As we’ve posted before, things are constantly changing in the trucking and transportation industries. One way for us to keep up to date and predict future trends is to look at what is happening now in the industry. Below are the most recent and interesting trucking industry trends.
1. As the west coast port issues are subsiding, shippers are expected to shift volumes from airfreight to ocean freight. The current airfreight volume strength appears to be only temporary.
2. The volume expectations are slowing from last quarter. They are at the lowest level since 2010.
3. The small package/express pricing is expected to improve from last quarter. More shippers are seeing an impact on the DIM-weight pricing that was recently implemented by FedEx and UPS.
4. Rail pricing forecasts are at the highest level since 2007. Rail pricing is now the highest of all transport modes again.
5. Intermodal pricing expectations are at the highest they’ve been at in four years. However, the expectations for the intermodal share gains are slowing. They are at the lowest levels in five years.
6. LTL pricing is expected to decelerate this quarter. This pricing slow down is due, in part, to shippers seeing more balanced capacity more often.
7. Recently 60% of shippers cited tight TL capacity. Last quarter 95% of shippers cited a tight TL capacity. Last time there was a sequential drop this large was in 2006.
8. Shippers are expected to continue to grow in dedicated TL and ground parcel volumes. There is expected to be continued in-sourcing to the U.S., but there is expected to be less near-sourcing to Mexico.
9. Freight budgets are expected to decelerate due to the lower fuel surcharges and volume expectations. Even with the lower volumes and fuel surcharges, shippers are still expecting increases in the base rate prices this year.
10. Rail is continually seeing cost pressures. However, fewer shippers are seeing capacity constraints with rail.
These are just a few of the most recent trends in the trucking industry. For more information, please contact us.