The Fiscal Cliff and Shipping

When you are shipping products, it is always wise to see how economic news could impact the shipping industry. After all, freight forwarders always have their pulse on upcoming economic shifts. Currently, the fiscal cliff is what the US Government is focused on. The fiscal cliff refers to an automatic reduction in the National Deficit resulting from immediate spending cuts and tax increases in the United States. If the politicians in Washington do not resolve this fiscal cliff situation by the end of December 2012, it would have a dramatic effect on many different fronts, including the shipping industry. That is why freight forwarders are keeping an eye on the fiscal cliff.

Going over the fiscal cliff would mean an increase in business taxes. It would also cut gross domestic product in the US by an estimated 4% and send the economy into another deep recession. The fiscal cliff would also have a major effect on the global economy as some prices might increase. This could strangle companies that are looking to ship domestically or internationally. The cost of shipping goods could increase under a new recession. To alleviate the problem of paying more for shipping, it would be wise to use a logistics company to handle your shipments. They can provide you with an instant freight quote online. Their efficiency and connections in the shipping industry would allow you to save more money if we went over the fiscal cliff. Hopefully the politicians in Washington will solve the budget crisis soon and prevent the US from going over the fiscal cliff.