📊 Operational Costs During Freight Recession: A Deep Dive In 2023, the overall marginal costs in the trucking industry hit $2.270 per mile. Non-fuel costs surged 6.6% to $1.716 per mile, and truck insurance premiums soared by 12.5% to $0.099 per mile. 🔍 What's Driving the Increase? 📈 Rising Equipment Costs: Truck and trailer payments increased 8.8% to $0.360 per mile. With ongoing supply chain issues, a price downshift isn't in sight. 💵 Driver Wages Accelerate: Paychecks rose 7.6% to $0.779 per mile. This is great news for drivers, but it tightens the belt on carriers. 🔧 Maintenance Costs Creep Up: Repair and maintenance expenses increased by 3.1% to $0.202 per mile. In this tight market, every penny counts. ⚙️ Operational Headaches: Deadhead mileage reached 16.3% for non-tank operations, and driver turnover continues to climb. 💰 Profits in the Slow Lane: With freight rates stagnating, most fleets are experiencing razor-thin margins. As ATRI President Gregg Troian says, "The current economic environment makes cost management essential to successful operations." 📈 How is your fleet managing these rising costs? Share your strategies and insights Partnership you can count on 🌎 www.clevertransco.com 📞 602-325-8282 📍 3883 N 36th Ave Phoenix, AZ 85019 United States #clevertransco #freightforwarding #supplychain #consolidatefreight #truckload #truckloadstrategy #cargo #logisticssolutions #3PL #freightbrokarage #logisticscompany #transportation #supplychaintransparency #logisticssolutions #logisticsnetwork
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The logistics industry is buzzing with changes. A recent article dives into the shift in freight transportation and highlights some misconceptions. Myth: All shippers prefer less-than-truckload (LTL) services because they are always the cheapest option. Fact: While LTL can be cost-effective for smaller shipments, many shippers turn to full truckload (FTL) services for time-sensitive deliveries or larger volumes, prioritizing speed and efficiency over price. Myth: LTL shipping and FTL shipping are interchangeable. Fact: These methods cater to different needs. LTL is ideal for smaller, less urgent shipments that can be combined with others on a single truck, while FTL is the go-to for large volumes or critical timelines. Understanding these dynamics can empower businesses to make more informed shipping decisions. This shift represents not just a trend but a re-evaluation of how we approach freight logistics in a fast-paced market. https://lnkd.in/giaxuuXa
LTL carriers report shippers shifting freight to truckload
truckingdive.com
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Great to connect with Karen Kroll and Inbound Logistics on the dynamics between shippers and carriers in today’s challenging freight market. It’s so important that both sides are sensitive to the realities of the other as they strive for long term, mutual value creation. Long term OTIF success is built on strategic relationships, not transactional short term thinking. https://lnkd.in/eFYiiFdr
Sealing the Deal: The Art of Balanced Shipper-Carrier Contracts
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Full truckload freight shipping can be complex, but that doesn’t mean it has to be a headache. At A.N. Webber Logistics, we’ve identified 7 common challenges in #FTL shipping and developed strategies to overcome them in any market. From capacity constraints and unpredictable costs to tight delivery schedules and communication breakdowns, these challenges can disrupt operations and impact efficiency. But with the right logistics service provider like A.N. Webber, you gain a partner who understands the market's nuances and delivers solutions that keep your freight moving. Learn more about how we help businesses overcome FTL shipping challenges and keep their operations on track at https://lnkd.in/gmCTPgH3.
7 Challenges in Full Truckload Freight Shipping and How an LSP Overcomes Them In Any Market - A.N. Webber, Inc. Logistics
anwebberlogistics.com
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The freight market is still suffering with higher rates of 3rd party logistics companies across the country continuing to have to sell off fleet assets and close shop. The question continues to remain of "when will the market finally be stable again?" with answers still seeming to be no where in sight. "2024 should be a steady year" states VP & GM of freight brokerage and transportation management at Ryder System Inc, Kendra Phillips. “Right now is our year to take a step back, take a deep breath and position ourselves appropriately in the market.” Read more about the current market state below: https://lnkd.in/gybmEfxb
When Will Freight Market Conditions Improve? | Transport Topics
ttnews.com
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In the trucking world, staying adaptable is crucial, especially with the ongoing challenges in capacity. An interesting trend highlighted recently is how shippers are increasingly finding value in offering flexibility to their carriers. This not only helps with managing schedules but can also contribute to overall cost control. It makes one think about how we've had to adapt our own logistics over time. Have you noticed this trend in your shipping operations? Let's discuss how we've all navigated these changes together. 🚚💼 https://lnkd.in/ghfXc7a2
8 Effective Strategies to Streamline Your LTL Freight Operations | Red Arrow Logistics
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When carriers are raising rates, shippers basically have two options. Option A is to just sit back and let your budget balloon out of control when your company gets hit with peak season parcel surcharges, escalating LTL rates, or other cost increases. Option B is to take a step back and ask: Is there a strategic and better way to manage the flow of freight into and out of our company? Read more in this week’s blog: https://hubs.la/Q02KvQhF0 #Logistics #LogisticsManagement #SupplyChain #SupplyChainManagement
The Secret to Lowering Freight Costs Even When Carriers Are Raising Rates
blog.tranzact.com
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2025 freight rate increase update: Covenant Logistics, a truckload carrier, plans to raise freight rates in small increments. 2% to 3% in the current bid season and another 2% to 3% mid-year, per CEO David Parker. Of note, in 2024, the carrier raised spot rates a half-dozen times in Q2 & Q3 alone. Perhaps because of the continuous spot rate increases, the company is gaining more contract customers, which reduces exposure to spot-rate volatility for shippers and the carrier. https://lnkd.in/g3QGrJWN #freightrates #shipping #trucking #freight #logistics
Covenant Logistics plans more rate increases for 2025
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Shippers and carriers have different priorities, but still need to find a balance so they can successfully craft contracts that meet each parties' needs. Want to know one thing to keep in mind according to our Management Consultant Shaun Rheeder? Knowing over-the-road market rates and trends. He shares more on this and other key considerations for balanced shipper-carrier contracts in Inbound Logistics. https://lnkd.in/gmfUXMxM
Sealing the Deal: The Art of Balanced Shipper-Carrier Contracts
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🚚 Unlocking Efficiency: Why Choosing a Freight Broker Trumps Individual Asset Carriers 🚚 In the dynamic realm of logistics, making the right decisions can make or break your supply chain efficiency. When it comes to transportation management, opting for a freight broker over individual asset carriers can be a game-changer. Here's why: 1️⃣ **Access to Diverse Capacity**: Freight brokers have access to a vast network of carriers, spanning various modes of transportation and geographic regions. This means you're not limited to the capacity of a single carrier but can tap into a pool of resources tailored to your specific needs. 2️⃣ **Cost Savings**: By leveraging their extensive network and industry expertise, freight brokers negotiate competitive rates on your behalf. This can result in significant cost savings compared to dealing directly with individual asset carriers, especially in volatile market conditions. 3️⃣ **Efficiency and Flexibility**: Freight brokers streamline the logistics process by handling everything from carrier selection to freight tracking and documentation. This frees up your time and resources, allowing you to focus on core business activities while enjoying the flexibility to adapt to changing demand and market dynamics. 4️⃣ **Risk Mitigation**: Partnering with a reputable freight broker mitigates risks associated with carrier reliability, capacity constraints, and regulatory compliance. They conduct thorough due diligence on carriers, ensuring that your shipments are in safe hands every step of the way. 5️⃣ **Technology Integration**: Leading freight brokers leverage advanced technology platforms to provide real-time visibility and analytics, empowering you with actionable insights to optimize your supply chain operations and make informed decisions. In an increasingly complex and competitive landscape, choosing a freight broker offers unmatched agility, cost-effectiveness, and peace of mind. Don't settle for the limitations of individual asset carriers—unlock the full potential of your logistics strategy with a trusted partner. #Logistics #FreightBrokerage #SupplyChainManagement #Efficiency #Innovation Q-Line Trucking https://lnkd.in/gCyhwHAv
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Its that time of year again! Are annual LTL rate increases putting pressure on your transportation budget? You're not alone. Many businesses face rising costs in less-than-truckload (LTL) shipping, driven by fuel surcharges, labor expenses, and capacity constraints. One solution to counteract these increases is consolidating multiple LTL shipments into full truckload (FTL) shipments. Here's why this strategy makes sense: ✅ Cost Savings: Combining LTL shipments into a single truckload can significantly lower per-unit shipping costs by maximizing trailer utilization and avoiding high LTL fees. ✅ Improved Transit Times: Consolidated shipments typically follow a direct route, reducing handling and transit time compared to traditional LTL that moves through multiple terminals. ✅ Reduced Damage Risk and W&I: With fewer touchpoints, your products are less likely to be damaged or delayed, enhancing customer satisfaction. ✅ Environmental Impact: Fewer trucks on the road mean reduced fuel consumption and lower carbon emissions—a win for your business and the planet. This option is not for every shipper! You need to identify your top receivers, where they are located and IF shipments can be strung into a multi-stop route. If you're considering optimizing your supply chain with consolidated shipping, let's discuss how our team at Hermann Services can help you make the transition smoothly and cost-effectively. Have you tried this strategy, or are you interested in learning more? Let’s connect in the comments or via direct message! #Logistics #Hermannservices #Shipping #Transportation
LTL general rate increases buck pricing concerns for industry
freightwaves.com
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