A man looks at a destroyed railway track along the river Ahr in Dernau near Bad Neuenahr-Ahrweiler, western Germany, on July 22, 2021, days after heavy rain and floods caused major damage in the Ahr region.
CHRISTOF STACHE/AFP via Getty Images
  • Flooding in parts of Western Europe and China is adding to supply chain delays.
  • These floods have damaged railways used to deliver goods, experts say.
  • Because of this, we could see fewer Black Friday deals as retailers raise their prices.
  • For more stories go to www.BusinessInsider.co.za.

Flooding across parts of Western Europe and China is adding to delays in the global supply chain, and one expert says it could threaten Black Friday deals.

Germany, Austria, and Belgium are among the countries in Western Europe hit with devastating floods over the past few weeks. In China, the city of Zhengzhou received nearly a year's worth of rainfall in just a few days.

In an interview with CNBC, Tim Huxley, chairman of shipping company Mandarin Shipping, said floods had damaged railway lines used to deliver goods - "another body blow" to the supply chain.

Delays and shortages are likely to have an impact on Black Friday deals and discounts because retailers will raise prices to cover extra costs, Pawan Joshi, executive vice president of supply chain software firm E2open, told CNBC.

"Come Black Friday, we can likely expect to see prices rise for all sorts of goods such as consumer electronics, furniture, apparel and appliances," Joshi said.

"Black Friday and the holiday season, for which products (and raw materials) are being staged, will face the brunt of the impact," he said.

Insider previously reported that bulky and low-cost goods could be more vulnerable to price hikes because they take up more space on shipping containers, and have smaller margins to absorb rising costs.

In a previous conversation with Bloomberg, Gary Grant, founder of UK toy shop The Entertainer, said that he has "never known such challenging conditions from the point of view of pricing" in his 40 years in the industry.

He had stopped selling certain items because of higher freight costs - he'd have to double the price of a giant teddy bear imported from China to make up for import costs, he said.


Get the best of our site emailed to you every weekday.


Go to the Business Insider front page for more stories.