2013 Freight Industry Outlook—Challenges and Projections

October 18, 2013

Global Economies and Their Impact

Economies worldwide are struggling. It seems to be the norm. With Europe’s continued recession and the USA’s slow progression forward now slapped with a government lock out; it’s hard to say what effect will be seen on our local economies. It’s probable that the year will continue to be slow right up to the end, and with hopes set high for a productive turnaround come spring time; it really is hard to say how business will go.

Freighting Challenges and how to get Around Them

Some major challenges facing the trucking and freight industry are the anticipated shortage of truck drivers, fuel costs and operating costs. Shipping and packaging materials like wooden pallets and crates need to be cost effective, so finding suppliers who provide exceptional quality wooden packaging materials will help to reduce overall costs. Investing in driver training programs and creating an excellent pay-scale and work environment for existing drivers will help to address driver shortages.

Freight Companies Have a Positive Outlook

With the slow yet steady rate of the economy, many freight companies are optimistic that volumes and rates will grow further into profitable territory. Hitting its low point in 2012 at 50%, volume projections have increased by 61%. That’s great news for shipping companies facing a myriad of challenges. Every industry has its hurdles, but in the shipping industry there’s not a lot of margin when it comes to being profitable.

Despite the need for running a tight ship, many freight carriers are quite optimistic about the year to come and business in general.

  • Many carriers have a positive outlook—based on solid projections
  • Bigger companies are even more optimistic—size gives a little more insulation
  • The majority of freight carriers expect rates to continue to increase

Pair-up Optimism with Reality

However positive your outlook is on economic recovery and growth, it’s important to be realistic and avoid over-projection into un-attainable territory and find yourself in hot water. Continuing to run a tight ship, using lean practices, valuing and keeping your existing workforce and working with suppliers who can provide competitive wooden packaging and other shipping supplies at competitive prices will help keep your freight company running smoothly.

Herwood Inc. understands fully the need for cost-effective and high quality products and services. We practice a lean manufacturing process that allows us to pass along competitive prices to our customers. We are also able to offer fully customizable options on our wooden pallets and wooden crates. That means you can have the exact product your company needs, made to your specifications.

Because we are ISPM 15 certified, our products meet international heat-treatment and shipping requirements, meaning your shipments will be granted access at any port or border crossing you encounter. That speeds up delivery and prevents costly quarantines or seizures of your shipments. Call us today and find out more. 1-800-884-4907

Nature Packaging
National Wooden Pallet & Container Association
Herwood Inc. Palettes - Pallets 198, rue Principale nord, Windsor (Quebec) J1S 2E3
Tel: 1 800 884-4907 | Fax: 819 845-7582
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