Shipping Remains A Significant Cost Of Doing Business

By , June 10, 2010

Anyone who has ever invented a product or sought to make a living by selling items either self made or in the retail market understands a basic need to move the product from place to place. Whether the need is a local endeavor, a nationwide event, or a global necessity, there are significant costs involved with getting the product from where it is created to the consumer who will buy it. Shipping has become a major factor in business, and controlling or managing it has become a significant part of every company.

Adjusting the costs for inflation, a gallon of gasoline in 1970 would cost approximately $1.60 compared to its current price of over twice that. But more important than the outright cost of fuel is the inconsistency and inability to control that cost. Unlike most products that adhere to a supply and demand interaction with regard to price, fuel is unique in the introduction of international politics to the equation. In the early 1970s the so called oil crisis was not the result of inadequate supply, but a conscious decision by members of OPEC to reduce production and delivery to the US as punishment for American support to Israel.

But the cost of getting goods around is not exclusively due to the cost of transportation. Packages require packaging, and much of that is also dependent on the price of oil, so we have double the impact on business. But in addition to these costs, the size and geography of the US has always had an impact on delivering mail and packages.

From the beginning of the nation the notion of delivering packages and mail was an especially important process. The postal service was a mammoth enterprise with a truly nation building impact. Benjamin Franklin became our first postmaster general in 1775, earlier than the signing of the declaration of independence. Unfortunately, mail delivery was not equally available to all Americans.

As things develop, the easiest methods were harnessed first, so people who lived in the cities began receiving official free mail service in 1863. It would be three decades before an organization representing the interests of the farming community could coerce congress into officially launching rural free delivery. But even this new service did not reach all Americans, the west was largely without service.

The quest to provide truly equal delivery of the mail to every part of the US continued as Congress designated first the waterways, then the railways official postal service. The effort was dynamic but disproportionate. Even for the areas East of St Joseph Missouri which marked the end of the early phases of the railway cities received free mail delivery, but farm areas did not. It took the effort of the National Grange of the Order of Patrons of Husbandry a farming advocacy group started in 1867 and 33 years to get the service started.

The fairness of the practice belied the cost of delivering the service. Eventually the idea of prepaying for postal service was made compulsory to deal with the expense of making the deliveries. This cost would be amplified as the effort to extend service to the west all the way to California was attacked in earnest. The pony express was probably one of the nations more notable and romantic efforts in the continued work to assure total international package delivery.

Today we take the ability to transfer packages across the nation and across the globe for granted. We even have the ability to get things delivered throughout the US overnight and anywhere in the world in just a few days. This has allowed the process of doing business to become and remain truly international. But despite all our progress, it is folly to enter into any business with carefully assessing the cost related to shipping.

Looking for an excellent Cross border shipping/courier delivery service? As Canada’s largest courier company, they offer overnight shipping, air freight, and other services to ensure your shipments get where they need to be quickly.

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