You may have seen our recent article on the current issues facing the trucking industry in 2016. It’s now becoming more and more apparent that these issues are affecting this particular mode of freight transportation more than any other.
FTR, a freight transportation intelligence company, tracks truckload and LTL trucking regularly and it just released its most recent Trucking Condition Index (TCI) report. At 8.27 the TCI reflects a forecasted slowdown in truck loadings.
What does that mean for you?
According to Jonathan Starks, Chief Operating Officer at FTR, a decrease in the number of freight loads means there will be less pressure on capacity. With less pressure on capacity the rate environment is less likely to improve.
Stark says that even though the rate environment has deteriorated, both contract rates and spot rates are expected to improve before the year is over. That is unless the market sinks further which ultimately depends on the manufacturing sector and fuel prices.
Keeping up with all the changing regulations and trends of the trucking industry can be a hassle. It takes extensive knowledge to understand the industry well enough to get the best rates. Proactively monitoring the trends of every sector of the freight transportation industry – not just trucking – rather than reacting to them is necessary.
Who has time for all that though?
While it depends on the size and type of your business, outsourcing your freight transportation needs to a 3rd party logistics (3PL) provider, such as FreightCenter, can be the most time and cost efficient way to streamline your logistics operations.
3PLs are experts in freight transportation. They watch the ebb and flow of the industry very closely in order to contract the best rates with the best trucking companies so they can pass on the savings to their customers.
Request a quote today to learn more about how working with a 3PL can save you time and money.