Summary
This article that I have read is from a highly recognized media news company named “The Wall Street Journal”. FedEx is a well known company that is significant for their shipping services across the globe. In September 29 2010 FedEx Corp has announced price adjustments for the coming months of 2010 to be increased. The announced procedures will affect shipping rates of imports and exports. U.S.
Connection
This article relates to one of the crucial terms in Chapter Eleven – Freight. Freight is defined as goods that are carried in a large vehicle for transportation. Usually in a business there is an account named freight-in and this account deals with the money spent by the manager for goods to be shipped in. In this case, FedEx is increasing rates for exports and imports and what does this mean? Increasing rates for import and export can impact many things such as price. Now price is a very broad term because price can apply to many aspects. Increased rates could lead to price changes in products, services, wages, expenses and more. FedEx interfered with a crucial expense, changing it for better or for worse.
Reflection
I was knowledgeable of the term freight because I have read many articles on this subject already. Although being knowledgeable on this I never expect such small changes could have such drastic effects. The increased rates that FedEx had proposed could be affecting majority of the population including myself because higher expenses causes higher prices. My uncle who owns a business in the U.S. would be hit by these changes because his imports and exports are crucial to his success. Overall I believe that the increased rates will affect me and my relatives who owns businesses because it will bring challenges that they would need to face.
I can agree with what you have said about Freight-in. I understand how you explain the increase in shiping rates of exports and exchanges.The fact that the change in fright in can change the rates in shipping and imports, will change the way businesses do their business. Overall, this is an excellent article.
ReplyDeleteIn my opinion, FedEx is the worse shipping company. I can relate to this because, I used FedEx and their rates were incredibly higher than UPS. I like the connections and it made me understand in economic terms, demands will decrease for FedEx, and other businesses will choose different shipping companies. I could relate to this article as well because I owe a small business. Although this was quite a short article to summarize, very good perspective on freight-in.
ReplyDelete-Jtran