Freight logistics costs are on the rise across the nation. Here are several factors contributing to this recent surge.
Hurricanes Damage Infrastructure and Overburden Freight Logistics Companies
The recent surge in hurricane activity in Houston, Florida, and Puerto Rico is damaging to supply chain infrastructure. Some areas received over 60 inches of rain, while destructive winds lead to massive flooding, loss of life and destruction. The flooding inundated hundreds of thousands of homes displaced more than 100,000 people and prompted thousands of rescues.
Oil refineries were also negatively affected. This is leading to a shortage of fuel and increased shipping and transportation prices across the United States. The hurricane season isn’t over yet. This has lead industry insiders and experts to speculate on overall effects and market fluctuations.
FEMA Assistance Affects Freight Logistics
Following the devastation left by Gulf Coast hurricanes, FEMA stepped in and began offering aid and assistance to all affected areas. FEMA’s need for equipment, goods and drop off locations resulted in logistical congestion. Full Tilt was amongst many logistics companies called on to truck goods and equipment into the affected areas. This caused FEMA to actually begin utilizing our own trailers.
Some are still waiting for assistance from FEMA and the federal government is still in possession of our trailers. We are working hard to recover our equipment. FEMA’s use of our equipment is undoubtedly for a good cause; however, this does impact our business and the business of other dedicated transportation companies.
Carriers became aware of the need for additional trucks and equipment. As a result, some raised their rates by up to 30%. The high demands that the disaster areas placed on freight logistics companies resulted in a shortage of trucks and an overall increase in pricing across the country.
At Full Tilt, we kept our pricing at affordable levels. We choose not to take advantage of shipping rate hikes as a result of the devastation caused by the storms. We treat all parties fairly and with respect and value our long term business relationships. This is more important than capitalizing on a quick buck due to natural disasters. Our philosophy serves us well and contributes to our rapid growth as a company.
The Upcoming Holiday Season Places Stress on Freight Networks
As we enter the fourth quarter of the year, the demand for dedicated transportation and trucking services are on the rise. It’s the same story every year. However, this year (because of the economic recovery taking place) consumer confidence and associated spending is at an all-time high. As manufacturers are gearing up for what promises to be a robust Christmas season. The forecast is for increased need of dedicated transportation across the country. This places more demands on the freight logistics industry.
Carriers are gearing up for Q4. Right now there is a belief that this year’s demand for logistics carriers will outpace supply. Again, the increased demand and limited supply will create upward pressure on delivery pricing. Reliable logistics companies like FULL TILT plan this kind of contingency and have an established network in place to ensure a seamless transition between differing market conditions. We under promise, over deliver and at all times remain transparent with our customers.
Join the growing number of shippers who choose Full Tilt Logistics to help them solve their dedicated transportation needs. Contact us today for pricing and more information – it could be the best business move you’ll ever make.
