Transport costs bringing manufacturing back home: Shippers

NEW YORK — Trends in global shipping could affect freight shipments in North America, as rising transportation costs are causing some companies to bring manufacturing back to the U.S.

At the Greening the Supply Chain conference sponsored by the International Warehouse Logistics Association in June, an Ikea representative told attendees that the manufacturing of some bulky products, such as furniture, is beginning to move back to the U.S., according to the Journal of Commerce.

In addition, locating manufacturing facilities closer to the retail market is good for the environment because it reduces diesel emissions in the supply chain.

Of course, says the official that might mean less freight for truckers moving goods coming into the nation’s ports.

One of the few bright spots in the current U.S. economy, exports, is facing a challenge that could affect the amount of freight moving to and out of ports — a shortage of shipping vessel and container capacity.

According to a recent report in Shipping Digest Online, foreign buyers who want to take advantage of the weak U.S. dollar to buy goods at bargain prices may turn to suppliers in other countries because of frustration over long delays and unreliable delivery schedules.

— Via Heavy Duty Trucking