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Journal of Commerce: “US shippers guarantee volume to secure truck capacity”

July 18, 2018

US shippers guarantee volume to secure truck capacity


With the autumn peak shipping season fast approaching, capacity tight on the rails as well as roads, and the US freight economy looking strong well into 2019, there’s pressure to deal now. Truckload spot rates are easing in mid-July, but they remain at near-record highs.

“Shippers are willing to pay more to assure the fact that when they call, a truck is going to be there,” said Charles W. “Chuck” Clowdis, managing director of research and consulting firm Trans-Logistics Group. “They’re willing to assure volumes in order to ensure capacity.”

“Shippers are starting to do innovative stuff, trying to figure out what level of volume guarantee makes sense,” said Ben Cubitt, senior vice president of supply chain and transportation at logistics provider Transplace. “That’s in the early stages of development,” he said.

Retail penalties drive interest in guaranteed capacity

Read more here.