It has been a while since I have posted due to many reasons and factors, but I won't waste time by elaborating.
Needless to say, our transportation world continues to be tilted by the extremely high fuel prices being paid. More and more truckload carriers are beginning to park trucks rather than lose money and more truckload carriers are shutting their doors. The combination of low freight rates and high diesel prices is finally hitting home and we are seeing the first steps in the correction process.
From a broker standpoint, trucks are beginning to demand higher rates to take loads and they are justified in every way. Their expenses have been outpacing their revenue and customers continue to push for lower rates to control their transportation costs. But this is beginning to change.
We are also beginning to have more service issues as less trucks are available to take loads. Depending on the day and the area, trucks can be difficult to find or they can be relatively easy to find. But one thing is certain; they all want more money to haul the same loads they have been moving for the past year or more. The supply of freight is beginning to increase with the arrival of the Spring season and more produce moves. At the same time we are seeing a reduction in the supply of trucks caused by recent bankruptcies, etc.
I predict the next 6-12 months will be difficult for carriers, brokers, shippers, 3PLs, 4PLs and everyone involved in the transportation industry as the correction gains momentum.
Carriers will continue to face daily challenges by trying to balance revenue and rising costs.
Brokers/3PLs will continue to face daily challenges as trucking companies demand more money and customers continue to try control their freight spend. And the reduction in the number of carriers will impact their ability to provide lower rates and quality service.
Shippers will begin to see their freight spend go up and not just based on fuel surcharge increases. Base rates will rise. It is the only way the true trucking companies can stay in business.
