Parker House Furniture is ‘looking closely’ at possibility of lowering ocean freight surcharge again

EASTVALE, Calif. — Parker House implemented a significant reduction in its ocean freight surcharge in June, citing falling container costs.

“Demand has slowed significantly, especially since the second half of last year,” COO Doug Townsend told Furniture Today at the time. “Factories are shipping things that were ordered nine months ago. There’s a tsunami of inventory out there.

Now Townsend said the company is considering further reducing the surcharge. “Shipping container rates are down 35% to 40% from last Q4 and Q1,” he said. “They have been slowly and steadily declining since the Chinese New Year.

“We are looking closely at the possibility of reducing the surcharge again.”

According to shipping analyst Drewry, shipping container rates are down 38% from last September’s peak of $10,377.

Parker House imports from Vietnam to Long Beach. The company provides furniture for the living room, dining room, entertainment, office and library categories.

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Robert Dalheim, editor of Case Goods and Global Sourcing, has been writing about the woodworking industry and business news since 2015. He graduated from Northern Illinois University with degrees in journalism and political science. Contact Bobby at [email protected] or by calling (336) 605-3815.

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