Lara GuevaraSupply Chain expert (Product and Service)

Panic Buying Costs More

17 Apr 2026 · 1 min

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Lara Guevara warns founders that panic-buying inventory to dodge higher freight rates usually backfires. Buying 30% more stock to avoid a 10% shipping increase costs thousands in storage and tied-up capital, often exceeding the freight savings. Calculate carrying costs before you buy.

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When freight rates increase, many founders respond by panic buying inventory. They buy more than now to avoid higher shipping costs later. That instinct often costs more than the freight increase itself. Inventory is cash. Every extra unit you buy early ties up capital. That inventory sits in a warehouse, and instead of funding marketing or operation— let's do the math. If you buy 30% more inventory to avoid a 10% freight increase, the carrying cost can exceed the freight savings, and you might spend thousands in storage and capital cost to avoid smaller freight increase. Before increasing inventory because of freight fears, calculate the carrying cost, compare it to your shipping cost you're trying to avoid. Use real numbers, not instinct.