Rising cost of freight fuels distributor fees

Ingram Micro started a snowball effect across the distribution industry last week by announcing it will be charging resellers extra to cover the spiralling costs of freight.

The broadliner bravely admitted it could no longer shoulder the expense of shipping products due
to the rocketing cost of fuel, and revealed it will be charging a freight cost across EMEA from 1 August.

Jay Forbes, president of Ingram Micro EMEA, said: “Fuel prices are at record levels. We have tried to absorb the cost, but cannot do so any longer. The rate of increases over the past 24 months means it has become too large a cost to keep hidden.”

Other distribution players confirmed that they too are looking at charges. Andy Gass, managing director of Computer 2000, said: “We are seeing the same pressure on freight costs and the position is unsustainable. This is due to the rising cost of fuel and the average selling price of a product accelerating downwards. We are also close to revealing our own freight charges. I cannot see a way of avoiding it.”

Joe Hemani, chairman of Westcoast, said: “Energy costs across Europe are up 17 per cent. How can any industry absorb this? We have been looking at this situation all year and have, where necessary, asked our customers to pay for transport.”

Graeme Watt, president of worldwide distribution at Bell Micro, said: “Ingram had little choice. We are all suffering from increased fuel charges and we intend to do something similar to Ingram in August.”

See also:

Ingram passes on fuel costs to customers

Distribution giant admits it can shoulder the cost of increasing fuel charges no more  15 Jul 2008

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