Question

what will happen if there is rise in transport cost for goods made in factories ? illstrate with example

Answer 1

the cost will increase of every product
for example: if a factory made a cold drink then when the transport charge will increase the cost of the cold drink will also be increased.

since this affect the cost of every product

Answer 2

The real impact of high transportation costs



By Dawn Russell, John J. Coyle, Kusumal Ruamsook and Evelyn A. Thomchick | From the Quarter 1 2014 issue

 Comment

High transportation costs are driving three main shifts in supply chain strategies. These changes are having a beneficial impact not just on transportation budgets but also on broader supply chain and financial performance.

During the 1990s and the first part of the 21st century, the high availability and low cost of transportation services relative to the cost of holding inventory encouraged organizations to emphasize fast, frequent delivery to customers through such means as just-in-time delivery. But things have changed dramatically in the last decade, and companies increasingly are calling such long-standing strategies into question. The "game changers" are volatile, escalating oil prices and an imbalance of supply and demand for freight transport services. These realities have led to high transportation costs—high enough to cause companies to make transport-driven shifts in their supply chain strategies.

Three such shifts are having a notable impact today. The first is a shift from offshoring to nearshoring sourcing strategies in an effort to reduce the number of miles shipments travel. The second is a shift from designing products and packaging for marketability and more efficient production toward desig