With operating margins being continually squeezed it is imperative that
costs are rigorously controlled.
Every sector is seeing the impact. Many companies have opted out of
using air freight switching their 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.
No comments:
Post a Comment