Fuel for Thought
Undoubtedly, factoring freight costs and managing logistics is one of the most interesting aspects of merchandising. In an ever-streamlining world, where production lines are more efficient, timely shipments have become crucial for manufacturers.
Every season Mother Nature “keeps us on our toes” with weather events, which always have freight ramifications; i.e. bulk hopper trucks disappear when there is a need to haul salt for snowy roads or sand to aid in flood recovery efforts.
Produce season is all the buzz right now. We are about to see in-bound rates to Florida and California being about as good as they get. Simultaneously, outbound rates from these areas will likely be through the proverbial roof. Demand creates higher fuel rates. Per the infographic below (U.S. Energy Information Administration) it’s easy to see the rising costs directly associated with produce season.
The good news is, everything has a time and a season. Rates will be higher through the summer, and then normalize until the next variable arises; foreseen or not.