Rising truck freight rates and diesel prices are causing trucking companies to shut down, which in turn tightens shipper capacity. It is most likely this trend will continue in the coming years. Although these rising costs paint a bleak picture for the future, the August 2008 issue of The Kiplinger Letter reports that businesses are taking the following actions to help offset the negative:
- Companies are negotiating multi-year shipping contracts now. The rates might not seem like a bargain today, but down the road, they will prove a good deal.
- Manufacturers and retailers are cutting cost by looking stateside rather than overseas for production materials. With ocean freight costs adding approximately 10% duty to goods imported from China, “Made in America” is looking much more inviting.
- Companies such as Crown Battery, Volkswagen, and Ikea are increasing production at their U.S. facilities, in addition to building new plants in the states.
- More and more food retailers are stocking their shelves with fruits and vegetables from local producers rather than from overseas suppliers.
Fuel costs might be on the rise, but let’s look at the positive–it is once again making “Made in America” common household words.
Another positive–HG Logistics LLC is available to handle all your shipping needs helping your company to be more viable and productive in this tightening economy. HG Logistics LLC, a third party logistics company located in Cincinnati, Ohio, services all 48 states as well as Mexico and Canada. Contact us today at 1-877-574-4744.