What Factors Impact Carrier Pricing?
For shippers, changes in carrier pricing can seem arbitrary, but usually that’s not the case. There are many factors that go into a carrier’s pricing strategy.
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For shippers, changes in carrier pricing can seem arbitrary, but usually that’s not the case. There are many factors that go into a carrier’s pricing strategy.
Read More…
Since March 10, 2014, fuel prices have decreased by $0.884 per gallon, resting at $3.137 as of January 5, 2015. Diesel prices, according to the U.S. Department of Energy (DOE) National Average index, have been falling, too. While lower prices at the pump probably bring welcome savings to your personal pocketbook, changing fuel prices impact the trucking industry in a different way, thanks to fuel surcharge programs. Read More…
I’m frequently asked by shippers for advice on which direction freight rates are going. I wish I could predict the future, but I can’t. However, it is possible to better understand the market mechanisms that drive rate fluctuations by analyzing available data. And one of the chief lessons is to not assume that rates always move according to a standard market average.
Historically, on average, pricing in the truckload market tends to increase by just over 2% a year. We know this because we reviewed the rate changes within a leading industry index. Read More…
The driverless truck is no longer a fanciful idea that will materialize in some future world. The technology has advanced rapidly over recent years, and I believe that we’ll see these automated vehicles on our highways in the near future. Here’s why.
When demand for a product or service outstrips supply, new technology often bridges the gap. For example, in the early days of the national phone system, the only way that the demand for capacity could be met was to phase out human operators and automate calls by adding dials to phones. Today, a shortage of human drivers is a major constraint on trucking. Automating the driver role solves this problem and creates more capacity. Read More…
Does your business fit into the carrier’s service network? Is your freight ugly or attractive? And how does that impact pricing? One of our recent white papers addresses these questions.
You’ve seen it before. You and your carriers agree on volumes, pricing, and service. You both feel good about the consistency and flexibility you will have, although you know your agreement is not a binding contract. But much can happen in the time that follows, factors that can render these agreements unsustainable. At such times, the better you understand what’s going through the carrier’s mind, the better prepared you will be to understand what could happen next with pricing, and what, if anything, you can do about it. Read More…