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Trucking and other transportation costs are up, thanks in part to the war in the Middle East. As a result, business owners are strategizing on whether to absorb those higher costs or pass them on to their customers.
Ultimately, the increase in the cost of shipping a container across an ocean will be passed along to consumers.
Businesses are passing costs on to customers, consolidating packages and, in some cases, taking shipping into their own hands.
Supply chain disruptions and rising shipping costs are making difficult jobs even harder, said Save the Children U.S. CEO Janti Soeripto.
Slower demand for imports combined with a greater supply of ships means lower shipping costs overall.
The increased risk from conflict in the Middle East carries a premium.
Carriers are figuring out how to reduce risk and deal with disruptions caused by the Houthis’ attacks and low water levels in shipping lanes.
Firms that import goods are returning to pandemic-era strategies to brace their businesses against delays and higher shipping costs.
Shipping companies need to cover their higher costs, but there’s a limit to how much they can pass on to customers.
“We actually love the physical retail experience,” says Chris Capizzi, who co-owns A Good Used Book with his wife, Jenny Yang.
