While there are more trucks in the marketplace now than there were a year ago, carriers and others warn against freight capacity complacency. They recommend three essentials for making sure shippers get the capacity they need now and later.
WHAT A DIFFERENCE A YEAR MAKES.
When the market was tight a year ago, Inbound Logistics’ trucking edition feature article was titled, “Six Ways to Find Capacity.” This month, while not exactly the opposite of a year ago, finds the industry with more capacity and as a result, with lower rates, too.
“Truckload freight rates hit record highs last year, and for-hire carriers did very well,” says Eileen Hart, vice president of marketing and corporate communications for transportation information company DAT Solutions. “Many invested their profits back into the business, buying record numbers of new trucks and improving driver compensation.”
In addition, new carriers attracted by the high rates also entered the market. “As a result, there a lot more trucks are available this year,” Hart adds.
And while truckload freight volume has grown compared to 2018, it hasn’t been at the same pace as capacity. That extra competition for freight has pushed rates back down.Read More