In the complex world of logistics, a significant concern for many trucking companies today is the recent drop in freight rates. The pressures put on these businesses due to this decrease are multifold and have implications that reverberate throughout the entire industry.
The Driving Forces of Freight Rates
Freight rates are determined by the balance between supply and demand in the freight market. In principle, when the demand for freight services exceeds the available capacity, freight rates rise. Conversely, when there is an oversupply of trucks compared to demand, freight rates fall. Recently, various factors such as economic downturns, decreased manufacturing output, and shifts in global trade have contributed to a lower demand for...