Freight demands are on the rise and this could mean higher rates for consumers. The increase in demand has unexpectedly risen very quickly; so quickly, that in some places you can't even get a truck when you need it. In other places, you can get trucks, but it's going to cost you. Truck capacity and equipment have been so greatly reduced that prices have risen up to 30% higher than they were just a few months ago.
Truckload capacity has been decreasing since the economy in Asia has been declining. We have experienced an increase in exporting in the US, but Asia has not yet begun to export. Therefore, the containers that are normally shipped back and forth are only being shipped out; not necessarily coming back for us to use.
Financing is difficult to come by right now for trucking companies, so only the strongest lines have been able to afford new trucks and containers. Many carriers are being forced to keep operating at minimal capacity while charging higher rates to take up some of the financial slack.
Analysts believe that the increases in export shipping demand represent viable, long-term, sustainable growth. However, smaller truck lines are still apprehensive about investing to meet the demand just in case this is a short-term spike.
Exporting has been increasing in the US as international trade with multiple countries has become more attainable by small businesses. The ocean shipping business has become an almost paperless industry with automated documents, tracking and updates available to consumers. Advancements in logistics and freight handling have made ocean freight shipping more affordable for smaller businesses.
These advancements have helped the small business owner in the US expand their horizons and trade with more countries. This increasing export trend has actually helped the economies in struggling countries to rebound from the global recession. Exports from Asia are slowly increasing, getting containers back to the ports where we need them to be.
Right now, many containers are stuck in rural areas. More containers are being produced to meet the demand, but it is expected to be about another year before the supply will be restored. Even then, we can't predict how many we will need at that time, so the problem of container shortage causing increased fees in the <a rel="nofollow" href="http://www.shiplilly.com/"title="Ocean Shipping">ocean shipping</a> and truck line industry may continue for quite a while. Shipping companies hope to continue to see these good equipment utilization numbers so that they can get can increase capacity and be well on their way to recovery.
About the Author:
About the Author: Nelson Cabrera is the Business Development Manager of Lilly & Associates International, a transportaion and logistics company specializing in ocean freight and ocean shipping services. For more information, please visit http://www.shiplilly.com/.
