Based on experience we know that economic conditions can have a significant impact on carrier rates. That is why we encourage shippers to consider what is going on in the economy when they put together their transportation spend management plan.
How can shippers reduce their freights costs in an environment where rates are going up? We know a lot of shippers have had that question on their mind lately, especially with 2019 on the horizon. And we addressed these issues and shared some valuable insights on the webinar we hosted in conjunction with CSCMP and NASSTRAC last week.
Looking ahead to 2019, it’s pretty obvious: Freight rates aren't coming down anytime soon! But what will be different are CEO expectations.
This year I have met hundreds of executives who have told me that the Perfect Storm has really walloped their freight budgets. Many of these executives then tell me that in 2019, they want to see their company do a much better job of managing their freight costs.
Over the years I have given several talks that highlighted the relationship between airline versus motor carrier pricing patterns. In fact, I've often said that whether it is intentional or not, the airlines have demonstrated that carriers can charge fees for services that used to be considered part of your airline ticket. Twenty years ago, these fees were a blip on the radar screen. But in 2017, according to TravelMole, US airlines took in $57 billion, collecting what is known as “ancillary fees” for things like baggage, reservation changes, and on-board services like meals and movies, sales of frequent flier miles, etc...
Let's be honest. Between ELDs, natural disasters and a growing economy, 2018 has been a tough year for transportation and logistics professionals.
