Will Rising Freight Costs Roll Over Company Profits?

A recent Wall Street Journal article strongly suggests that rising freight costs are in turn leading some companies to postpone deliveries, as shipping costs soar.

This all comes in the wake of a frigid winter and rising prices at the pump. Add to the mix a nationwide truck shortage and retailers that must restock after the holiday rush and the result might be earnings that start to suffer.

The Journal mentioned Prestige Brands Holdings Inc., which sells over-the-counter medicines. In response to market conditions, it has had to hire additional trucking partners deliver customer orders. In fact, the company recently noted that higher freight and warehousing costs took its toll on operating margin. What’s more, it anticipates that the trend to continue in the current quarter.

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