How to take advantage of today's market while planning for the future.
January 3, 2020
Throughout 2019, the freight demand has stabilized, allowing shippers to re-evaluate pricing and providers. While this is a stark contrast to the not-so-distant days of the capacity crunch, it has been a more than welcome change for shippers. This shift has prompted the ability of shippers like you to focus on quality instead of working through routing guides.
It’s always important to keep in mind that the market may turn on a dime. With outside factors such as severe weather, seasonality or surges in demand, the possibility for market fluctuations is always present. In order for you to continue to hit your goals and budgets, you will need to know how to take advantage of today’s market while also preparing for the future.
Let’s take a closer look at how to anticipate and get ahead of capacity crunch headaches and how Freightquote by C.H. Robinson can help.
A glance at the current market.
This year has not been difficult for shippers to find available capacity. In fact, carriers grew in 2018 to meet demands. This has contributed to an oversupplied market overall. It is important to note, though, that multiple variables have created this friendlier shipping market. Everything from the slowdown in the housing market to a decrease in manufacturing tariffs has contributed to the abundance of capacity we’re experiencing today.
As you plan your shipping strategy around the holidays, produce and back to school seasons - as well as seasonal spikes in demand - you may not be accounting for how much a retail boom, weather-related event or change in policy could impact your business.
Anticipating challenges for shipping truckload freight.
Small efforts such as greater driver appreciation (access to lounge areas, restrooms, etc.) or more streamlined communication can truly make you stand out from the shipping community and set you up for success when the market starts to turn. This is especially relevant for small to medium-sized businesses, as any effort they can make can go a long way in saving them time and money when market conditions change.
Historically, peak seasons have always been disruptive. The last several months have not lived up to this trend. The current supply of equipment has absorbed the excess demand. It is critical that you do not fall into a false sense of security because of the current state of freight. The slightest disruption in the current market could send us back into a 2018-like state when capacity was very limited, and demand was extremely high.
Take note of what your new hurdles are within this shipping market and think about what you can do to stay ahead of the cyclical market. If you do not have a game plan in place for when you encounter a roadblock, you could be left scrambling.
Why evaluating your pricing and service levels are a good idea now.
When capacity is abundant, freight rates can be low. One of the most important things to remember here is that this may not always be the case. Again, a multitude of outside forces could set you on a completely different path than you were anticipating.
The time is now to be evaluating your truckload freight strategy. Doing so will help ensure that you are positioned to achieve your goals. Market shifts come with plenty of headaches, but your truckload strategy can be less impacted by doing some of the things highlighted above.
What can Freightquote do for you?
Here at Freightquote by C.H. Robinson, we will make sure you’re aware of market shifts and respond as quickly to your needs as possible. We work hard to be your trusted advisor and will do whatever we can to earn your business. Since we offer 24/7 insights, you’d be receiving quality visibility in real time. Be sure to take advantage of this so that we can make sure your needs are always translated into solutions.
We know that visibility is a top priority for shippers. When you decide to work with Freightquote, you will never have to worry about where your freight is. You will know where your load is and how to plan your production schedule.
To begin scheduling your next shipment, click here, and we can get you started.
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