2022 Freight and Distribution Forecast

Many Americans are becoming increasingly familiar with the supply chain and how it works due to recent hiccups in the system thanks to consequences of the global pandemic. From empty store shelves to delayed shipping of online purchases, people are paying attention to how the freight and distribution industry impacts their daily lives, and it’s generating an increased appreciation for the LTL trucking sector.

Here’s what to expect in 2022 for freight and distribution, as well as how partnering with a third-party transportation brokerage company can help you navigate challenges this year and beyond.

The rising role of trucking in the global supply chain

The global pandemic has affected every industry, and the trucking sector is no exception. As the United States deals with supply chain shortages due to a combination of factors, including decreased production, increased demand and a historic driver shortage, the public is taking notice of how important the trucking industry is to the free flow of goods.

Freight tonnage is expected to increase 24 percent in the year 2022. Fortunately for operators in the industry, this comes with a projected increase in revenue. Trucking is expected to see an increase of 67 percent in terms of tonnage, along with a massive increase of 82.2 percent in revenue.

If you’re a shipper, expect to see significant rate increases throughout 2022. Some shippers will have challenges finding carriers to move their goods in the first place. By working with a transportation brokerage company, shippers can ensure their goods get moved to the places they need to be.

As shipping continues to get more expensive, many small companies are choosing to switch from current shipping methods to less-than-truckload (LTL) freight. Not only does this save businesses money, but it also streamlines logistics. Shippers who move their goods through LTL freight don’t have to pay for unused cargo space, and even small-scale shippers can take advantage of these better shipping rates. Plus, businesses can send more shipments more often using LTL, reducing warehouse costs in the process since so many products don’t have to be stockpiled at one time.

How can transportation brokerage companies help?

A professional transportation brokerage company can help shippers and carriers alike. A reliable broker can help shippers find drivers for their loads, which is especially important in today’s climate of increased demand for freight and decreased labor pool. Brokers help carriers, too, by providing them with new business leads.

During times of market shifts, like we’re experiencing now, shippers need to look for alternatives to their traditional carriers. In today’s tight market where spot rates are on the rise, shippers may face tender rejections from their standard carriers, but brokers can fill in the gap to transport the freight where it needs to go. While the rates will be higher, the goods will get moved.

The LTL trucking industry, and the trucking industry as a whole, is seeing major changes as the world emerges from the global pandemic. Learn more about how a transportation brokerage company can help your business by contacting K-Way Express, Inc. today.