Freight rate volatility is one of the most underappreciated risks in physical product businesses. During the 2021-2022 shipping crisis, ocean freight from China to the US West Coast hit $20k+ per container — a 10x jump that wiped margins for importers who hadn't hedged. Air freight as a backup is worth keeping in your model even if you never use it; knowing your break-even point at air rates tells you a lot about product viability.
linolevan10 hours ago
Did… you copy paste this from another discussion? I’ve read this comment before.
Freight rate volatility is one of the most underappreciated risks in physical product businesses. During the 2021-2022 shipping crisis, ocean freight from China to the US West Coast hit $20k+ per container — a 10x jump that wiped margins for importers who hadn't hedged. Air freight as a backup is worth keeping in your model even if you never use it; knowing your break-even point at air rates tells you a lot about product viability.
Did… you copy paste this from another discussion? I’ve read this comment before.