Truckload rate increases. Parcel rate increases. Difficulty booking a truck. This has been the frightening story of the transportation industry for the later half of 2017 and into 2018. But when will it stop?
It's hard to say. What we do know is that the shortage of drivers shows no sign of letting up. ELDs are affecting truckload capacity, and the economy is predicted to grow faster than usual, keeping the market tight.
If you are serious about finding capacity and controlling costs, here are a few questions you'll want to ask to make sure you're prepared for this challenging market:
- How good is your data? If you can't answer the right questions in negotiations with carriers, be prepared to have less than competitive rates.
- How are you utilizing a carrier’s truck? What happens when a carrier shows up at your facility or the facility of one of your suppliers? Make sure you're aware of this before rate negotiations.
- If you’re serious about reducing your transportation costs, look beyond just your rates though – look at your practices and processes as well.
If you're interested in making improvements to your supply chain and could use help figuring out where to start, we encourage you to sign up for our Rapid Assessment. It starts with a complimentary evaluation and goes into more depth from there.
We're on your team, we're here to help, and we're passionate about seeing you be successful.
