You’ve likely heard the recent discussion around timber price and shipping issues which has been a growing concern for the construction industry and home builders around the world. A significant increase in demand for building products has put pressures on supply, which has led to timber prices climbing steeply.
This has been largely due to the pandemic, which has caused havoc and disrupted life and the economy worldwide. As a result, the following factors are impacting YZY Kit Homes price and supply:
- Global construction boom: many governments (including Australia’s) have offered incentives to build and renovate in a bid to boost the economy, resulting in a jump in demand.
- Shipping container shortage: a chain reaction of reduced activity, a spike in demand for exports and an inability to return empty containers in a timely manner is impacting supply.
- New international fees and port charges: to cope with delays, demand and other challenges, there have been price hikes on existing shipping and port fees and new charges introduced.
These factors combined, have led to lumbar prices reaching record highs, and pushing timber prices up to unprecedented levels.
At YZY Kit Homes, we’ve been working hard behind the scenes to improve efficiencies in a bid to absorb the continued price increases for as long as possible. Our number one priority is to minimise the impact on our customers in what we know are difficult times for many. However, with the cost of timber and shipping continuing to climb, we have reached a point where we will need to adjust our pricing accordingly. So if you are considering building a cabin or granny flat, we encourage you to get your order in as soon as possible to beat the price rise.
Rest assured, any adjustments to our pricing will be kept to an absolute minimum. For enquiries on the current pricing of backyard cabins and granny flats, contact your nearest YZY builder who are always happy to help.
We greatly appreciate your continued support through this time of change. We are 100% committed to providing superior, quality products and continuing to build beautiful and energy efficient cabins and granny flats for customers across Australia.
Source:
- ICE (10 March 2021) ‘The Shipping Industry Chaos Unveiled: What is Really Going On In Australia and Across the World?’, International Cargo Express, accessed 11 October 2021.
- Savvides N (5 August 2021) ‘FMC responds to shipper complaints with probe into shipping surcharges‘, The Load Star News, accesses 11 October 2021.
- Brann M (15 May 2021) ‘Global construction boom sending timber and iron ore prices through the roof’, ABC News, accessed 19 June 2021.
- Farley A (22 March 2021) ‘Australia shipping and trade insights: What is really going on down under?’, Global Trade Mag, accessed 19 June 2021.
- Lannin S (11 Mar 2021) ‘Trucking at Australian container ports are surging and consumers may foot the bill’, ABC News, accessed 19 June 2021.
- Powell D (5 May 2021) ‘Soaring timber prices put pressure on Bunnings, but thrill Reddit investors’, Sydney Morning Herald, accessed 19 June 2021.
The Shipping Industry disruption: Infographic
Shipping container shortage explained
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