In many cases, freight and logistics costs are the “hidden killer” to your bottom line. Most companies only look that the unit cost of the products and compare that with their selling price to determine if they have a “win” or not as the freight costs will get thrown into the Operating Expenses bucket.
Not only are the costs of freight from Asia ($7,800 per 40 ft. container avg.) killing us but with ships sitting off the coast and not able to unload, lead times are going to out 8-10 weeks in some cases which means you need to hold more inventory which just ties up your cash.
Shipping from Mexico is so much cheaper ($2,000 per 40 ft. container avg.) and quicker (2 weeks avg.)
MXS is now working with US companies to help them nearshore their products out of Asia and into Mexico. We stay involved all the way through the process so you won’t get left at the altar. Contact us for more details.