In a sign that the supply chain crisis that’s marred the later half of the pandemic may finally be on the wane, freight rates have declined for the first time this year. You might take this as your cue to tamp down on prices, but that assessment may be premature.
Freight rates in the U.S., which had increased at least 28 percent year over in 2022, declined by almost 2 percent in July, according to recent data compiled by Cass Information Systems, a St. Louis, Missouri-based financial services company. That’s good news for businesses, especially retailers, that have encountered price hikes this year, especially coming into peak season.
More availability on shipping vessels will help lower costs as supply starts to dissipate, Cass Freight report researcher and author Tim Denoyer told CNBC. “I think that’s going to be a good thing from a cost perspective for those big retailers who have been struggling with a lot of cost inflation.”
This doesn’t mean, however, that supply…
This article was written by Brit Morse and originally published on www.inc.com