As business owners prepare for the holiday season, they factor in shipping costs, inflation.

RALEIGH, NC (WTVD) — On a Friday afternoon, business was brisk at a jewelry store in the Village District that was light years away.

“Our foot traffic here has been great,” said owner Shannon Joyce, who took over the business in early April.

Joyce said they had some relief from the drop in overseas shipping costs. According to data compiled by Statista, global container freight rates have fallen more than 60% year-on-year, according to Bloomberg Finance. 76% decreased At the cost of shipping a 40-foot container from Shanghai to Los Angeles.

“The savings will be passed on to consumers, but it will take some time. The statistics I’ve seen recently are that it takes six to nine months for companies like Costco or Target or Walmart that import a lot of goods. Connell Fullenkamp, ​​a professor of economics at Duke, says those costs are actually passed on.

Fullenkamp zeroed in on two reasons why the price has fallen significantly; Demand dropped and orders were cancelled.

“This is supposed to be the time of year when all the boats are scrambling to get all the merchandise into the United States for the holiday shopping season. So I think that’s the troubling news in this case, maybe that’s a sign. At least stores think it’s going to be a busy holiday season,” Fullenkamp said.

The National Retail Federation’s Holiday Sales It is expected to increase by 14.1 percent in 2021 compared to 2020, but rising inflation may temper expectations.

“Inflation really seems to be taking a serious bite out of people’s willingness to spend that extra amount on gifts and the like,” Fullenkamp explained.

OPEC’s announcement earlier this week that they will cut production has boosted energy prices, with AAA reporting a 14 cent increase this week in North Carolina.

“The situation with our very energy-efficient railroads is still very well supported and cluttered with having railcars where you need to move things very cheaply and efficiently. So I think trucking. Shipping, airfreight is going to be used more than ever before.” Fullenkamp said.

Joyce said they have been affected by the shortage of materials, particularly their boxes, which they are now paying a higher fee for delivery.

“Our biggest issue is making sure our people here in America have access to the goods and keep the prices low,” Joyce explained.

Still, she knows how to make a price change.

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She credits improved Covid measures with helping to get people back into stores.

“It was definitely important, especially with a lot of our jewelry. If it’s a certain stone, the color can be different. So, it’s great for people to come in and touch it and see it,” Joyce said.

The Bureau of Labor Statistics released its monthly jobs report on Friday, showing that nationally, unemployment fell to 3.5%, and manufacturing output returned to pre-pandemic levels.