Trucking costs start with a carrier’s rate, but if that’s your primary consideration you are probably leaving money on the table.
In a fast-changing business environment, the pressure to deliver on ever-increasing consumer expectations while managing complex supply chains can be daunting. Readily finding and using the lowest-cost motor carrier can seem like an easy way to take some of that pressure off logistics managers, but any savings can be illusive.
Indeed, trucking costs are rising. According to the Cass Truckload Linehaul Index (https://www.cassinfo.com/freight-audit-payment/cass-transportation-indexes/truckload-linehaul-index) January 2019 marked 17 straight months of truckload price hikes. Rate pressures were seen easing somewhat in the first quarter of 2019 due to increased motor carrier capacity, normalization of last year’s Hours of Service clampdown, and other factors. Nevertheless, most observers expect rates to remain high for the balance of this year.
It’s tempting to look for a simple solution, to approach trucking costs as just finding a driver and a truck that can move your shipment from point A to point B. “If it were so easy,” says Tim Kolb, branch manager, ArcBest, “none of this would be all that complicated.”
Please CLICK HERE to download the whitepaper.