This article provides some interesting data underlining trends from 2016 that we fully expect to continue into 2017. We believe that this analysis is spot-on - our customers' volumes and activity support the view of a continuing rise in freight demand while capacity becomes increasingly constrained. The electronic logging device (ELD) mandate is going to exacerbate the capacity problem dramatically as we approach Q3, and will continue through the end of 2017. E-commerce activity has introduced a permanent change to freight shipping patterns at the end of each calendar year, and this places further upward pressure on freight rates. Our advice to our valued customers and to all shippers in the face of these trends:
- Choose your freight partners wisely: You want to partner with companies with longstanding track records. You need proven partners who have expertise in meeting load demands in a wide range of economic climates.
- Carrier network matters: You need to be connected with freight brokers who can complement your array of freight partnerships with an established network of reliable carriers. Any freight brokers you work with must have a stellar reputation with carriers, which is the key to sourcing trucks to meet your load needs.
- Plan ahead: Anticipate a continued tightening of capacity by mid 2017, and ensure that you're both forecasting your needs and also managing your network of partners to cover the spectrum of planned and spot shipping needs that you will have.
We'd love an opportunity to understand your business, your freight needs, and to discuss how we can help. Contact us to talk today.
See the full DAT 2017 Freight Outlook article for more details.