With one of the biggest holidays of the year fast approaching, freight volumes in certain regions are already starting to spike. Combine that with the current higher- load- to truck ratios, and this holiday season is shaping up to be fairly busy and profitable for carriers in high demand. Although holiday season is known to kick shipments and freight volume into high gear, this year is expected to be an especially high peak season for carriers looking to cash in on freight rates. Check out the latest factors impacting the freight market and prepare for holiday hauling on the road:
Holiday Retail Sales Sky Rocketed:
The U.S. is hitting its highest growth of holiday sales since 2011, with a record breaking $1.002 trillion in retail sales. The e-commerce growth is sure to elevate higher freight volumes. This economy boost means a high demand for carriers that move retail freight over the next couple months.
High Container Volume Surge:
Long Beach/LA port, the largest container port in North America, has had a significant increase of container volume since September. With the fall shipping boost in full effect and consumer demand at an all-time high, container volumes are predicted to ramp up the holiday season. This is great news for shippers and carriers to take advantage of the high freight rates as a result.
Strong Job and Income Growth
2018 has marked the longest streak of job growth since the early 2000’s. With the decline of unemployment and the rise of income growth, the freight demand has consistently elevated over the last 6 months. Despite the financial impact hurricane season had, the stable employment growth has proved to be a strong foundation for consistent retail growth heading into the holiday freight season.
UPS Freight Strike
In light of the recent UPS freight strike, more freight is predicted to shift into the spot market to keep up with the high retail demand. This would mean a spike during the holiday season, as shippers scramble to fulfill major retailer deliveries offset by the UPS strike. Promising plenty of opportunities for carriers to capitalize on the high freight rates this upcoming season.