any country in the world packs rugs into a Box. When the Box is full the company calls a trucker who comes and picks up the fully loaded Box.
The trucker takes the Box to a train depot or to a dock where the Box is loaded either onto a train or a ship.
When the ship reaches its destination the Box is loaded on a truck, and the truck delivers the box of rugs to a designated addressee.
What a great system!
When it works.
What can go wrong?
Here's a list:
- With an easing pandemic, consumer demand is smoking hot; the system is overwhelmed
-
Trucks can’t roll because there is a shortage of drivers (Covid)
-
Boxes can’t get loaded or unloaded at the dock because of a shortage of stevedores (Covid)
-
Customs inspections have slowed way down (Covid?)
Bottlenecks and congestion flourish throughout the world.
Imports Processing Time Triples
Long time rug importer and import agent, Jeffrey Koehler, watches the situation as carefully as anyone.
“Port congestion continues and shows no sign of abating,” he said, “Three of the largest shipping ports in China are understaffed due to Covid. This creates a bottleneck, both inbound and outbound. U.S. ports are similarly congested. Our time for processing imports has basically tripled over the last 18 months.
"In 2019, total transit time for sea shipments from India to the U.S. was 6 to 8 weeks. In 2021, it has grown to 12 to 14 weeks.”
All of us have experienced the results: later deliveries and rising prices.
Shortages Breed Price Hikes
Shippers can't ship because there's a shortage of Boxes at their location. Shippers become more and more desperate for sales income so they start bidding up the cost of shipping in the hope of finding Boxes to get their goods delivered and paid for.
One importer from the middle east told us that his container shipping costs have quadrupled.
Another said the rate is five times higher for containers heading out of the weaving countries.
Manufacturers bid up the cost of raw materials because they have orders that they cannot afford to lose.
The results are jaw-dropping price increases.
Rugs by Their Nature Require Long Lead Times
Handmade rugs take a long time to make under the best of circumstances. Long lead times are the rule, no exceptions.
A medium to high-end rug requires about three days to weave one square foot. There are 108 sq. ft. in a 9 x 12 rug. It will reasonable take just over a year to build one.
Weavers are highly skilled and take time to train. Many have been out with Covid and are hard to replace.
“Production of hand-knotted rugs is time consuming and difficult to speed up and catch up for lost time,” said importer Jeffrey Koehler. “It takes time to train new weavers — hand knotting is a skill, an art, and mills cannot bring new weavers online quickly.”
The Outlook - At Least Six More Months of Long Lead Times
Happily, production levels at rug weavers have risen back to pre-Covid levels. Weavers are shipping more than they were six months ago.
However transit issues are still thwarting shipping and will be a burden on deliveries for quite a while yet.
“Since there is no anticipated significant improvement in shipping / ports / Customs foreseen in the next 6 months, lead times will likely not decrease much until at least 6 months from now,” said Koehler.
Closeouts
Tampa
NOE03
ENCORE COLLECTION
CHOCOLATE MINT
7'9 X9'9
DESIGNER NET $1593
CLOSE OUT $350
NOE03-CHOMT
DETAIL
Orlando
88-KIM-5
SARA #06903 KIMAYA
GRAY
9.01X11.09
DEIGNER NET $2,561.52
CLOSEOUT $750.00
AMR #129859
SHIBORI BLUE
8X11
DESIGNER NET $1056
CLOSEOUT $350
Addison/Dicus & Bailey Close Out Policy
The best way to find out about our latest closeout is to subscribe to our newsletter.
You must have an account with Addison/Dicus & Bailey to buy one of these rugs.
The closeout offers will begin when we send the newsletter between the 20th and 30th of each month and last for 30 days.
No returns. No showings in homes.
Rugs can be picked up at the showroom, or we can arrange for home delivery and set up for an extra charge.
These are individual pieces in one size in one color.
First come, first serve.
Don't worry about storage wrinkles. We will steam them out.
Closeouts
Tampa
NOE03-CHOMT
ENCORE COLLECTION
CHOCOLATE MINT
7'9 X9'9
DESIGNER NET $1593
CLOSE OUT $350
NOE03-CHOMT
DETAIL
Orlando
88-KIM-5
SARA #06903 KIMAYA
GRAY
9.01X11.09
DEIGNER NET $2,561.52
CLOSEOUT $750.00
AMR #129859
SHIBORI BLUE
8X11
DESIGNER NET $1056
CLOSEOUT $350
Addison/Dicus & Bailey Close Out Policy
The best way to find out about our latest closeout is to subscribe to our newsletter.
You must have an account with Addison/Dicus & Bailey to buy one of these rugs.
The closeout offers will begin when we send the newsletter between the 20th and 30th of each month and last for 30 days.
No returns. No showings in homes.
Rugs can be picked up at the showroom, or we can arrange for home delivery and set up for an extra charge.
These are individual pieces in one size in one color.
First come, first serve.
Don't worry about storage wrinkles. We will steam them out.