Tips for navigating the coming capacity correction

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

The catastrophic Francis Scott Key Bridge collapse was a tremendous loss for the city of Baltimore, which is left grieving the tragic loss of life and bracing for massive disruption.

This is also a global event, and many shippers are now on uncertain ground — phones are lighting up as they try to navigate the rapidly shifting environment. What we’re sharing with them: Indications of a national capacity correction are emerging, and the bridge collapse will likely accelerate this trend in the region.

With domestic freight volumes dead and rates still falling, most shippers aren’t seeing a capacity crunch today. But a convergence of forces is primed to disrupt supply chains, drive capacity out of the market and push up freight rates — across the U.S.

Despite recent news events, don’t be lulled into complacency amid the current shipper-friendly freight market. A shift is coming, and if you start planning now, you can get ahead of the trends and mitigate the impacts on your business.

A perfect storm is already brewing

Domestic and global factors are expected to drive a capacity correction and rebalance freight rates in just six months’ time, and the bridge collapse will certainly accelerate that timetable in Baltimore — and perhaps beyond.

Source: freightwaves.com