Predicting the future is nearly impossible. However, predicting trends based on historical data, though still imperfect, is more achievable. The 2015 predictions are in and as with 2014 freight costs are expected to rise. The most significant factor leading to increasing costs is diminishing capacity. It is simple supply and demand, and there simply aren’t enough trucks available.
There are several reasons fewer trucks are on the road. For instance, the recession forced a lot of trucks to the sidelines while new trucks weren’t purchased, an aging fleet means new trucks are purchased as replacements not additions, and a severe driver shortage is getting worse.
A recent article in Transport Topics states that rate increases are being pushed through more often than normal and at much higher rates. High single digit and up to 20% increases are not unheard of. However, on the plus side, shippers may encounter lower fuel surcharges as oil prices continue to drop.
As a full service 3PL provider, G&D is a partner you can count on to help you keep costs down by locking in your capacity now for 2015. Give us a call today at 800-451-6680 or fill out a short contact form and we’ll be in touch soon!