Economic uncertainty may increase shipping costs

A recent report has forecast that economic uncertainty will leave transportation retailers and manufacturers facing higher shipping costs as they seek space to move their goods.

The Journal of Commerce’s latest Annual Review and Outlook warns that this cautious approach will prompt transportation carriers to keep capacity growth to a minimum.   

"We think all providers of transportation will again be closely managing capacity in 2011," George Macko, United States Gypsum, told the JoC.

The attention to space is most prominent in the ocean container shipping world but stretches across the distribution chain, JoC reported.

"Capacity management will figure prominently in shipping operations in 2011 as container ship operators, trucking companies and others try to get the right capacity to the right place at the right time - at the right rate," said Paul Page, JoC Editorial Director.

He added that, while "difficult lessons" learned in the downturn have reshaped operating strategies in positive ways, uncertainty about economic stability remains.

"Living with uncertainty is becoming a reality the industry is gradually adjusting to, and this will be central to business strategies in 2011," Peter Tirschwell, senior vice president for strategy, UBM Global Trade told JoC.  

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