As of Wednesday, the national average for a gallon of regular gasoline was $2.64, according to AAA. That’s $1.03 cheaper than it was exactly one year ago. Still, prices at the pump have been on a steady incline lately, rising 21 days in a row.
The result is usually an increase in shipping costs that can negatively impact your business. A conjunction of factors and economic developments lies behind rising transportation costs. At the center of today’s transport challenges are oil prices. Freight movement in most modes remains largely dependent on ever-more expensive and finite fossil fuels, primarily diesel fuel. According to the U.S. Energy Information Administration, the price of crude oil is the dominant factor influencing changes in diesel prices.
What can be done to combat these increases shipping costs? Many companies are revising package and product designs to reduce weight and increase shipment density. For instance, some have reformulated such products as laundry detergent, dish washing liquid, dairy powder, and fruit juice to make them concentrated and physically more compact. Some manufacturers have redesigned rolled consumer products like aluminum foil and toilet paper so that the cardboard tube in the center is smaller, or they have even eliminated the tube altogether.
Supply chain impact: This “don’t ship air, don’t ship water” approach to package and product design helps to reduce shipping weight, size, and materials while maintaining the products’ appeal and convenience for consumers. These changes translate into savings in freight costs, packaging costs, and space utilization. And while this may help in many instances now may be the time to think of switching your carrier. Call United Delivery Service and let us help you save money in shipping costs for the balance of the year! http://www.uniteddeliveryservice.com