Surging Transportation Costs Forcing Importers To Change Strategy

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Transportation costs have surged as much as 150% for many U.S. businesses since the start of 2010.

That surge is the result of complications in shipping goods from Asia. While production costs may be lower in these markets, actually moving goods to the point of consumption involves difficulties.

That could include anything from corrupt customs practices to a lack of competition in the shipping industry.

The delays associated with these inefficiencies are what’s costing U.S. retailers, who sell electronics and other imports in their domestic market.

Urban Outfitters reported a one week delay on apparel for their 2010 spring collection which resulted in a mark-down on their products. 

Some companies are finding ways of bringing products to market more efficiently.

Talbots examined its shipping and rail supply lines in India and China, then provided U.S. customs with its findings and was approved for fast-lane treatment, expediting processing at customs.

Companies looking to succeed in the recovering global economy, where businesses have increased shipping demands, may need to pursue similar strategies.

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