According to a newly-released JOC whitepaper, the U.S. surface transportation market is changing rapidly under the influence of stresses that include a faster-paced US economy, changing consumer expectations, new technology, demographics, and government regulations.
Those factors combined in 2017 to tighten available truck capacity and push up rates and pricing as the second half of the year unfolded. More highlights:
- All respondents to a recent JOC survey believe trucking rates will rise, but logistics service providers expect
higher and broader rate increases than their shipper customers, including higher
- Truckload capacity has already tightened considerably from 2016, and will only get tighter in
2018. Again, shippers and LSPs differ over just how tight capacity will get in the next year.
- Nearly three-quarters of LSPs plan to increase technology spending, compared with
only 37 percent of shippers, suggesting shippers are turning to logistics partners for
- Logistics providers believe shippers are unprepared for changes the electronic logging
mandate will bring to supply chains.
Read more here: The Road Ahead