Stay Afloat Amid Rising Fuel and Shipping Costs

Inflation is wreaking havoc throughout countries all over the world. The price of everything seems to go up steadily these days, and fuel is no exception. As of March 2022, US retail prices had increased more than 60 percent in one year. The fuel price increase also drives various other increases as shipping goods becomes more expensive as a result.

How Fuel and Oil Price Surges Affect Logistics 

The rise in product and shipping costs has many manufacturers scrambling to find the right balance between supply and demand. At the same time, retailers struggle to remain profitable in their increasingly competitive markets. Increasing production and logistics costs results in a higher selling price that affects the end consumer. 

Transport costs can be high. Shipping products from one country to another - and even from one state to another - can add a lot to the price. 

The logistics sector is heavily affected by economic trends. In response to the current crisis, delivery companies will likely need to cut costs and may even have to close some locations—a move that will likely result in fewer deliveries. This is necessary to cover the cost of transporting the goods in the first place. Time-sensitive deliveries such as items needing refrigeration may see even higher increases in their shipping fees. 

You’ll also see deliveries coming less often. Some companies may even have to reduce the locations where they offer shipping. 

This is unfortunate but also necessary. Certain far-away locations just aren’t worth it anymore, especially if they are delivering minimal goods. If they do stay in the area, you may see an even greater LTL fuel surcharge. 

How to Minimize the Brunt of High Prices 

Fuel price is a common concern for companies shipping products worldwide, as rising costs are challenging to address. By employing some strategies, you can address these issues and avoid many pitfalls with rising ship fuel prices. 

Re-strategize 

Ensure you review your current workflow and shipping platforms. Are you partnering with a shipping platform that provides you with low shipping rates? Consider partnering with platforms that offer a wide range of carriers that can help you pick your best option in terms of price and delivery times and services. Working with a multi-carrier shipping strategy allows you to reduce your shipping costs and choose shipping carriers based on your product needs. 

Increase Lead Time 

When shipping on short notice, you will usually pay a premium price. You can lock in the best possible rate by offering at least a 24-hour lead time. The longer you provide advance notice, the better your rate will be. 

Be Flexible 

While it is essential to have truck preferences and set pick-up times, a little flexibility can prove valuable. Especially with limited resources, allowing an alternate truck or a wider pick-up window can be a wise choice. 

The Benefits of Partnering with Freight Club 

Freight Club is a leading end-to-end freight shipping platform that helps retailers effortlessly manage everything from booking and tracking to complete claims management and secondary insurance protection. 

We are committed to providing our clients with the best-in-class support to enable their success even in these challenging times. Our promise of providing consistently low shipping rates remains unfazed by global challenges. Get in touch with us today and learn more about how we can help you get the best rates for your business!