Recently, Inbound Logistics published our article, “Scale to Meet Your Needs,” centered around the growing concerns shippers will face regarding carrier uncertainty and capacity fluctuations in 2020. At the beginning of 2019, with a solid 2018 in the rearview, many companies bought more trucks, more real estate for expansion, and hired more drivers. However, 2019 saw a dramatic shift in demand creating downward pricing pressure on carriers. With carriers facing increased capital expenditures, rising driver expenses, double digit insurance increases, and more regulations, nearly 800 trucking companies failed. According to transportation industry data firm Broughton Capital, this was 3x the rate of failures the year prior and consequently removed over 24,000 trucks from the marketplace.
So, how can shippers protect themselves against the growing uncertainty of the carrier/provider base in 2020?
Read Jake McLeod’s full article, “Scale to Meet Your Needs,” published by Inbound Logistics.