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Li-ion Batteries from China


paulears

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I reordered some radios today - I buy them in either 3's or 5's and they sell for £250 - with one battery pack which is a user replaceable cell pack - it comes with 4 cells normally, but the pack can be opened up and different capacity cells put in if the owner wishes. The factory asked if I'd be willing to have empty battery packs this time and source them locally, but that's pretty expensive. It seems the courier - which I think is Fedex (not UPS) won't take radios with cells in battery packs. They will take hard wired li-ion packs but not these ones. I spent a fruitless half an hour trying to see if I could buy li-ion cells from another of my suppliers, but they've removed them from sale suddenly.

 

I know they're risky, but the freight prices from China are getting crazy too. The price depends on volume as well as weight, and for larger and heavier stuff, I'd buy space in a container from a freight forwarder. 18 months ago - a full container was around £1600 to Felixstowe, It is now nearly £6000, so I've been getting the heavier items via land freight. There is Air freight, Sea freight and now you can do it by train! Bizarre watching packages going through Russia, eventually into Hungary, then through to us - but it's amazingly slow, but is a little cheaper.

 

Some cheap lights now cost more for the freight than the product. 3 radios ordered today were $150 for the freight. It is getting silly. As so much, including big name products come from China, expect some hefty price rises once the new kit is in the system.

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We are seeing containers rise to $9000 dollars on some China routes - not industry related as its in my day job - but landed in the UK that is nearly £28 extra on a product that currently does ok volumes at a retail of around £100 with 40% or so margin - we can't take the loss of margin on the extra and the customer may not stomach a 25% price increase, so volumes will drop.

 

We have factory commitments that are in production - can delay next phase but we are also ending up with costs to store what is produced already in the far east (although cheaper than UK storage admittedly).

 

We either pay the prices or someone else will - versus not having stock for season launch or it being late to market.

 

This will ultimately affect our direct competitors as well but is another challenge we don't need in retail, but at least we are still taking some money unlike other sectors.

 

Seems that the import bubble is slowly leaking for many reasons.

 

That article was a good read and mirrors exactly what we are seeing / hearing.

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The battery issue is because of the sub-contracting nature of global freight - even a global company like Fedex sub-contract a surprising amount. Some sub contractors have a no Li-ion policy, others are fine with it. According to our freight co because of the reduction in global freight capacity companies are playing it safe by refusing to carry certain goods so that they can use ANY of the sub-contractor options that become available rather than having to find 2 suppliers.
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...one battery pack which is a user replaceable cell pack - it comes with 4 cells normally, but the pack can be opened up and different capacity cells put in if the owner wishes...

 

 

How are the packs shipped. In the same product box as the radio or in a separate product box?

 

There are two different UN Classifications depending on how they are shipped...

 

Class 9 – UN3480 – Lithium ion batteries – Batteries that are not packed with or installed with the equipment.

 

Class 9 – UN3481 – Lithium ion batteries contained in or packed with the equipment, but not attached to the source.

 

Class 9 – UN3481 – Lithium ion batteries contained in or packed with the equipment, installed / integrated at the source.

 

...where 'packed with' means in the same product packaging, not the same shipping box.

 

UN3480 is sometimes seen as the more hazardous.

 

I found this regarding DHL...

 

https://www.dhl.com/content/dam/downloads/g0/express/shipping/lithium_batteries/lithium_batteries_interactive_tool.pdf

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The radio is in a Peli-style case with radio, battery pack with 4 cells inside, and the paower supply all ni separate sections of the case, so I think UN3481 applies. I wonder what has changed that it's suddenly become a problem. All my other radios have no-replaceable cells in the packs - as in soldered and sealed. This one opens up and has 4 cutouts in a rubber block where the cells pop in - not the usual touch each other, and end to end with spring and prong approach - 4 purpose made holes the batteries push into. Closing the case provides the link between them with the contact to put them in series moulded into the screw on lid.
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Seems that the import bubble is slowly leaking for many reasons.

 

Over ten years ago now I covered an ethical trading conference in the rag trade and one of the keynote speakers made the point that exporting production had been a) more trouble free than it might have been and b) cheaper than expected but they warned it couldn't go on without some sort of hiccough especially they thought in the logistics. I don't know exactly when it was but I think it was just before Matel were caught out over lead paint just before Toy Fair. I must admit I had no idea until then just how finely balanced the container system was and the very severe limitations of handling at some ports. Since then at the back of mind has always been the thought that ordering an item from China and having at all in for not much more than the price of a large letter here simply couldn't go on.

Edited by Junior8
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Because the container shipping trade was dominated by huge government-controlled (& presumably heavily subsidised) Chinese companies all the other players were running on very tight margins just to survive, so freight costs were incredibly cheap, but it couldn't last for ever.
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