The Cost Of Shipping Has Historically Affected Business
Thursday, June 10th, 2010Regardless the type of business one decides to become engaged in, there will always be a need to get whatever the product from point of origin to the market. This has not always been such a significant part of doing business, though it has always been a part of the process. The greater societal development has become, the greater the need for speedy inexpensive shipping.
As recently as three decades ago, the cost of moving product from place to place around the country was far less, though never insignificant. Smart businesses have always tried to keep careful tabs on such expenditures to ensure they did not get out of hand. Unfortunately, one of the key ingredients to transportation is oil, and we are dependent in large part on foreign oil. This has left us vulnerable at times to the political whims of other nations, with concomitant negative impact on business.
In addition to the obvious increase in costs due to gasoline and diesel, packaging products have also increased in price because many of them are made from petroleum as well. Expenses due to paper products have also increased as has the cost of labor. In all, it is simply a much more expensive endeavor to move product than it ever has been in the past.
The United States feeling about the delivery of mail and the importance of that process was immortalized by the efforts of the Pony Express which began in 1860. The task was difficult and fraught with peril. The recruiting effort of the founder, William H Russell left little doubt how dangerous the enterprise would be as he even suggested his preference to hire orphans for the job.
The impetus for this daunting task was the pathetic state of mail delivery to that point. The gold rush had accelerated pioneer travel to California, but there was no effective means for getting packages there. The population of Los Angeles did not receive notification that California had been admitted to the union for over six weeks after it had occurred.
The quest to provide truly equal delivery of the mail to every part of the US continued as Congress designated first the waterways, then the railways official postal service. The effort was dynamic but disproportionate. Even for the areas East of St Joseph Missouri which marked the end of the early phases of the railway cities received free mail delivery, but farm areas did not. It took the effort of the National Grange of the Order of Patrons of Husbandry a farming advocacy group started in 1867 and 33 years to get the service started.
The fairness of the practice belied the cost of delivering the service. Eventually the idea of prepaying for postal service was made compulsory to deal with the expense of making the deliveries. This cost would be amplified as the effort to extend service to the west all the way to California was attacked in earnest. The pony express was probably one of the nations more notable and romantic efforts in the continued work to assure total international package delivery.
Today we take the ability to transfer packages across the nation and across the globe for granted. We even have the ability to get things delivered throughout the US overnight and anywhere in the world in just a few days. This has allowed the process of doing business to become and remain truly international. But despite all our progress, it is folly to enter into any business with carefully assessing the cost related to shipping.
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