Cost inflation and the shipping bubble – how to come out on top

Cost inflation and the shipping bubble – how to come out on top

Thanks to a shipping bubble and large-scale cost inflation, right now is the ideal moment to optimize your packaging, shipping, labor, transportation and warehouse.

Why?

The simple answer: it’s alway wise to optimize, drive efficiencies and deliver cost savings with a good partner. But right now is the ideal moment as the market levels or even looks to turn.

Learn from the trucking recession

The demand for goods has exploded as the economy has recovered and expanded. A record strong recovery has happened on the back of the 2015 trucking recession. That recession meant layoffs and idle equipment. But the opposite is now the case. In the shipping world, record high demand for goods and shipping, has driven demand for vehicles and drivers sky high. That, added to rising fuel costs, continued general rate increases, higher dimensional charges and market instability is signaling a change in market direction.

All of this makes optimization of your packaging through rightsizing more vitally important to the health of your organization. You need to get more cost effective than ever before. Smaller packages translate directly to lower transportation spend and higher profits.

Get ahead of cost inflation – and the competition

Don’t be fooled by flatbed demand charts, the most accurate indicator is the Cass Freight Expenditures chart, which indicates that spending on shipping is still at an all-time high. And you know that prices won’t come down for quite a while after the true peak is found.

But don’t get complacent. Now is the time for action.

Do you want to keep paying higher prices to ship air? Wouldn’t you rather trim the fat now and drive higher returns while the market is still red hot? Not only does it make good business sense now, it will help make you much more recession proof for the next market downturn.

Seize initiative for change

Packaging, logistics, e-commerce, 3PL—these all tend to be boom and bust areas of business. But there is one thing that never goes out of fashion—a more efficient operation.

Seize the moment now, while initiative is high in your organization to outcompete your rivals. It will make you look like a genius when times get hard, as they always do, and you have already invested the small amount of time and resources needed to make it to the next boom cycle.

Contact us today to find out how we can help.