Today’s mantra – focus on cutting costs

 

With operating margins being continually squeezed it is imperative that costs are rigorously controlled.

 

Every sector is seeing the impact e.g. FedEx the world's second largest package delivery company have seen 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 face an uncertain future.