| For a while now, shippers have enjoyed competitive service at a great price. But like most industries, the freight industry experiences cycles of expansion and contraction. Now is the time to prepare for the fact that the current rates and service levels aren’t going to last.
In the wake of the pandemic and inflation, the transportation industry went into a recession, and brokers and carriers began offering more competitive prices in an attempt to stay afloat in a tumultuous market. Others went out of business.
Sometime in the next year, though, I believe the demand for trucks will begin to pick up. And when that expansion happens, we’ll start to see a difference in what the transportation providers–both asset and non-asset–offer. Prices will rise. Service will slide.
There are a few reasons behind the unfair paradox of shippers paying higher rates while receiving poor service:
- With fewer trucks sitting “empty” and ready to go, brokers and carriers will be slower to respond to shippers. This longer response time also leads to missed appointments, which of course leads to delays.
- In a busier climate, truckers will have less hours legally to drive due to Hours of Service Laws– because drivers already burned some of those hours on the last load. More delays.
- Haste makes waste. As the entire industry gets busier, mistakes and miscommunications go up.
Able Transport Solutions is prepared for how this contraction affects service, and we’re already building in extra measures and procedures to accommodate for the shift. None of us can stop rates from rising, but if you plan ahead now, your service won’t have to suffer.
If you don’t have a broker you can trust, now is the time to find one. Do your research– check a potential broker’s operating authority and credit ratings. Look at their reviews. Ask your colleagues– a solid and steady reputation says a lot.
Expansions and contractions happen. At Able Transport Solutions, we’re in this for the long haul. |
