7 Proven Strategies from a 129-Year-Old Logistics Expert
Why Your Freight Costs Are Skyrocketing (and What You Can Do About It)
Are you watching your shipping budgets spiral out of control? You’re not alone. Global freight costs have increased by over 400% since 2020, leaving businesses scrambling for solutions. Companies that survived decades of market volatility know some things others don’t.
Turners Shipping, having celebrated its 129th year, have weathered every storm imaginable with resilience, agility and adaptability.
The brutal truth? Most businesses are making the same costly mistakes that could easily be avoided with the right strategy.
In this Article:
- A Journey Through Time: The Evolution of Global Logistics
- The Hidden Freight Cost Killers Nobody Talks About
- How Turners Shipping Navigated the Storms over 129 Years
- 7 Game-Changing Strategies to Slash Your Freight Costs
- Ready to Transform Your Logistics Costs?
A Journey Through Time: The Evolution of Global Logistics
The modern logistics industry has its roots in the late 19th century, around the time Turners Shipping began operations in 1896. Back then, freight was slower and less predictable, reliant on steamships and railway networks. The growth of international trade in the early 20th century demanded more structured freight forwarding and customs clearance solutions, giving rise to companies like Turners Shipping, which specialises in managing the complexity of moving goods across borders.
As we moved through the decades, logistics became more sophisticated, but also more exposed to global events.
World Wars and the Post-War Boom
Both World War I and World War II severely disrupted international trade, resulting in damaged infrastructure and restricted shipping lanes. However, the post-war periods were marked by reconstruction and growth, with the Marshall Plan and economic recovery in Europe and Asia significantly increasing the volume of trade.
The lesson? Flexibility isn’t optional; it’s survival.
The Oil Crisis of the 1970s
The OPEC oil embargo led to skyrocketing fuel prices, which directly impacted sea and air freight costs. Freight forwarders had to re-evaluate routes, switch transport modes, and negotiate more strategic contracts with carriers to manage cost volatility.
The lesson? Relationships matter more than price in crises.
The Rise of Globalisation (1990s–2000s)
The fall of the Berlin Wall, the establishment of the World Trade Organisation, and China’s entry into global markets ushered in an era of unprecedented global trade. Just-in-time (JIT) became the buzzword, and supply chains flourished. Freight became faster and more affordable. However, this also made supply chains more fragile and dependent on geopolitical stability.
The lesson? Never put all your eggs in one basket.
COVID-19 and Beyond (2020s)
The pandemic exposed vulnerabilities in global logistics. Port congestion, container shortages, and factory closures created bottlenecks that are still being felt today. Freight costs surged, with container rates on major trade lanes increasing by over 400% at their peak. This has since been exacerbated by regional conflicts, such as the war in Ukraine, and rising tensions in key trade corridors like the Red Sea and Taiwan Strait.
The lesson? Technology investment isn’t a luxury; it’s a necessity.
Trade Wars and Sanctions
The economic world has seen all forms of Trade Wars, Sanctions and Embargoes. These Trade Wars include the 1930s Smoot-Hawley Act, 1960s Chicken War, 1980s Pasta War, 1980s US-Japan Trade War, 1990s Banana War, 2018 US-China Trade War and the current 2025 US Trade War. Then there are Sanctions imposed against various countries in the 20th and 21st centuries, including Italy, Japan, Cuba, Iran, South Africa, Iraq, Haiti and Russia.
Whatever the catalyst, Trade Wars and Sanctions have taken on varying nuances, but with very similar outcomes. While some politicians might suggest otherwise, these “blunt” instruments are really complicated and almost never yield positive outcomes. When that happens, global trade slows down, the economy takes a hit, and ultimately the consumer pays, but eventually the economy normalises. A key observation from history is that the economic waves ebb and flow.
The lesson? Preparation for the unexpected is key to survival and reduces the risk of reactionary behaviour.
The Hidden Freight Cost Killers Nobody Talks About
1. Fuel Price Volatility: The Silent Profit Killer
Fuel surcharges can account for 20-40% of your total freight costs. With oil prices swinging wildly due to geopolitical tensions, these costs hit businesses like a financial tsunami.
2. Port Congestion: The $50 Billion Problem
Port delays cost the global economy over $50 billion annually. In South Africa alone, port congestion has increased dwell times by 60% since 2020.
3. The Compliance Nightmare
New environmental regulations like IMO 2020 have forced shipping lines to upgrade their fleets. Guess who pays for it? You do, through higher freight rates.
4. Trade Policy Uncertainty
Tariffs, sanctions, and regional trade agreements can change overnight, affecting the flow of goods.
How Turners Shipping Navigated the Storms over 129 Years
Celebrating 129 years in business is no small feat. Turners Shipping has thrived and forged forward through multiple global crises by adhering to a core set of principles:
- Adaptability: Whether it was rerouting cargo during wartime or pivoting to airfreight during port strikes, flexibility has been key.
- Strong Networks: Turners has invested in long-standing partnerships with international agents and carriers, allowing them to secure space and negotiate favourable rates even in high-demand periods.
- Technology Investment: By embracing digital freight solutions, shipment tracking systems, and automated customs documentation, Turners has stayed ahead of the curve, offering efficiency to its clients.
- Regulatory Expertise: As compliance becomes more complex, Turners’ in-depth knowledge of customs laws ensures cargo moves smoothly, avoiding costly delays.
7 Game-Changing Strategies to Slash Your Freight Costs
Strategy #1: Master the Art of Consolidation
The opportunity: Combining multiple shipments into Full Container Loads (FCL) can reduce costs by 30-50% compared to Less Than Container Load (LCL) shipping.
How to implement:
- Work with your freight forwarder to identify consolidation opportunities
- Coordinate with other departments to align shipping schedules
- Consider shared container space with non-competing businesses
Strategy #2: Become a Planning Powerhouse
The game-changer: Advanced planning isn’t just good practice, it’s profit protection.
Action steps:
- Plan shipments 4-6 weeks in advance
- Avoid emergency airfreight (costs 5-10x more than sea freight)
- Use seasonal demand forecasting to optimise timing
Strategy #3: Diversify Like Your Business Depends on It (Because It Does)
The risk: Over-reliance on single suppliers or ports creates vulnerability.
The solution:
- Sources from multiple countries
- Use alternative ports of entry
- Develop backup suppliers in different regions
Strategy #4: Leverage Technology for Competitive Advantage
The tools that matter:
- Real-time tracking systems
- Predictive analytics for cost forecasting
- Automated customs documentation
- AI-powered route optimisation
Strategy #5: Master Your Incoterms (Most Companies Get This Wrong)
The mistake: Using the wrong Incoterms can cost you thousands in unexpected charges.
The fix: Review and optimise your Incoterms based on:
- Your risk tolerance
- Cost allocation preferences
- Customs clearance capabilities
Strategy #6: Lock in Rates with Strategic Contracting
The opportunity: Long-term contracts can protect you from market volatility.
Best practices:
- Negotiate volume-based discounts
- Secure space allocation during peak seasons
- Include fuel adjustment clauses for predictability
Strategy #7: Partner with Proven Experts
The reality: Logistics expertise isn’t built overnight; it’s earned through decades of navigating crises.
What to look for:
- Established carrier relationships
- Regulatory expertise
- Crisis management experience
- Technology integration capabilities
Ready to Transform Your Logistics Costs?
Turners Shipping has weathered 129 years of crises, wars, and global disruptions. We didn’t just survive. Turners Shipping adapted, innovated, and partnered with like-minded experts who understood the game.
Your next move matters.
Don’t let skyrocketing freight costs destroy your profit margins. The strategies outlined above aren’t just theory; they’re battle-tested solutions that have worked for over a century.
Get Expert Help Today
Turners Shipping has guided businesses through every major global crisis since 1896. Our 129 years of experience, combined with cutting-edge technology and strategic partnerships, can help you:
- Reduce freight costs by 20-40%
- Improve supply chain resilience
- Navigate complex customs regulations
- Access priority space during peak seasons
- Leverage technology for competitive advantage
Ready to start saving? Contact Paul Thomas, our National Commercial Manager, who will connect you with one of our dedicated specialists. Because when it comes to managing logistics variables, we’ve seen it all.
Gregory Marks
Business Development & Transformation Manager
Turners Shipping | South Africa