Working with rising rates throughout the holidays and beyond.
December 27, 2019
As we enter into the holiday season, we are beginning to see a rise in truckload rates in tandem with demand for capacity. While rates tend to peak during the holiday season, current market conditions are expected to continue into the new year, with freight rates forecasted to increase into 2020 as well. For small to medium-sized businesses (SMBs), rising rates tend to be a cause for concern because they deal more with smaller supply chain budgets than larger organizations do.
Let’s take a look at why holiday rates are rising, and what this means for the freight industry.
Factors impacting rising rates.
This year, market adjustments were a major reason for holiday rates rising. The first half of 2019 saw a large number of trucking companies leave the market due to a lack of demand. As it relates to the holidays, the increased demand for capacity has begun to push the market in carriers’ favor, resulting in rates rising. While there are currently still enough trucks on the road to keep up with demand, we can expect rates to continue going up as more shipments are being scheduled.
What this means for your shipping strategy next year.
While rates typically begin to lower after the holiday season, heading into 2020 they are expected to continue increasing due to this market adjustment. Analysts are projecting that the coming year will be very similar to 2017, with carriers having a stronghold on the market. This will result in truckload capacity becoming more difficult to secure and lead to a decrease in the quality of shipments.
How Freightquote can assist you in 2020.
For SMBs, securing capacity is only going to become more challenging in the new year. With rates continuing to rise, it is essential that you begin building your 2020 shipping strategy as soon as possible. Here at Freightquote by C.H. Robinson, we provide you with tools that help simplify the shipping process, allowing you to ship with confidence throughout the coming year.
Partnering with Freightquote gives you access to high-quality, vetted carriers, so you can find the freight option that best meets the needs of your business. Furthermore, our self-service tool allows you to instantly compare rates, ensuring that you don’t overpay for capacity. The resources we provide you with are backed by the information advantage of CH Robinson, so your shipments will always be of the highest quality. Additionally, we provide you with proactive shipment alerts so you can easily track your freight throughout the shipping process, and keep customers informed with real-time updates.
Heading into the new year.
While truckload rates will likely rise into the new year, partnering with Freightquote will ensure that you can optimize your shipping strategy, giving you time back to focus on other aspects of your business. Use our easy self-service shipping tool to get started planning your 2020 shipments.
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