Navigating the Current Soft Trucking Market
The trucking industry in North America plays a crucial role in supporting businesses, customers, and the economy as a whole. Just like the economy though, there are periods of excess demand and supply.
The state of the trucking market is determined by the prices on load boards and spot tender bids. When the market is tight, and there are more shipments than available trucks, the prices and bids go higher than average. On the other hand, in a soft market, there is less demand, creating a surplus of available trucks, and lower carrier rates.
When Do Soft Markets Generally Occur?
Soft markets can be somewhat seasonal, with the market generally experiencing lower demand in the spring and summer and higher demand in the fall and winter. However, it is also largely impacted by general economic trends. For example, when gasoline prices rise, more companies may opt for rail transportation, creating a softer trucking market.
What Happens in a Soft Trucking Market?
During a soft trucking market, it is easier to find a carrier for your shipments. The supply of trucks becomes greater than the demand for shipping loads, creating a significant advantage for businesses, as they can negotiate better rates, improve their profit margins, and potentially expand their business.
Understanding the differences between a soft and tight trucking market provides businesses with an edge over the competition, but it is easier said than done. And without a clear understanding of the market and average pricing, you can end up paying more than you should.
At Overseas Container Logistics, we analyze historical financial data, available transportation options, and current seasonal trends to help businesses leverage soft markets to their advantage. Contact us today and we can help you use a soft trucking market to your benefit.
Overseas Container Logistics (OCL) is a 3PL commercial freight-forwarding company based in Richmond, British Columbia.
If you have any questions about this article or would like to talk to us about your transportation and freight needs, give us a call at 604-295-8236.
