LTL-Carriers-Need-To-Boost-Volume
March 10, 2008
Many of the nation's leading LTL carriers have seen a substantial hit to their stock prices over the past few months. YRC stock (Roadway, Yellow Freight) is way off last year's highs. Experts believe the main reason for this is the obvious reason - the economy is trending towards a recession.
"There is no question that LTL carriers are looking for good freight to haul," explains Reif Garret, a logistics consultant for small to mid-sized businesses. "Still, at the same time, for smaller freight shippers the LTL carriers might not be so excited about giving great discounts for lower volume. This is where the Internet freiqht quote comparison sites, like FreightClick.com, can come in handy. They have the expertise to be able to leverage changes in the economy for better pricing for their LTL freight shipments."
If the economy continues to show weakness, carriers will likely continue having trouble filling up their trucks. This can spell better pricing for customers in the short term. But, it can also be a double-edged sword, and a recession could force some carriers to go out of business, thereby reducing system capacity. When the economy turns up again, this capacity will be needed but will be unavailable. The resulting shortage of supply will cause prices to go higher, increasing freight shipping costs for LTL loads.