If The U.S. Economy Grows In 2015 Will Trucking Rates Increase Too?
Economist in the U.S. are predicting that the economy in 2015 will grow further, and data released by the EIU (economist intelligence unit) is estimating GDP to increase by 3.2% that is more than a full percentage point higher than our growth for the last 3 years. Put that together with lower fuel prices and its all but a given that there will be higher consumer demand for daily staples to other luxurious items. Shippers at the SMC3 were told to prepare themselves for higher trucking rates as truckload capacity concerns are expected to linger throughout 2015 and beyond.
Capacity Concerns, The Headache That Won’t Go Away
By now most anyone within the logistics industry or with a logistics position has heard or been affected by capacity concerns and it is reflected in higher prices, delays and its affecting the flow of products from manufacturer to consumer and this lost time is translated into lost revenue. Capacity concerns for truckload equipment are not just confined to one area or market it is a nationwide problem from coast to coast and everywhere in between. Luckily new trailer orders were reported to be slightly over 39000 for the month of November 2014 but this does not mean that there will soon be 39000 van or flatbed trailers available to ship the abundance of truckload freight because within this number are orders for the replacement of aging equipment. Trucking companies are enjoying higher rates and are in no hurry to relieve capacity issues anytime soon. Furthermore truckload carriers have a more pressing issues at hand and it’s who will drive them? The trucking industry is not a “if you build them they will come” type business.
Truckload Shipping Outlook For 2015
So all in all truckload shipping woes will remain throughout 2015 and will probably be worse than in previous years due to the improvement in the economy and lower fuel prices. Manufacturers and distributors would be well advised to prepare not only their budget but their wits as 2015 looks to be a challenging year for everyone within the trucking industry. Manufacturers should expand their truckload service providers to keep their shipping needs satisfied. A good idea for distributors would be to take advantage of market conditions specific to their region and stock up on product when an influx of carriers into their area can bring prices down temporarily. Another idea would be to incorporate intermodal service into their current truckload shipping needs. We will look further into intermodal rail on our next informative post. Stay tuned.
With these tips you should have a safe and pleasant experience using a freight service company such as Freight-Specialist. We recommend that you consult with us prior to having your shipment scheduled for pickup if you have any doubts or concerns.