Rising Freight Rates: Passing the Buck
Most of our competitors have chosen to pass increased freight costs and fuel volatility onto their customers.
Sugaright continues to “Do Sugar Right” by honoring freight pricing.
Simply put, we don’t sell what we can’t deliver at the contracted price.
Sugaright mitigates this transportation challenge through our unique business model:
Our strategically located micro-refineries create shorter lanes and less risk of driver shortages needed for long-hauls.
·Our long-term contracts and relationships with our valued trucking companies reduce price volatility and guarantee the availability of trucks.
And our talented team is always seeking and evaluating alternative methods of transportation and supply chains.
So, what does the future hold and how will these realities impact the freight costs that our competitors will pass onto their customers?
Though there has been some softening from historic highs, the freight market continues to be full of uncertainty. And rates continue to be significantly higher than historical averages.
Contracted rates continue to increase, driven by driver pay increases that have yet to dramatically impact the national driver pool. Despite significant increases, many carriers still report having shrinking driver pools.
Fuel has increased by over $2.30 / gallon in the last year, meaning a 250-mile haul is nearly $100 higher just due to the price of fuel.
Operating expenses for maintenance and insurance have also skyrocketed; replacement parts becoming harder to source with longer lead times and inevitably higher prices.
HOS restrictions are still hampering industry capacity and flexibility. Driver delays can lead to loads missed with longer time between re-delivery periods.
Our competitors have chosen to make these increased costs YOUR PROBLEM, not theirs.
At Sugaright, we chose to not “pass the buck” to our valued customers by honoring the quoted freight pricing even in the midst of price volatility and fuel cost increases.
Buying sugar is no longer just about price. Contact us to learn more about how Sugaright can help reduce your supply risk and cost uncertainty.
We Do Sugar Right!