The driver shortage, government regulations and rising operating costs are some of the biggest challenges facing the transportation industry. The number of drivers is quickly decreasing, and the remaining drivers are demanding a salary raise. Due to these challenges, higher shipping costs are anticipated.
Rate increases will prove troublesome for manufacturers who are already taking extensive steps to reduce shipping costs. Many manufacturers are nearshoring and reshoring operations to avoid the costs of international shipping. Some manufacturers are redesigning product packaging to make their freight more attractive and cheaper to transport.