News

Truckload Forecast

Optimizing 2017 Shipping

Express Logistics

11/14/16

The trucking industry is a crucial component of the US transportation infrastructure. Over 70% of our freight is moved by trucks, with $700 billion spent annually. The transportation industry continues to be measured by economists as an indication of the health of the country as a whole. When trucks are busy, it’s a good sign for our economy.

The economy has seen a shift in demand, and there continues to be a driver shortage issue, along with a lack of experienced drivers. Throughout 2016, several larger companies (Swift Transportation Co., Werner Enterprises Inc. and Covenant Transportation Group Inc.) pulled a combined hundreds of trucks from service since the second quarter.

As companies continue to optimize their freight needs, the importance of lead times and quality service is increasingly important. It’s important to work with carriers that you know and trust to receive the level of service that you expect.

Why is this happening?
• Trucking firms are hoping to change the imbalance between supply of rigs on the road and weak shipping demand.
• According to DAT Solutions LLC, which measures freight rates in the industrial-trucking market, prices for spot-market freight hauls and shipments moving under long-term contract have been slipping for most of the year. Rates in September were down 6.4% from the same month a year earlier.
• Businesses are still working down inventory levels.
• Strong US dollar, and subpar overseas demand is hurting export activity.

What can you do to optimize your shipping during a time of change?
• Over the short term, prices may fall, but can rise with tightened capacity.
• Consider shorter bid schedules. Reviewing this every 6 months can help you take advantage of the market situation.
• Have an open dialog with your carriers to ensure you are taking advantage of the changing market conditions.
• While you will receive calls from many types of providers, make sure that you are working with carriers you know and trust.

By shipping with Express Logistics, you can rest easy. We have optimal carrier management and liability protection to ensure that you are covered. If you have any concerns about your current shipping situation, or would like to learn how you can take better advantage of today’s market conditions, let’s have a conversation.   Please contact us at serdman-lewis@exp-logistics.com.