Shipping prices have taken off, and everyone across continent are feeling its unsavory wrath. You do not have to be a B2B business owner to worry about the rising prices of transporting goods. A simple trip to the grocery store will tell you that times have changes; quite catastrophically, even the price of a chocolate bar has increased.
While the consequences are apparent, the underlying causes that drives the soaring shipping prices remain unnoticed by many. The distasteful series of events that lead to the inevitable price hike echoes its nondiscriminatory impact throughout the globe. Stream Logistics is here to illustrate a zoomed-out portrait of the very mechanisms that directly influenced the spike in shipping prices, as well as what it means for the global economy.
The Prices associated with Transportation Trucks Are Increasing
Do you know how goods are moved over road? That’s right, trucks. Do you know how large goods are moved over land? Even bigger trucks! Regardless of how far apart the importer or exporter is located, they will at some point have to move the goods over land. For example, transporting items in and out of warehouses and all the way to a port.
In recent times, the price of moving items across land has gone up drastically. It is principal to consider that your shipping bill is essentially a sum of all transportation costs, including land transport. This is bad news for logistics companies, since an increase in shipping prices is compulsory in order to compensate for the increasingly expensive process of moving goods over road.
Higher Fuel Costs Translates to Higher Trucking Rates
It is unfair to discuss the complex aftermath of an increase in trucking prices without mentioning the underlying culprit. The increase in fuel costs all around the globe have weighed down heavily on anyone who uses an automobile. A higher fuel price means the cost of land transport will soon follow. When it comes to heavy vehicles such as trucks, this effect is amplified many times due to fuel consumption. Trucking is a vital part of the economy, and the rising price of crossing a mile over road will inevitably lead to higher prices for goods and services that are transported by truck. Weighing in foreseeable states of affairs, this will be yet another example of how the rising cost of fuel will continue to affect everyone in North America.
What Effect Will Higher Trucking Rates Have on Retailers?
As the cost of trucking increases across the United States and Canada, retailers will be forced to either absorb the higher costs or pass them on to consumers in the form of higher prices. Retailers will most likely not be able to absorb the higher shipping costs into their profit margin, which will cause them to pass the increased price tag on to consumers. The higher price tags on their goods and services will attract fewer customers, which in turn will decrease their sales.
The effect of higher trucking rates on retailers will vary depending on the individual retailer, but it is likely that we will see a rise in prices across the board as companies attempt to offset their increased costs. This could lead to inflationary pressure in the economy and may put a strain on household budgets. It is important to monitor these trends closely so that you can adjust your budget accordingly.
How To Deal with Rising Trucking Costs?
If you’re a business that relies on shipping goods, you’re likely feeling the effects of these higher prices. But nevertheless, with some creativity, there are things you can do to offset the cost increases. Here are a few tips:
- Shop around for shipping providers. Not all companies are increasing their rates at the same rate, so it’s important to compare prices and find the most competitive option.
- Consider alternative shipping methods. If your goods can be shipped via rail or water instead of truck, you may be able to save some money.
- Negotiate with your shipping provider. If you have a good relationship with your trucking company, they may be willing to work with you on rates.
- Use fuel-efficient vehicles. If you have your own fleet of trucks, make sure they’re as fuel-efficient as possible to save on costs
What shipping company should I pick to have my goods transported?
Picking a good shipping company is compulsory when moving goods that are worth hundreds or thousands of dollars. While cutting costs is important, there are plenty of other aspects to consider when having your goods delivered. Stream Logistics has maintained a great reputation throughout the years, irrespective of fuel costs. We strive to provide the same quality of services for as low of a price as possible to all our clients. If you require any goods transported within Canada, Stream Logistics is your safest, most cost-effective option.