This year we have seen a continued increase in the spot rates market, which has left many manufacturers feeling stranded as they struggle to fulfill orders and manage their supply chain. This imbalance has many factors involved. Most notably they are: healthy consumer spending, inventory that needs replenishment and an industrial economy that is getting into full swing. All of these factors create a high-demand environment, which would put a strain on carriers even if they weren’t facing their own supply-side challenges. On the carrier side, many are facing a reduced workforce due to drivers leaving, a reduction in new drivers due to reduced capacity at CDL schools and a reduction in potential CDL recruits due to localized courier providers that are servicing e-commerce organizations.
The combination of factors leaves many manufacturers at the mercy of the spot market at a time when they’re facing a demand surge as well as an increase in material costs of production. All of this will cause frustration as manufacturers struggle to navigate tightening capacity throughout their supply chain which shows no signs of letting up in the foreseeable future. The best solution lies in partnering with a carrier that can accommodate your shipments at a rate that is fair to both sides. Manufacturers that are still relying on the spot markets at this point will face a losing game as they’re at the mercy of brokers providing cut-rate service and are putting their shipments at risk of breakage. Manufacturers that partner with a trusted carrier will find themselves much more at ease, providing stability at a time when they need it most.
At Zip Xpress, we understand the need for stability at a time when dealing with tightened capacity. We partner with each and every one of the businesses we work with, which allows us to provide the custom carrier solutions that work best for them. Our dedication to service has also kept our drivers satisfied, which means your customers will be delighted when one of our drivers delivers your final product. Whatever the case may be, we will find the right custom carrier solution for your business. To find out how, start today with Zip Xpress!