Transportation rates are near their lowest point and are expected to rise later this year. New forecasts predict rising contract and spot market rates caused by numerous economic and regulatory factors - which will create tough conditions for shippers to negotiate rates. Shippers who don’t lock down rates now could miss out on a great opportunity.
Pricing Conditions are Great for Shippers – For Now
Larry Gross, a partner at freight transportation consultancy FTR, says, “We are now experiencing the first sustained period of favorable shipping conditions since 2009.”
Right now, and the next couple of months, are the best time for shippers to lock in low transportation rates. FTR’s latest Shippers Conditions Index (SCI) reveals just how good things are for shippers today. The most recent score, 4.7, released in February, shows a favorable environment. When the SCI reports negative numbers, it represents an unfavorable environment. The index reported a 4.3 in January, which was up from 3.0 in December, -0.6 in November, and -3.1 in October.