What should shippers expect to see in preparing their freight budgets for 2020?
Aug 14, 2019
It’s that time of the year again. We’re starting to hear from lots of transportation professionals that are putting together their budget for 2020 and looking for advice.
There are a lot of wildcards out there that could have a significant impact on your freight rates and transportation budgets, but what most people are interested in at the end of the day is what will happen with rates. So let’s cut to the chase:
We’re predicting that in 2020 freight rates for truckload carriers will be flat or down and LTL rates to be relatively flat or adjusted with smaller increases. However, expect LTL carriers to continue using targeted pricing which means that shippers could see significant increases OR decreases based on the extent to which a shipper’s freight aligns with a carrier’s network.
We’re dealing with a lot of uncertainty this year. Plans for the future will be impacted by questions like:
- What’s going on with the economy? Will we see a recession materialize?
- What will happen with tariffs or the escalating trade issues with the United States and China? Will this be settled soon or continue into 2020?
- Will we continue to see, as Bob Costello, ATA’s Chief Economist predicts, a sizable number motor carriers going out of business because of a recession?
Over the next couple of weeks, we will address these issues head on. So stay tuned, because we are dialing into the TranzAct network to get answers that will help you to understand your options in the current market and help you build a great transportation budget for 2020. And don’t forget. Our friends at Supply Chain Edge are industry practitioners. They’ve walked in your shoes, and have a wealth of knowledge and experience in building and maintaining “Big Time” transportation budgets. So if you have questions or could use help with this or anything else, we encourage you to get in touch with us.
As always, we welcome your feedback. And look for next week’s Two Minute Warning where we will feature our interview with noted and award winning economist, Gary Shilling.