“Price Pass-Through Rate Stalls in the 20s for Transportation and Warehousing”

On March 22nd, Teikoku Databank released the results of a survey on price pass-through practices. The survey was conducted in conjunction with the TDB Economic Trends Survey for February 2024.

According to the survey, it was found that in the transportation and warehouse sector, companies were able to pass on approximately 20% of the cost increases through price adjustments. However, challenges were noted in cases of complex subcontracting arrangements, where subcontractors faced difficulties in negotiating with shippers, leading to potential difficulties in price pass-through practices.

This data sheds light on the dynamics of price pass-through rates within the transportation and warehouse industry, emphasizing the importance of effective negotiation strategies and transparency in subcontracting relationships for successful cost adjustments. Stay informed on the implications and potential solutions identified in the survey to navigate challenges related to price pass-through practices effectively.