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Freight Shipping Costs Surge

Small businesses have been navigating as freight shipping costs surge drastically by finding deals to ship their freight at the best price.

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Freight Shipping Costs Surge

The logistics industry is heavily tied to economics. Disruptions in the global economy also affect the supply chain in some capacity. Some disruptions can be positive, such as higher wages leading to higher consumer demand. However, they can also be negative, like when there’s a shortage of raw materials like wood, leading to manufacturing and delivery delays.

Significant economic disruptions can lead to freight shipping costs going up. These surges can harm businesses, as eCommerce shops and brick-and-mortar retailers rely on the freight industry to deliver manufactured products and raw materials to meet customer demands. Luckily, business owners can get around these surges by using third-party logistics providers (3PLs), who leverage their relationships with their carrier network to offer lower shipping rates.

Let’s explore some causes for the freight shipping costs surge and find out how relying on a 3PL like FreightCenter can help you find discounted rates that don’t sacrifice quality.

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Why Choose FreightCenter for Freight Shipping?

Expertise in Freight Shipping: With over 25 years in the logistics industry, FreightCenter is dedicated to guiding you through the entire logistics process, from beginning to end. Our goal is to make freight shipping easy to understand and book. Don’t waste time researching and receiving quotes from individual carriers- FreightCenter’s got your back!

Competitive Rates with Tailored Solutions: We prioritize high-quality customer service without breaking your wallet. We utilize our relationships with regional and national carriers to offer you competitive, affordable rates while providing personalized solutions to your needs. Need a liftgate? We got you! Want to expedite your order? Leave it to us! We’re ready to provide tailored solutions that don’t compromise your freight shipment.

Personalized Customer Support: FreightCenter is committed to satisfying our customers. Our friendly customer support team is here to help you every step of the way, from initial inquiries to post-shipment concerns. We handle all aspects of logistics, including tracking, paperwork, and communication with carriers, so you can focus on your business while we manage your shipment. Choose us for our reliable service and affordable quotes!

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Freight Shipping Costs Surge Causes

The cost of shipping freight increases whenever there are dramatic shifts within the logistics industry or on the global stage. But what are those disruptions, and why do they raise shipping costs?

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Delays

Nothing slows the supply chain to a snail’s pace like a shipping delay. Setbacks during freight shipping can happen anytime, from the manufacturing stage to the final mile. There are multiple ways freight shipping can be delayed, including:

  • Severe weather
  • Malfunction in a mode of transportation (ship, train, truck, plane)
  • Thefts or losses
  • Human error
  • Operational hiccups at terminals or warehouses
  • Union strikes

 

When a manufacturer or carrier cannot guarantee a commodity will reach their customers in time, they will issue a delay. These delays impact a customer’s experience. Many will understand if the delays are unavoidable, but long, frequent, or preventable delays will sour the customer to the shipping company or broker, leading them to search for alternatives and hurting a business’s bottom line.

 

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Supplies/Raw Material Shortages

It’s impossible to ship a product if it is unfinished, especially if the manufacturer runs out of critical material. Shortages are a headache for businesses trying to keep up with inventory levels. If you don’t have all the right ingredients, how can you finish your products on time? It also may take a long time for a material to resurface, causing shipping delays and dissatisfied customers.

This doesn’t just extend to manufacturing, however. Shipping containers at ports may take a long time to be unloaded from the dock, which leaves other docks and companies relying on these containers without anything to ship their products in. Companies must also pay a monthly fee for their container’s stay at a port or on a docked boat at sea, which can get hefty depending on how long it stays for.

How Do Rising Fuel Costs Affect Logistics?

Supplies/Raw Material Price Surge

Shortages may cause prices for those supplies to go up. However, even if raw materials and supplies are readily available for a manufacturer, they may be overpriced due to inflation or another economic circumstance. Just as freight shipping costs can increase, essential supplies can also experience surges in pricing. Some materials that have experienced price hikes in the last several years include:

  • Gas/Oil
  • Wood
  • Steel
  • Certain foods like avocados
  • Processing chips
  • Plastic

 

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World Events

Lastly, emergencies significantly affect freight costs. Major world events that could affect freight shipping costs include:

  • Wars
  • Pandemics
  • Recessions/economic crashes
  • Riots and strikes
  • Severe weather events

 

Suppliers will stop the production of materials and manufactured products to divert efforts toward immediate needs. Lower-priority items, like luxury or entertainment items, will experience delays or shortages during the emergency. Carriers will also be redirected toward transporting emergency supplies instead of their usual loads; any drivers who take on lower-priority loads will upcharge their rates as a result.

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Frequently Asked Questions about Freight Shipping Costs Surge

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Q. What do freight shipping costs surge?

A.

The economy influences freight shipping costs. Shortages, delays, or major events can prevent manufacturers or suppliers from shipping essential commodities.

These events can also affect carriers, leading to a lack of drivers or a slower travel time that causes delays. These consequences will lead carriers and brokers to increase their rates, causing freight shipping costs to surge.

Q. How do I avoid having to pay surged freight shipping costs?

A.

Surged freight shipping costs can be challenging to avoid when the entire logistics industry is affected, but you can find lowered shipping rates through a 3PL. By leveraging their carrier network, 3PLs can offer discounted rates for their customers, even during unprecedented events. Take advantage of these deals to prevent your business from being caught up in a freight shipping costs surge.

Three Advantages of Using FreightCenter for Freight Shipping

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25+ Years of Service

We have over 25 years of experience, as evidenced by our large network of professional carriers. Our knowledgeable team of shipping experts is ready to help you optimize your shipping experience.

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Customizable Shipping Options

Need a liftgate? No problem! Need to ship your products quickly? We got you covered! Our FreightCenter agents can offer tailored solutions for your specific shipping needs while offering affordable rates you can’t find anywhere else.

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Friendly Customer Support

Our customer support team has the answers to many of your shipping questions and concerns. We’re here to help you through every step of the shipping process, from initial inquiries to post-shipment issues.

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