While some transportation decision-makers recognize how supply and demand are impacting the Less-than-Truckload (LTL) marketplace, you may find that others are apprehensive to believe what is happening.
You've been hearing about the shortage of drivers, new regulations and solid demand that are driving up rates. But what else is happening in the industry?
With these additional influences, you will find it hard to ignore the current state of the shipping environment and the excuses (nay reasons) why everything seems to be going up these days.
No one factor is to blame for the current shipping environment. It’s a trickledown effect with each concern affecting the next.
Does this help to accept higher than normal rates charged by trucking companies to haul loads over the country’s more than 46,000 miles of interstate highways? Probably not, but it’s a start. And the smart, innovative carriers know that if they cannot continue to deliver on expected service standards, they won’t be able to continue to charge for it.
What’s worse? Paying higher than expected freight charges and your shipment not arriving on time? Or not paying and your shipment not arriving on time? Partner with a carrier who is committed to putting their shippers first and creating capacity.
A shipper that has ramped up its recruiting efforts to hire and retain drivers and concurrently making the necessary investments in equipment to handle more capacity. Analyze and determine if you will still be a priority if your carrier partners with Amazon. Most importantly, continue to communicate with your carrier to determine mutually-beneficial strategic solutions.
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