Word came this week from the American Trucking Associations that truck tonnage (or the amount of freight hauled by motor carrier domestically) fell 2.4% in June and was 13.6% lower than truck tonnage from June 2008. There had been an increase reported in May. The mixed message has had some economists scratching their heads.
Ultimately, what this means is that less product is being shipped right now due to the less-than-favorable economic conditions. Job losses and tight credit have negatively affected household spending and business profits.
ATA’s chief economist suggests that, at least for the near future, many new product orders can be fulfilled with current inventories, not new production, keeping trucks empty.
One industry insider even commented that “freight availability remains at historically low levels and pricing competition has been fierce as excess tractor capacity, buoyed by lenient lenders and lower fuel prices, continues to exist in the marketplace.”
While all of this sounds fairly depressing, it is an enormous savings opportunity for shippers. Excess carrier capacity results in dropping freight costs for consumers as the carriers compete for their business. Freightquote.com, long successful at helping shippers’ comparison shop between carriers, has responded to the current situation by implementing a broad platform of enhancements to its systems.
As a result of Freightquote’s series of improved technology, operations, and customer service, shipping quotes received through Freightquote are now even more cost-effective, timely, and accurate. The result for Freightquote has been a substantial increase in traffic despite the industry downturn, especially in the truckload shipping area.
Freightquote’s pioneering technology gives customers the most competitive and accurate truckload pricing every time. And Freightquote’s position in the industry allows it to negotiate far better freight prices than most small- to medium-sized businesses might otherwise be able to achieve
Truckload shipments booked through Freightquote have more than doubled recently as a result of the company’s response to the industry downturn and excess capacity. Its customers have been pleased in the results of these efforts and have shown their appreciation by booking more freight shipments on Freightquote than ever before.
Freightquote has long been the freight industry’s leading provider of web-based freight transportation management services. Its spot-on analysis of the market and its reaction to the sluggish industry have not only solidified Freightquote’s position at the top but also created continued growth in an otherwise gloomy global economy.