"Mike, my truckload rates are through the roof!" Are higher freight rates the new normal?

This week I was having lunch with a good friend who is the CEO of a successful company here in Chicago. When we got around to discussing what is happening in the freight markets, he noted that in the last two months, they have experienced double digit increases in their truckload freight costs. It begged the question: "Is this what we should expect to see in 2018?"

I reminded him that for the past couple of years we have been warning shippers that if the growth in quarterly GDP was 2.5% or higher on a consecutive basis, we'd see tight capacity in the freight markets and higher rates.

Well folks, we're there. After a slow first quarter of growth around 1%, we've seen GDP growth of 3.1% and 3.0% in second and third quarters. And to compound the situation, the hurricanes and the upcoming ELD mandate are also impacting carrier capacity. Add it all up and it is easy to understand why the CEO of a large motor carrier told me: “It’s a great time to be a trucker!”

While we can’t tell you exactly what will happen throughout the fourth quarter and into 2018, we have assembled some excellent information to help guide you in the current, challenging environment. So if you are interested in learning more about what to expect and how you can find ways to hold—or even decrease—your rates, check out our Perfect Storm Preparation Center. We have some great resources loaded with tips on how you can work with your carriers and manage your freight costs.

And don’t forget about our upcoming "How To Survive The Perfect Storm" webinar on Tuesday, November 14.

We provide all of this because we're on your team, we're here to help, and we're passionate about seeing you be successful.