For the US Postal Service, today (12/15/15) is the last day that standard shipping services will make your package arrive in time for Christmas. In the freight world, similar deadlines are here. Standard LTL service can take 5 - 8 business days from coast to coast, which means that shipments headed to retailers, wholesalers and distributors who want to make that product available to buyers in time for Christmas must be on trucks soon.
The Cass Freight Index reported that domestic shipping increased almost 3% in January, based on data from $22 billion in annual freight transactions, spread over 350 large shippers. A likely downside for the domestic shipping industry this year is having too much business and not enough capacity. The data in the Cass report indicates that the ability to control rates will continue to move in favor of trucking companies, a noticable shift from the industry just a year ago.
According to Estes, the nationwide LTL carrier, a stronger US economy is leading to stronger earnings and a busier season for LTL carriers. Estes is the largest privately-held LTL trucking company in the United States and the sixth largest LTL carrier overall. Their management is so confident that the strong numbers will continue, that the company purchased 980 tractors this summer.
Many companies who ship large volume shipments or full truckload shipments are unaware how easy and advantageous it can be to move freight via rail. Most of the main rail freight providers in the US offer door to door service, not just boxcar and bulk services. Rail freight can be significantly cheaper than moving freight by truck, and because of the operational stability of railways, shippers can avoid equipment shortages and increased rates during certain seasons.
The trucking industries in the United States and Canada are linked to each other. In other words, shipping policies in one country might impact the shipping industry in the other country. For years, Canadian truckers traveling across their country from West to East might have chosen to travel along the highways in the United States.
