Consumer Prices Include the Cost of Necessary Shipping Methods
Christmas in July has kind of a strange but familiar ring to it, but the fact of the matter is if stores across the country did not begin planning for Christmas until July they would not have the merchandise that they need once the holidays arrive. In fact, with the number of shipments that come to American consumers from across the seas, the planning for next year’s Christmas is far more than 12 months in the making.
Especially for toy stores and large retailers that one to carry what is expected to be the hottest selling items, it is important to make sure that orders are placed sometimes 18 to 24 months in advance. The only way to make sure that the production and delivery costs are affordable is to place orders months in advance. And that saying about the slow boat from China is only a light exaggeration when it comes to the most affordable way to ship the items that are wanted.
Truckload Freight Costs Drive the Price That Consumers Pay for Everything from Food to Fashion
Expedited freight services are fast, but they add to the cost that a consumer pays. Far more economical are the standard
truckload freight delivery prices that accompany items that are ordered well in advance. From pharmaceutical logistics solutions to trade show logistics, there is an entire industry that is built around making sure that consumers and retailers alike have the items they need when they want them. Consider some of these facts and figures about the complicated web of standard rate truckload freight platforms, less than truckload (LTL) services, and other specialty freight providers that play not only an important role in the prices that consumers pay, but also in the economy of the entire nation:
- Moving goods over the transportation network requires nearly 12 million trucks, rail cars, locomotives, and vessels.
- Approximately 5.9 million commercial motor vehicle drivers operate in the U.S., according to the Federal Motor Carrier Safety Administration.
- $35 billion is the estimated value of the LTL market.
- Machinery, electronics and motorized vehicles are the three most valuable commodities moved by the U.S. freight transportation system.
- With the latest advancements in technology and tracking systems, the overall length of haul has declined, according to Satish Jindel, president of SJ Consulting Group. In fact, public truckload carriers report that the average length of haul decreased 4% between the year 2011 and the year 2016.
- The value of freight moved is expected to increase from $882 per ton in 2007 to $1,377 per ton in 2040, according to the U.S. Department of Transportation.
It may only be June, but you might not be surprised to know that there are logistics officers who are already making plans for not only this Christmas, but the following one. From the short freight arrival time of fresh fruits to the months of planning it takes to keep non perishables in stock, the shipping industry is a complex network that works to meet the needs of consumers across the world.