Business can be hard work for the revenue and profits all companies are currently reporting.
This is due to many factors including product type, product market share, Cost of Manufacture and Sale etc.
It certainly doesn't make it any easier when the manufacturing, logistics and cost to customers increases when your sales price is dropping.
Navia Logistics have been advised by all the Shipping Lines that rates have increased from the Peoples Republic of China, Hong Kong, Taiwan, Korea and Japan along with all South East Asian ports to east coast and west coast Australia as of the 1st July 2006.
Simon Borg, Director of Navia Logistics that it is difficult for shipping lines to seriously back up their request for rate increases when the total spent by Australians on major imported goods like clothing and footwear (-2.5%), household contents (-0.4%) and the housing and communications sectors are running at less than 1% growth.
Simon continues to say that Navia Logistics are hesitantly obliged to pass this rate increase on to their customers but will be lobbying suppliers to try and negotiate to get these increases abolished immediately. The problem the shipping lines will have is as the slow down in markets continue, vessels will be moving with less freight than ever before and inevitably, rates fall once again.