Ocean Freight Rates continue rising now:
Over the past few months, international ocean freight rates has experienceed a significant increase. Rising fuel(eg.petroleum)costs, geopolitical uncertainty, and shipping capacity adjustments have all contributed to higher transportation expenses. As a result, many importers are placing orders less frequently or delaying purchasing decisions to control logistics costs.
Whether for businesses importing or exporting retail display fixtures, supermarket shopping trolley, and other store equipment, freight can currently represent a much larger percentage of the total project cost than before.
Why Many Importers Are Ordering Less Frequently Or Delaying
Facing the constantly rising logistic cost, many customers have begun to adapt more cautious strategies.
Many distributors and retailers are now:
- Reducing order frequency
- Ordering only essential products
- Delaying new store projects
- Comparing more suppliers before making purchasing decisions
- While these strategies bring short-term effect in reducing cost, they can also cause inventory shortages, longer project timelines and then missing business opportunities.
What about the challenges for manufactures
Obviously, the impact for manufactures is equally significant.
As overseas customers put off orders, factories often experience:
- Higher inventory levels (Higher storage cost)
- Slower production schedules
- Reducing factory operational efficiency
- Longer cash conversion cycles
To manufacuring firms, the new competitive focus has become how to help customers decrease the whole importing cost, rather than only just set lower prices.
How Rubai Shop Fitting Supports Customers
At Rubai Shop Fitting, we understand those challenges because of fluctuating freight cost.
Therefore, our
