Freight Pricing Trends For 2020

Freight Pricing Trends For 2020

A
by Alan Jackson — 1 year ago in Supply Chain Management 3 min. read
1892

Freight price changes continue around the world. According to Darren Dodson of Material Handling and Logistics, the state of e-commerce will drive the majority of freight rate changes as more than 8.6 billion packages make their way to US customers in 2020. Increased visibility, improved efficiency, and faster service, the traditional demands of the supply chain market, will also force freight pricing to increase the 2020 trend. However, recent events surrounding coronaviruses and the possible disintegration of the supply chain help keep carriers competitive and shippers help maintain freight control. Let’s focus on the risks that affect freight pricing 2020 trends, what they can mean, and shippers stay active.

Several risks continue for global risk pricing

Global Freight Pricing Trends For 2020 indicate that the market will continue to have further volatility. Although the United States is on the verge of a trade deal with China, uncertainty remains. Even if a trade deal is agreed to by both parties, the grueling process of ratification by Congress has to be endured. With 2020 being an election year, the need for such ratification will make the country more polarized. In addition, the changing landscape of consumer demands will force supply chain leaders to rethink basic strategies and logistics ventures to counter the costs and impacts of e-commerce. And, SKU proliferation will still continue. Not all risks can be listed in one article, so supply chain leaders must start thinking about fundamentally developing their technology to meet the changing landscape and add value.


Global Shipping Trends: What to Expect in 2020

“Substantial investment in engineering and transport platforms are still accelerate upon the business. These expanding technological advances will continue to generate value throughout the supply chain.

While that opens new choices for shippers and carriers alike, you will likely have to spend additional time exploring that technology choice would be the ideal match for your organization. After all, the ideal technology provides tailored, market-leading options that operate for supply chain specialists and drive chain results ”

Freight Pricing Trends For 2020 Foreshadow a Rollercoaster of Changes

Goods pricing in 2020 will include data-based decision making and the need for a careful balance between both contracted and spot freight. These trends include:

  • Shippers want a higher freight bill audit and accounting process.
  • Data management and application costs will drive freight pricing 2020 trends to breaking point.
  • Day-to-day data control will become king.
  • Accuracy is the new gold standard of pricing.
  • The digital supply chain twin will become more mainstream and critical to success.
  • The truck load contract rate was expected to increase by mid-year, William B. of JOC.com Cassidy explained.
  • Spot rates were rising upwards, which led to the market moving in favor of the consignors.
  • Coronavirus and new threats will drop freight pricing 2020 trends.
  • E-commerce will continue its expansion into large, heavy goods, forcing more and more carriers to adapt and take advantage of multi-modal shipping to remain competitive.

The Impact of Freight Pricing Trends on Shippers

Now, on impact and mitigation strategies, shippers can take advantage of keeping freight expenses under control.

  • The coming year will bring more visibility through more systems and implementations to promote transparency and traceability. Blockchain will also give a big splash in the supply chain this year.
  • Freight carrier and logistics report, price competition between carriers will increase. Instead of shaking more carriers, in 2020 there will be a resurgence of stronger carriers capable of meeting demand, especially as more shippers leverage technology to stay active.
  • Rising costs of operations will force ships to think about logistics strategies. Leverage technology will not yet mean full force implementation of robotics and drone delivery. However, these technologies will become a focal point for future development. As a result, shippers will make necessary corrections to future-proof their organizations against them.
  • As the distribution chain moves to concentrate more on past mile, the function of value-added providers will rive more decision making and allow competitive advantage through improved support.
  • Service, not price, will eventually be the key force among clients making buying choices. While clients appreciate a deal, they’re rapidly becoming prepared to invest more for improved support and delivery.
  • Client service must currently rely on facts and data, not assumptions. Period.
Also read: Best CRM software for 2021

Future-Proof Your Organization with Freight Pricing-Adaptive Process and Logistics Management Strategy

The 2020 trend of freight pricing in the market will be seen in the overall rollercoaster of rates. Spot rates will flow and flow in response to the coronovirus. LTL freight may decline as shippers look to tap the value of FT, but will reborn as more shippers look to use consolidation strategies. It is an endless path to change, and with the right technology and strategy, your organization can and will remain competitive.

Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Copyright © 2018 – The Next Tech. All Rights Reserved.