Blast Abrasives delivered costs are shooting up!
2018 is turning out to be an exceptional year – in terms of cost increases for Abrasives.
Not necessarily the cost of the Abrasive itself, but coupled with the Delivery cost, we are experiencing increases anywhere from 20% to 40% in landed cost compared to 2017.
Why the freight cost increase in 2018? According to a May 25th Washington Post article by Heather Long, some of the reasons are as follows:
In addition to the above factors, Abrasives are particularly vulnerable to freight cost increases. Why? Because the relative percentage of freight cost to the total delivered cost of Abrasive is quite high – for example, it is not unusual for the freight cost to be greater than the Abrasive cost for a given customer.
So, expect to pay more for Abrasives – and, expect delays in receiving orders. TCR Blast Abrasive orders for Full Truckloads have shown minimums of 20% increase in freight costs – and delays as long as 1 to 2 weeks.
Some suggestions for combating the increase in Abrasive Costs are:
Be creative when confronting the issue of increased Abrasive costs – modify the current purchasing norms to allow more time, increase the quantity of each purchase, and look for more local (closer) stocking sources.