Burlington secures ocean contracts to manage elevated freight costs

Burlington Coat Factory is taking a strategic approach to rising ocean freight costs by securing favorable contracts and optimizing inbound and outbound shipment configurations. Chief Supply Chain Officer Greg Shultz revealed the retailer is increasing product density per container—packing and loading more goods into each shipment—to improve transportation unit economics. This dual strategy reflects how major retailers are adapting to a persistent environment of elevated freight rates that continue to pressure margins despite post-pandemic volatility moderating.

The initiative signals a maturation in how retailers approach carrier negotiations and logistics optimization. Rather than simply absorbing higher freight costs or passing them entirely to consumers, companies like Burlington are leveraging procurement sophistication and operational excellence to improve leverage. By committing to defined ocean service levels through contracts while simultaneously optimizing load factors, the retailer addresses both the rate exposure problem and the efficiency problem.

For supply chain professionals, this case study demonstrates that sustainable cost management in challenging freight markets requires a multi-faceted approach: secure predictable capacity through contracts, invest in operational metrics like fill rates and utilization, and maintain visibility into carrier performance. As freight markets remain volatile, companies that combine procurement discipline with operational rigor will maintain competitive advantage.