Freight Rates staying down

It’s no secret that the global coronavirus pandemic and recent global political tensions has had a devastating impact on shipping and logistics. Many businesses have been struggling to cope with increased freight transportation costs due to disruption in global supply chains. Thankfully for shippers, freight rates have started to come down in recent months after a period of steady hikes and wild volatility.

This recent trend of decrease in freight rates is being driven by a number of factors. For one, many businesses have put a pause on their international shipping operations, resulting in an oversupply of capacity that’s pushing down prices. Additionally, truck drivers are taking more safety precautions in light of the pandemic, and this is also helping to alleviate some of the cost pressures.

At the same time, some larger cities remain in lockdown, and this has had the effect of decreased demand for shipping services. This has caused further softening of freight rates, especially for businesses that are still in operation. Furthermore, the high interest rates and skyrocketing inflation is probably the main factor affecting the global trade and manufacturing companies in USA and Canada.

Overall, the decreasing trend in freight rates is a welcome sign for businesses, who are now able to get better pricing for their shipments. Some companies, such as Amazon, are even offering free shipping options, making it easier for consumers to order goods from home. However, most companies will still need to keep an eye on prices and shop around to ensure they get the best deals.

It’s too early to tell how long this trend of decreasing freight rates will continue, but it’s a positive sign for businesses who are looking to optimize their shipping operations. By staying up to date with market conditions and understanding their options, businesses can take advantage of the current market and ensure they’re getting the best value for their shipments. Contrary, for trucking companies, this is a nightmare that continues for months trying to keep up with the costs.

If you are a shipper and want to compare how your shipping rates are in today's market, send us a quick email at [email protected]