Industry heavyweight shares his take on the direction shipping is moving.
In an informal sit-down with the TOTALogistix executive team recently, the vice president of global logistics for a major athletic products retailer shared his thoughts on where transportation is headed. With product sourcing throughout the world, a nationwide chain of retail outlets, and direct B to C shipments, this industry power player (and TOTALogistix client) oversees a vast and far-flung supply chain. Here are some of his observations and predictions:
Overall, shipping rates have nowhere to go but up. With excess capacity squeezed out, and many truckload and LTL carriers having gone under, increased shipping volume as the economy improves will create a classic supply crunch.
Parcel carriers are attempting to “bring sanity back to the market,” which from the Brown and Purple point of view, means imposing aggressive rate increases to make up for an inability to raise prices during the downturn.
Ocean rates are seeing some of the steepest increases. Container-loads, from Shanghai to Long Beach for example, have seen prices more than double from where they were in the depths of the recession, with further bumps likely.
The bottom line for shippers? With prices heading north, it’s more important than ever to streamline your supply chain.
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