If anyone has ordered new equipment, parts, or merchandise lately, we have all become familiar with "freight surcharges". In the past, these freight surcharges were built into the price of the goods' you were purchasing and it was an acceptable arrangement. However, 2021 has brought on a whole new meaning of freight surcharges. No longer are they passable through small goods' increases, they are now front and center.
Just yesterday our distribution company, Alpha Omega Sales placed an order through six manufacturers. All but ONE came back with an increase in freight surcharges. One such manufacturer has a $2,000 freight surcharge, which at first I thought was a misprint for $200; however, I was unfortunately mistaken.
Ironically, freight companies are at their all-time slowest transit time. Just in the past two weeks we've had two separate shipments take 10 and 14 business days to get to us, with the two having "normal" transit times of 3 and 6 respectively. And when you call the freight companies asking why, well it goes back to an article TRR 63, they have no warehouse staff or drivers. They are working on 50% employee retention and freight is stuck at the terminals.
It's a vicious cycle and one that has no answers.
For a glimpse on the outrageous surcharges from international freight companies, read through this quick article from S&P Global.