Tag Archives: innovation

Shadow inflation: Shipping costs are up way more than you think

This article gives lots of measures of factors contributing to supply chain cost. There are good graphs indicating the changes.

But these are contributing hidden costs to products, and those costs will be borne by consumers of the final products. That’s inflation.

It may be the first time that inflation is influenced by marine supply chain problems since the incessant wars on the seas in the 17th and 18th century. And in those days, frequent shooting wars guaranteed recessions; it was leisure goods like tea that had inflated prices. World Wars I and II also caused inflation, and shortages, but these were only partly caused by pillaging of marine traffic on the high seas. In most cases price controls were put into effect to resist inflation for ordinary people; and the extra goods were needed for the soldiers. We don’t have those now.

Somehow in the US and EU we need to find people to do the hard jobs in the supply chain to keep goods moving— warehouse jobs and driving jobs.

Greg Miller, Senior Editor Friday, October 22, 2021

Shadow inflation: Shipping costs are up way more than you think

Home Depot jumps onboard as Walmart launches third-party delivery cart

Rapid home delivery is a growing area of logistics competition in retail. Walmart has a quick delivery service, and has gotten Home Depot to participate.

One interesting fact in the article is that Home Depot and Walmart rank #3 and #1 respectively in container imports!!

By Ian Putzger, Americas Correspondent 08/10/2021

Home Depot jumps onboard as Walmart launches third-party delivery cart – The Loadstar

Shippers face tough choices in the US trucking market as costs escalate

It’s a good time for larger shippers to consider a dedicated fleet, according to this consultant. The driver shortage and inability for carriers and 3PLs to offer good schedules are making it hard to book a good service. It certainly throws cold water on trying to forge a long term (say, annual) contract with a carrier.

There are roadblocks in forming a dedicated fleet, too. Trucks are in short supply, due to the chip shortage among other things. and if you don’t have trucking logistics specialists now, you have to set up a whole logistics department, with knowledgeable dispatchers and logistics managers. Not all firms will be able to pull that off. So there are pluses and minuses for a dedicated fleet.

I think firms need to think strategically and decide where they need to be with their customers five or more years in the future. Then once a strategy is chosen, they need to commit the resources and money they need to get the new strategy up and running in a measurable way, so they can be sure service to customers is really improved, and economically for the firm.

By Ian Putzger, Americas correspondent 23/09/2021

Shippers face tough choices in the US trucking market as costs escalate – The Loadstar