Low-Level, Double-Digit Increases In Truckload Contract Rates To Be Expected In 2021

Since the beginning of the year, countries have shutdown their borders. The transport of goods has been seriously affected creating serious challenges to Titan Transline and other trucking and logistics providers. Truck capacity used to be so abundant that shippers can choose which carrier they want for their freight. Now, truck capacity is at its tightest since 2018.

Shippers are warned about low-level, double-digit increases in truckload contract rates in 2021. According to truckload carriers, the forecast is about 10% to 15% increase. Although there are several complaints about poor service and high rates, shippers are more focused on securing the truck that they need. Service and rates are not at the top of their priorities but access to capacity.

There are claims of driver shortage but carriers are managing capacity without hiring more drivers. Container shipping lines were able to manage capacity this year through blank sailing. While this may be partly true, executives of motor carriers claim that lack of truck drivers is a real and growing issue. Much of the shortage can be attributed to the coronavirus because more than 30,000 truck drivers have been tested positive since January.

Drivers are an important component in the delivery of time-sensitive cargo to customers who are already stressed with low inventories. There are owner-operators of smaller trucking companies that have pursued high priced freight in the spot market and the numbers are increasing. Smaller trucking companies are normally not available for high volume shippers who want to rebuild their inventories particularly in the retail sector.

There is a record number of individual truckers and small fleets that are sitting on the side-lines waiting for everything to change. They are the bulk of capacity right now because they feel that prices have bounced back to a point where it worth their time to return to the market.

You can contact Titan Transline for less-than-truckload or dedicated full truckload to deliver your goods. Custom schedule is followed with no additional stops so that your goods will be safe and will arrive on time. Your dedicated load will be handled with utmost precision through state-of-the-art trucking equipment.