The increase in gas prices led to an increase in shipping costs, in addition to fuel surcharges for deliveries. Along the China-EU shipping lane,: “Transporting a 40-foot steel container of cargo by sea from Shanghai to Rotterdam now costs a record $10,522, a whopping 547% higher than the seasonal average over the last five years.” Another reason for the general increase in shipping costs is the fact that there has been a shipping container shortage for China.
switched to the faster option of air freight for shipping, which is more expensive upfront, but helps mitigate costs in the long term. Some retailers are also moving their manufacturing locations in an effort to meet demands sooner and cut costs, such as switching from China to Vietnam, whereBetween the economic turmoil, higher costs of living, job insecurities, and other amounting frustrations – consumers in general shifted to a mindset of prioritizing essential purchases, and splurging less.
with their merchandise, due to slowing sales of clothing, electronics, furniture, appliances, and other goods.ended up taking hits from their markdowns, which initiated due to shifts in consumer behaviors. It’s proving to be a double-edged sword, because they are also keeping their warehouses full, just in case demand significantly picks up during the 2022 holiday season.
As the saying goes, every dark cloud does have its silver lining. Amid all this darkness, it is safe to say that the people who operate e-commerce and retail businesses have become more resilient than ever in the past two years. They managed to rise above a slew of setbacks, from pandemics, to recessions, breaches, and supply chain issues. And of course, with each setback comes another round of shockwaves.
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