The demand for shipping this holiday season is expected to be stronger than ever. In fact, demand for shipping has been strong this year and this is all due to the current economy, which is really quite strong. Throughout the holiday season the trucking conditions should be in favor of carriers.
2018 Holiday Season Capacity Outlook
Capacity
When it comes to truckload shipping, one of the issues that many companies are running into is simply that many carriers do not have the capacity to hold all of the shipments that they need to deliver. In fact, carriers have been rejecting loads and also increasing the rates. It has been a shipper’s market for around twenty years and now the tides have finally turned in favor of the shipper.
Full Truck Utilization
Trucking capacity is on the rise and has grown about four percent since April. However, truck utilization is at 100 percent. This demand is not likely to slow, but by improving productivity and putting new trucks on the road should show some improvement in the numbers.
Improved Container Volume
In addition, the demand for container volume has been on the rise as well. There is research that shows that outbound loads paid more than inbound loads by nearly 12 percent. Dry van rates across the country have increased by more than 30%. The pattern for this is likely because of professional retailers ordering things to stock their shelves before the holidays and are now moving these products around the country using land. These are strong indicators that the holiday season ahead is going to be quite good overall.
Overall, the holiday season 2018 should be a good one as there are plenty of people ordering products and wanting them delivered before the holidays point to a strong season for truckload shipping companies throughout the country.
Christopher Morgan Fulfillment
Christopher Morgan Fulfillment has access to more than 600,000 square feet of professionally managed, secure, dry storage space, warehousing & distribution in Milwaukee and in all regions of the United States.
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