Discover How Your Company Can Reduce Freight Costs and Navigate Fuel Price Increases

Written by Sabrina Moreira Paes

Published on 13/05/2022 at 08:44

Updated on 13/05/2022 at 09:08

Alta dos combustíveis pode afastar clientes se o frete for alto

Be the first to react!

High Shipping Costs Can Make Customers Abandon Their Purchase

São Paulo, May 11, 2022 – In online business, shipping is a very important factor during the customer’s purchase on the site, causing them to proceed or set it aside. However, the increase in fuel costs, as a result of the conflict between Ukraine and Russia, can make it difficult to offer lower or even free shipping.

Shipping can serve as a good marketing strategy, according to Alexandre Sousa, head of the sector at Everlog. Therefore, you should not pass the increase in fuel costs onto the customer, as this is a factor that can drive them away from the purchase. In other words, you need to find ways to reduce costs, and you can leverage technology in the race for competitiveness.

Although it may not seem obvious, the war between Russia and Ukraine plays a fundamental role in the increase in fuel prices and inflation worldwide. After all, the region makes a significant contribution to fossil fuel production globally. Thus, the distribution problem affects various sectors in society in a cascading manner.

ARTICLE CONTINUES BELOW

The Conflict Between Russia and Ukraine Plays a Fundamental Role in Fuel Price Increases and Global Inflation

If you still don’t understand why this conflict in Ukraine and Russia affects our country, let’s explain better. Approximately 8% of the oil we use, 20% of the polymers, and 62% of the fertilizers we have in our territory come from Russia. Additionally, about 22% of semi-finished metal products originate from Ukraine.

With the halt in this distribution, we are directly affected. The worst part is that the outlook is not favorable for the coming years, and finding ways to offer cheaper shipping will become a significant challenge. The video below explains in detail the impact of the war on inflation and fuel prices.

YouTube video — *The conflict between the nations of the East brings consequences for the entire world | Source: TV Cultura*

The conflict has resulted in a 68% increase in national diesel prices. Consequently, shipping has seen a staggering increase of 29%, according to data from the National Land Transport Agency (ANTT). Thus, to remain competitive, companies need to implement strategies that prevent customers from bearing this cost.

So, How Can I Offer Affordable Shipping?

In this regard, Alexandre points out that some actions can be taken to reduce shipping costs. Generally, these actions aim at centralizing information and better organizing the logistics process. This way, you avoid long-term problems and provide a higher quality service to customers. Check out the 4 tips we’ve outlined to help you.

1. Seeking Partnerships

The first is seeking partnerships with companies that operate in logistics and transportation to reduce tariffs based on the volume of deliveries. However, it’s important to have more than one partnership to provide more options for prices and delivery times to the customer.

2. Using Technological Resources

Additionally, you can utilize technological resources such as apps or platforms that allow you to customize delivery according to volume characteristics. This resource can enhance outcomes through a prior simulation and then chose the best option to reduce costs.

Technology can also help reduce costs by identifying idle vehicles, that is, routes without cargo. In this sense, through technology and data cross-referencing, these idle moments can be repurposed to bring loads from other places and expedite shipping, as well as lower your costs, to circumvent the increase in fuel prices.

3. Negotiating Delivery Times and Shipping Costs

Another important action is to negotiate delivery timelines and costs with the customer. In other words, the shorter the time, the higher the shipping cost; conversely, the longer the time, the cheaper it is. However, having professionals who manage through Business Intelligence can facilitate the acquisition of this information about customers and offer greater customization for delivery.

4. Closely Monitoring the Delivery Flow

Finally, you should closely monitor the flow of deliveries and analyze possible failures related to timing or addresses. With this data in hand, you can take the necessary measures to prevent these problems from recurring and also ensure payment compliance. Additionally, through constant auditing, you can better control expenses and avoid losses.

Follow these tips and ensure that your business remains competitive, even in the face of rising fuel and shipping costs.

Discover How Your Company Can Reduce Freight Costs and Navigate Fuel Price Increases

High Shipping Costs Can Make Customers Abandon Their Purchase

The Conflict Between Russia and Ukraine Plays a Fundamental Role in Fuel Price Increases and Global Inflation

So, How Can I Offer Affordable Shipping?

1. Seeking Partnerships

2. Using Technological Resources

3. Negotiating Delivery Times and Shipping Costs

4. Closely Monitoring the Delivery Flow

Seven world powers including the US, China, and Russia are spending €22 billion on a reactor in the south of France that aims to confine plasma at 150 million degrees Celsius, ten times the temperature of the Sun’s core, using a magnetic field capable of lifting an entire aircraft carrier.

While Brazil has been discussing bullet trains for 16 years, China delivers 5 new high-speed lines in 2026, surpasses 50,000 km of HSR, and moves 1 billion passengers in a single year.

With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

Elon Musk’s internet comes to mobile: Starlink technology connects smartphones without an antenna via satellite, works even without carrier signal, already costs just US$10 extra in the US, and could arrive in Brazil as an included benefit.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

The United Kingdom removed approximately 1.8 million cubic meters of sand from the seabed and is depositing it all on 6 kilometers of beaches in Norfolk, in a mega-operation to curb erosion, protect coastal villages, and shield a vital gas terminal against the encroaching Atlantic.

Farm in Matopiba transforms cattle manure into natural fertilizer, becomes self-sufficient in phosphorus, and shows how crop-livestock integration can reduce costs amid Brazil’s dependence on imported fertilizers.

Brazil is left out of the European Union’s new list and could lose a billion-dollar market in agriculture: the measure threatens meats, poultry, eggs, honey, and exposes the advantage of Argentina, Paraguay, and Uruguay in exports to the bloc.

While tons of plastic clog streets and schools face classroom shortages, Ivory Coast uses recycled waste as walls to build study environments and expand access to education.

Changan and Chery promise mass production of solid-state batteries with 1,500 kilometers of range in 2027 while Tesla still uses lithium and Toyota only promises to deliver theirs in 2028.

Mobile bridges in the Netherlands transform streets into passages for boats and reveal how sensors, counterweights, and operators make tons of steel move out of the way without disrupting the routine of cyclists, cars, pedestrians, and historic canals in cities where water also functions as a road.

Discover How Your Company Can Reduce Freight Costs and Navigate Fuel Price Increases

High Shipping Costs Can Make Customers Abandon Their Purchase

The Conflict Between Russia and Ukraine Plays a Fundamental Role in Fuel Price Increases and Global Inflation

So, How Can I Offer Affordable Shipping?

1. Seeking Partnerships

2. Using Technological Resources

3. Negotiating Delivery Times and Shipping Costs

4. Closely Monitoring the Delivery Flow

Seven world powers including the US, China, and Russia are spending €22 billion on a reactor in the south of France that aims to confine plasma at 150 million degrees Celsius, ten times the temperature of the Sun’s core, using a magnetic field capable of lifting an entire aircraft carrier.

While Brazil has been discussing bullet trains for 16 years, China delivers 5 new high-speed lines in 2026, surpasses 50,000 km of HSR, and moves 1 billion passengers in a single year.

With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

Elon Musk’s internet comes to mobile: Starlink technology connects smartphones without an antenna via satellite, works even without carrier signal, already costs just US$10 extra in the US, and could arrive in Brazil as an included benefit.

While countries spend billions to draw water from the sea, a Nobel-winning scientist creates a container-sized machine that extracts up to 1,000 liters per day from dry air and uses ultrasound to release water in minutes, even in the middle of the desert.

Belgium will sink 23 giant concrete caissons, each weighing 22,000 tons, in the North Sea to build the world’s first artificial energy island 45 km off the coast, forming offshore electrical walls.

The United Kingdom removed approximately 1.8 million cubic meters of sand from the seabed and is depositing it all on 6 kilometers of beaches in Norfolk, in a mega-operation to curb erosion, protect coastal villages, and shield a vital gas terminal against the encroaching Atlantic.

A ship from China brought over 5,000 electric cars to Brazil at once: it was the largest operation ever recorded by the port, with 5,101 vehicles disembarking in Paranaguá.

The 17-meter, 20-ton monster that the US built in 1939 to dominate Antarctica — and that could only move by driving in reverse: the Snow Cruiser cost US$150,000 and was abandoned forever.

Chinese wind components arrive at the Port of Fortaleza with 76 pieces for wind turbines and continue by road to a wind farm in Rio Grande do Norte.

China completes the world’s largest diameter underwater tunnel under the Yellow River: 17.5 meters in diameter, two levels, six lanes, and a 163-meter TBM named Shanhe.

Brazil’s largest highway receives 20.3 kilometers of new lanes on BR-116/RS, expands the stretch between Porto Alegre and Novo Hamburgo, and promises smoother traffic for 140,000 vehicles per day.

Farm in Matopiba transforms cattle manure into natural fertilizer, becomes self-sufficient in phosphorus, and shows how crop-livestock integration can reduce costs amid Brazil’s dependence on imported fertilizers.

Brazil is left out of the European Union’s new list and could lose a billion-dollar market in agriculture: the measure threatens meats, poultry, eggs, honey, and exposes the advantage of Argentina, Paraguay, and Uruguay in exports to the bloc.

While tons of plastic clog streets and schools face classroom shortages, Ivory Coast uses recycled waste as walls to build study environments and expand access to education.

Changan and Chery promise mass production of solid-state batteries with 1,500 kilometers of range in 2027 while Tesla still uses lithium and Toyota only promises to deliver theirs in 2028.

Mobile bridges in the Netherlands transform streets into passages for boats and reveal how sensors, counterweights, and operators make tons of steel move out of the way without disrupting the routine of cyclists, cars, pedestrians, and historic canals in cities where water also functions as a road.