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· Posted on
February 21, 2024

Logistics companies are chucking on an extra levy and boo you, Omicron

Omicron, Delta's more contagious partner-in-crime, is in the building.

What's the key learning?

  • Logistics companies are being hit hard by Omicron. So Qube, a major car import company, have responded by bringing in a new levy of $25 per container
  • It's all because the company is short-staffed, it needs to cover the costs of recruiting new, temporary labour
  • With businesses spending more on recruitment...they need to recoup those funds elsewhere.

Background: Omicron, Delta's more contagious partner-in-crime, is in the building. It means close contacts are up...isolations are up...and staff just ain't showing up to work (or in fancy terms -  'pandemic-related absenteeism' is rising). 

What happened: Logistics companies are being hit hard. For example, Qube, which handles around 750,000 car imports are year, are having to introduce a new levy of around $25 per container.

What else: Why? well, because the company is short-staffed, it needs to cover the costs of recruiting new, temporary labour. Ouch.

So what's the key learning?

💡COVID had some obvious side effects...and some less-obvious side effects. 

💡The more obvious side effects were:

  • lower foot traffic in stores and
  • loss of sales due to store closures.

💡But pandemic-related absenteeism wasn't on the map. So now, with businesses spending more on recruitment...they need to recoup those funds elsewhere. That means we may eventually get slapped with shipping levies ourselves. The horror!

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