January 20, 2025
Truckload pricing began to rise sharply around Q2/Q3 of 2020. Over the next two years, truckload rates surged by nearly 50%, exerting economic pressure on the supply chain. This increase directly impacts the price of goods, especially produce.
Before 2020, a truckload from California to Boston typically cost $8,000. By 2021, this rate increased to $12,000. For a $40,000 truckload, the landed cost went from $48,000 in 2019 to $52,000 in 2021—a 9% increase in just two years due to rising economic pressure on the trucking industry.
Since 2023, freight rates have dropped sharply. The cost for that same truckload is now around $8,500. However, this drastic decrease has led many transportation providers to shut down. The current market conditions are simply not sustainable.
This reduction in rates, however, may not last long. As demand increases, the trucking industry could face renewed economic pressure, potentially leading to another price surge. The cycle of economic stress in the transport sector remains a key concern.
As the economy grows, supply chain pressures could intensify, making it harder to keep up with demand. This economic strain may cause another steep jump in prices. Landed costs could increase by 10% overnight, which will inevitably affect consumers. Unfortunately, it is the consumer who will bear the brunt of these rising costs.
The trucking industry is in uncertain times, and businesses must be ready for any changes. As economic pressure mounts, the situation remains fluid. Both businesses and consumers need to stay informed and prepared for potential price fluctuations.
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