Truckload rates ‘tumbling’ in Q2, report says
Truckload rates will continue falling at a steep rate in the second quarter while less-than-truckload rates level, a report from a large 3PL asserts.
Truckload rates will continue falling at a steep rate in the second quarter while less-than-truckload rates level, a report from a large 3PL asserts.
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Volatility in trucking markets has prompted shippers to assess different ways of securing reliable capacity. For DG, that means more reliance on in-house transportation, but that’s certainly not the only option. Some retailers are looking to diversify their transportation partners to avoid delays and secure truck space. Others are debating streamlining their transportation needs by signing over their private fleets to logistics specialists.
The Container Store’s (NYSE: TCS) most recent earnings call details the reality of shifting to a greater mix of e-commerce sales at a time when transportation capacity is extremely tight.
Leaf Logistics CEO Anshu Prasad believes manufacturers of food and consumer packaged goods could be in jeopardy of missing earnings expectations as transportation rates remained elevated throughout the quarter.
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Shippers feel like they’re in uncharted territory even a year into an extremely strong trucking cycle, and they’re adapting in a number of ways, including building depth into routing guides, accepting lower service levels, and extending tender lead times.
Kellogg (NYSE: K) is the latest company to cite rising freight costs as a threat to profit margins in 2018, according to the Wall Street Journal. It also reported the far-reaching impacts of the trucking strike in Brazil in May 2018.