Freight Shipping Market Volatility and Confusion Reign

Freight Shipping Market Volatility and Confusion Reign

The freight shipping market is a reactive industry. Freight carriers can’t create demand, they just react to it. When the economy is as strong as it was in 2018, demand is high, capacity is low and rates rise. In addition to a strong economy, 2018 was notable for introducing Electronic Logging Devices (ELDs). The creation reduced capacity and the shortage of new heavy-duty freight trucks.

The Freight Shipping Market of 2019

 

2019 is a bit of a different story, as is often the case following a boom year.

  • Truck manufacturers built more Class 8 trucks than the market could absorb

  • Manufacturing is down, so shipping of manufactured products has declined

  • Exports of agricultural goods have declined, along with the shipping of those products

Freight Shipping Market Volatility and Confusion Reign

 

The result of these three market forces is a very confusing freight shipping market.

More trucks mean increased capacity and a lowering of demand. This led to a slight lowering of spot rates for truckload shipping. Even while carrying more volume than ever.

Some carriers thought the good times would last forever and took on too much debt to buy new trucks, more than they needed in some cases. They weren’t ready for the worst when rates fell. Not able to handle their debt and was run out of business.

Meanwhile, DAT Market Analyst predicts that spot rates will be on the rise in the second half of 2019. This will average somewhere between 2017 rates and the peak rates of 2018. They may be right, but with market conditions like this, what will happen next is hard to predict.

What’s A Shipper to Do?

 

When facing an uncertain freight-shipping future, the best thing a shipper can do is rely on a 3PL. With plenty of experience and extensive LTL and Truckload, shipping carrier networks use FreightCenter.

Relax, We’ve Got Your Shipping Covered

 

With our extensive, fully vetted carriers, we’ve got your shipping covered. Most FreightCenter customers probably didn’t even know that the freight-shipping market was going through such a turbulent time, because we always make shipping easy and affordable. So, if you’re already a FreightCenter customer, feel free to pat yourself on the back (high-fiving yourself might be easier) for choosing a stable leader in a sometimes-volatile industry.

If you aren’t a FreightCenter customer yet, this is the perfect time to see how we can help your business ship more efficiently. Start with us by getting a free freight quote or talk with one of our National Account Managers (shipping experts) at 800.716.7608.

Instant Truckload Rates
Shipping option
Pickup/delivery information
Shipment information
Do you know the freight class?
Pickup/delivery information
Shipment information

limit of 70 characters

trust pilot reviews
What our customers are saying

We provide competitive freight shipping prices and an all-inclusive, easy-to-use shipping experience for our customers. Exceeding our customers’ expectations results in thousands of satisfied customer reviews and repeat business. We believe in the power of our customer relationships. Check out FreightCenter reviews from real customers, and learn what they have to say about their freight shipping experience!

prev
I would recommend Freightcenter.com to anyone.

Working With Jennifer Rendine has been super easy. I know that every detail will be taken care of with each and every shipment. I would recommend Freightcenter.com to anyone. 5 Stars!

J
Jeff
rating rating rating rating rating
It was very easy to do and priced right

It was very easy to do and priced right . The people I talked to were very friendly and helpful !

N
Neal
rating rating rating rating rating
It was a great experience.

It was a great experience. Everything went very smoothly. My customer service rep was exceptional!

D
Deb
rating rating rating rating rating
Thank you Freight Center for the good job.

I have used Freight Center for 3 different pickups and so far everything has worked beautifully. I would highly recommend their services and the pricing is very competitive. Thank you Freight Center for the good job.

D
David
rating rating rating rating rating
Great service and lowest price.

So happy using FreightCenter. Great service and lowest price. My go to shipper from now onT!

TR
Tom R.
rating rating rating rating rating
Easy to work with

Easy to work with. Scheduled on line and then a CS rep called us to make sure all the details were in order to ship our product correctly to the customer.

MG
Melissa G.
rating rating rating rating rating
next
Let’s Get Started! Compare shipping rates in an instant!
Get a Freight Quote