What is going on with Transportation business. Part 3 ( Finale).

Here it is : WHY? WHY? WHY?

Why is all this happening now? Inflation, interest rates, fuel prices, labour wages, business expenses and everything else are going up and up, and the rates for shipping are going down and down. The players in this game are blaming each other: truckers blame brokers, brokers blame shippers and market conditions , shippers blame the economy and who do I blame? Well, I have a hypothesis , and I repeat, Hypothesis!

For the last 17 years, since I have worked in the Transportation and Logistics industry, I always heard one unchanged "saying" from Giant Carriers: THERE IS A SHORTAGE OF DRIVERS! . Then our politicians did pick up on this "saying" and etc. Soon the whole Nation got it. I have never heard them saying, There is a shortage of trucking companies, carriers, brokers or owner operators!!! Hmm, so what does that shortage means?

When human being gets his CDL or in Canada AZ licenses, he/she gets hired most of the time by Mega Carriers without experience, works there for the next 2 years, and then leaves them for a better future by becoming owner operator and opening his/her trucking company! And now, that lovely human being is an "enemy" and competitor to those Mega Carriers. They(Mega Carriers) do compete between each other, and now they must compete with over 3 million owner operators. If you were in their shoes, what would you do? I believe, you will start driving the shipping rates down, to create difficult conditions for the owner operators and small fleet owners, same as for small brokerages, to compete in this unstable fragile market. You start scooping the market! On top of everything, real shortage of freight makes it really hard to survive for small, but proud players!

In the periods of this year and the next year, the rates will stay low, the bad blood will disappear and will be hired back by the Mega Carriers, the freight volume will start slowly going up, the Mega Carriers, after absorbing a huge portion of the market, will start raising their shipping rates and with upcoming elections, the market will stabilize! What a Hypothesis!!!

On this note, for a bright future ahead of us, I would like to close this topic and wish to remind all players of our game: Remember, not all games have winners and losers, sometimes a good draw could be a lot more entertaining and satisfying ! Stability is the key to success!