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Our experience helps
keep our import business
on a steady course.

These days, traveling across the Pacific is hardly smooth sailing. Shipping is still reeling from turbulence caused by the economic downturn even as new obstacles are arising to impede progress.

When conditions are rough, experience matters most — and fortunately Leggett has a veteran crew of logistics professionals to mitigate the effects of the difficulties we encounter and minimize their impact on our business and our customers.

Negotiating our way across the Pacific.

Consider that 538 ships — or 11% of global capacity — are out of commission as the result of the world economic woes and losses in the shipping industry are estimated at $20 billion. While lower supply adversely affects both costs and availability, Leggett has leveraged our vast shipping volume to obtain favorable rates and soften the impact of container and lane rate increases.

Leggett is also positioned to ensure our cargo arrives stateside on schedule, and avoid the average of 2,000 backlogs and rollovers that occur in Asian ports each week. That's because the precise production schedule we're able to maintain at our Chinese operations allows us to book passage two to three weeks in advance. Additionally, because allocation is based on shipping history, Leggett has earned favorable treatment from our years of exporting.

Of course, there are price hikes that neither Leggett nor any other company can avoid, but that doesn't stop us from finding new opportunities to offset those costs by other means. So while fuel prices continue to trend higher, we've developed direct ship programs that minimize transportation and handling costs. And while a new clean fuel regulation adds significant costs to ships entering California ports, Leggett has expanded our West Coast warehousing operations to offer customers more and better FOB and distribution options. And we continue to triple bid contracts to ensure we remain competitive.

Inflationary pressures have always been a part of business and most likely always will. At Leggett, we're continually looking for — and finding — ways to minimize the impact of rising costs for our business and yours…and most assuredly we always will.

 

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