Model railway maker Hornby has reported that shipping costs have dropped – a sign that supply chain tensions are easing as the economy slows.
Last year, Hornby had a bleak Christmas – supply chain problems meant that products only arrived after the Christmas trading period.
Lyndon Davies, Hornby executive chairman, says the company is in a stronger position this year.
“The situation has now greatly eased and shipments from our factories are 40% ahead of last year.
“We are still suffering with late departure dates, however, as the shipping industry trims capacity by cancelling sailings. Despite this, although costs are not back to pre-Covid levels, container rates continue to fall.
“We have also mitigated potential supply disruptions this Christmas by bringing forward the shipping dates on key product lines, which are already available in our warehouse.”
Hornby could use a good Christmas. It made a pre-tax loss of £2.9m in the six months to 30 September, compared with a £700,000 loss a year earlier, leaving it with net debt of almost £5m.