Freight crisis – How Marinair deals with itMarinair
From 2017 to today it is estimated that freight rates have dramatically increased around the world.
Freight rates have increased significantly over the past six months, and as the year goes on they are going to continue to rise.
Many factors contribute to why transportation costs have been increasing. The shipping industry is experiencing a tight capacity market, which means there is strong freight demand, but a low supply of drivers and carriers.
Powerful and damaging weather can also cause freight rates to spike. For example, the hurricanes this past fall took a toll on carriers’ networks due to massive road closures and hazardous conditions.
But how companies can handle these increases?
Companies should start by evaluating their shipping needs. They need to be flexible with their delivery dates and warehouse hours. If shipments can be broken down into multiple loads companies can try shipping as LTL instead of FTL. Or sometimes companies should wait for a full truckload before shipping their products; companies need to evaluate options to see what is the most cost-effective to them.
Consequently, at Marinair we are also dealing with increasing transportation costs. That’s why we aim to provide our customers with alternatives in order for them to get the best possible deal!