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