DHL Joins Rivals FedEx plus UPS in Raising Delivery Rates Amid Inflationary Issues
“You have common inflation. We’ve got to cover for the. “
DHL Express ties rivals FedEx Corp. plus United Parcel Service Inc. in raising freight rates for customers, which begs the question: Is inflation structural in nature rather than “ transitory”?
Effective Jan. one, DHL will increase freight rates by 5. 9%, or about the exact rate FedEx announced last week.
“ You have common inflation; We’ve got to cover for the, ” Mike Parra, CEO of DHL Show Americas, told WSJ . He said some other costs for increasing capability, such as planes, trucks, and facilities, are becoming more expensive.
DHL Show announced the increase upon Friday and said it could apply to U. S. members shipping to or from the 220 countries and areas. It was only last week when FedEx and UPS stated they would increase freight rates. Each companies called today’s atmosphere “ challenging” as costs rose.
This ultimately means that retailers will have to increase prices because the cost of shipping is only heading higher. The cost pressures can force retailers to absorb added costs or pass all of them along to consumers.
Cathy Roberson, head of research plus consulting firm Logistics Styles & Insights LLC, said rising shipping costs could be a nightmare for companies that could have to rethink their logistical fees for customers:
“ Suppliers may need to rethink the whole ‘ free shipping’ offering which they provide to their customers, ” Roberson said. “ It’s going to end up having to become trickled down to the customer, because the shippers— such as retailers, manufacturers, wholesalers and so on— they can’t keep absorbing higher expenses. They’ve got to pass them on in some form or another. ”
At the same time, at the annual Morgan Stanley Laguna conference, some of the largest U. S. corporations warned a week ago that inflation is “ unprecedented” and becoming “ structural. ”
There’s even speak from BofA’s Michael Hartnett that this winter could be filled up with higher inflation, hawkish main banks, weaker growth, i. e., stagflation.
One would suspect that it’s just a matter of time before Amazon . com raises its monthly Best membership as soaring logistical costs show no indications of abating anytime soon.
Mike Adams joins Alex Jones to expose the collapse associated with society taking place as supply chains are disrupted and how that matches squarely into the globalist plan to swoop in and take control.