Trucking and freight are one of the backbones to our economy in the United States. The ability to transport freight and deliver essential and non-essential items throughout America is critical, especially as we all deal with COVID-19 both personally and professionally. Freight rates have hit historic lows as we have over capacity in trucking. Although truckers are putting their health and safety on the line, they are not getting fairly compensated despite keeping our nation safe and supplied with essential items.
Over Capacity in Trucking Driving Historic Lows in Freight Cost
The national average spot van rate hovered around $1.50 a mile last week, a four-year low despite improving freight volumes. Rates for refrigerated and flatbed loads hit their lowest points since early 2017, reported DAT Solutions, which operates industry’s largest load board network. The Owner-Operator Independent Drivers Association (OOIDA) sent a letter to Congress on May 6 urging immediate action to help truckers know they are being compensated fairly.
“The economic downturn caused by COVID-19 has resulted in significant over capacity in trucking. This has driven freight rates to historic lows,” OOIDA stated. “Truckers who have helped keep the nation safe, healthy and supplied, are now struggling mightily. Many small motor carriers and owner-operators are concerned their businesses will not survive the crisis.”
What does low Freight Cost Do for Your Supply Chain?
For your business, a reduction in freight rates can help your bottom line. But it is important to be very selective with what freight or cargo transportation company you select. Be sure to work with an established freight or trucking company. Utilize a freight service company that provides brokerage services and ideally has additional 3PL or logistics offerings. At Interwest Transportation, we have been providing leading trucking, freight, and logistics services for over 20 years. We are here to help you and your company navigate this time, improve your supply chain, and ensure the best value in the 3PL service, trucking, and freight delivery space.
If you have any questions, please contact us at contact@gointerwest.com. We offer the best practices in freight forwarding, warehousing and order fulfillment. We are strategically located in the heart of the west and offer industry leading facilities and customer service for any logistics need.
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