As the economy is digging out of a long recession, there appears to be no sign of weakening fuel prices, and more importantly, costs to move LTL shipments across the U.S.- Canadian border.

Slow business demand during the period of 2006-2009 kept rate hikes to lower than 2%, but it also shrunk the LTL freight industry. Approximately 3000 trucking companies shut their doors, and many others consolidated or joined forces to compete with the larger National LTL carriers. Now that business is picking up, there are fewer carriers available to haul these goods, thus creating a greater demand than supply and causing the rates to jump as high as 8-10% in many markets. The shift is changing from a buyers market to a sellers market….

Small companies have to be creative to remain competitive in the shipping arena. They need to find ways to consolidate orders, making fewer shipments with higher volumes to help keep their cost/unit down. Also, many small shippers turn to Freight Logistics Providers to handle their shipping requirements. Unless a company ships enough volume through a carrier, they will receive a nominal discount, if any at all. Freight Logistics companies pass their discounts on to the shipper, which in many instances is between  50-60%. It is also good business practice to reduce your carrier base and offer more business to your core providers to get the best pricing & customer service.

How is your company handling higher LTL prices?