Pinched by Shipping Rates, Companies Need to Be Creative

Profit margins will be more art than science this earnings season. Let’s see if investors like Picasso.

In industries from consumer goods to manufacturing, virtually every line on the income statement is experiencing a degree of stress. In recent months, raw materials, labor and freight have become significantly more expensive and hard to come by. Struggling to keep up with demand, businesses are getting creative — in how they fill orders, how much they charge for their products and where they cut back on spending. “The pandemic ate my profits” may have worked a year ago. “My profits are trapped on a cargo ship in the Pacific” is a tougher sell.