Long-term contracts for both warehousing and transportation requirements will be more effective if the demand and price of warehousing do not change in the future or if the price of warehousing goes up.

Long-term Contracts

Agreements between parties that extend over a lengthy period, often used to secure favorable terms and ensure consistent supply or demand.

Warehousing Requirements

The specific needs related to the storage of goods, such as space, security, climate control, and accessibility, determined by the nature of the products and business operations.