Industry Update – October 2021

October 19, 2021

There have been major changes in shipping and production since our last update.  

Freight rates have gone up yet again. Since our last update on July 23rd, freight has increased by another $8,000 per container. This means that our per-container freight cost has increased more by than $23,000 since last Fall.    

From the production side, costs are also going up. Multiple suppliers have reported that issues acquiring the raw materials used to make fireworks has led factories to demand an increase in pricing.    

Despite the bad news, there is hope for the future. Suppliers are forecasting that freight rates are leveling off and may not increase for the rest of 2021. This is great news considering the multiple rate increases we have faced this year.    

We are also optimistic that the energy shortage in China may reduce production output in other industries and leave more room for fireworks on cargo ships this spring. Despite our cautious optimism, there is still limited room for hazmat cargo on each freighter, and Spring is the peak season for fireworks imports in the US. Still, any relief on the supply chain in the US will be welcome news for our industry as we head into 2022.    

Another bit of good news is that we have been fortunate to receive many containers from China since the 4th of July. We are well stocked going into the height of the New Year’s season to meet all your fireworks needs. To that end, we will be releasing over 50,000 cases on our website on Tuesday, Oct 19th. Regrettably, we will also be implementing a price change on Oct 19. The new prices will reflect the increased freight charges. The price change will not, however, include the anticipated factory price increases discussed above. We will continue to study how those production increases may ultimately affect the price of fireworks.    

It is our hope that fireworks freight and production prices will stabilize soon and that future price increases can be minimized and/or avoided altogether. To that end (and barring any unforeseen difficulties), we are securing the prices we are releasing on Tuesday, Oct 19th through the end of the year. We encourage you to take advantage of the current pricing.    

Check back regularly for updates, and sign up for our bi-weekly Webinar Wednesdays to see what is going on at Spirit of ’76.