Monday, December 8, 2008

Getting it to market will be tougher

Trucking firms are downsizing rapidly. More than 130,000 big rigs (over 7%) have been pulled off the road already, and the figure will keep growing as the recession takes a toll. Many trucking firms will be forced out of business entirely and that will generate a huge shortage when the economy recovers. Demand will ramp up faster than capacity, so rates for moving freight will spike. Figure on paying about 10% more when the economic recovery is in full swing. Consider locking in a rate now. Offer to guarantee a minimum level of business in exchange for guaranteed service and limited price hikes.

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