Forecast on Domestic Truck Rates • Increases up ahead
Kim Dulle, a Domestic Supply Chain Specialist with Scarbrough, states that domestic shipping prices are only going to increase in the next few months.
“In an effort to predict future pricing when looking at market trends, there is nothing to indicate that shippers should expect anything other than increased prices,” she says.
Truckload rates are at a two-year high and capacity is tight for vans, flatbeds, and reefers. Load to truck ratios are also setting records that are not favorable for shippers.
The recent hurricane activity made significant impacts. This impact will continue to be felt as rebuilding and recovery efforts continue. Rebuilding efforts will require additional truckloads to affected areas and will also lead to an increase in construction jobs. These positions could offer higher paying opportunities for truck drivers. Driver shortages could become problematic as well.
An improved economy, increased port volume, and the upcoming ELD mandates will also impact capacity in a way that will support increased prices.
Shippers should be flexible when possible.
Increasing lead time, having flexibility in loading and delivery windows, and working with a logistics provider could help alleviate some of the market pressures.
The only lane that may see a decrease in cost per mile is Florida bound from Georgia and the Carolinas.
If you would like to discuss your shipping trends, gain advice, or rates, please email Kim directly at email@example.com.