With operating margins being continually squeezed it is imperative that
costs are rigorously monitored.
Every sector is seeing the impact e.g.
FedEx the world's second largest package delivery company are seeing
their customers moving business from air to slower and less expensive routes.
Manufacturers of electronics and mobile phones are now shipping cargo by
sea because competition was eating into their profit margins meaning they
needed to cut delivery costs.
Traffic will continue to moving onto the water because moving goods by
air is very energy-intensive and the high cost of jet fuel was making air
freight too pricey.
Facing marked resistance from consumers to price increases and a greater
level of competition those companies who are unable to control costs have an
uncertain future.
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