Profit is Projected to Decrease Soon.
The freight markets for for-hire carriers are expected to begin experiencing a significant decline in the near future. It’s important to understand the reasons behind this prediction and what you should do to protect your freight business.
Cost-Cutting Measures
With a decline expected, it’s important for for-hire carriers to look into cutting costs. Products such as a powered trailer mover can help many companies reduce their expenses in terms of manpower hours and a lower risk of injuries in the workplace. Reducing costs in these areas can make it easier for companies to adjust to any declines that may occur in the near future.
Reasons Behind the Expected Freight Market Decline
Why are the freight markets expected to have a decline? Experts cite competition from Amazon, changes in agricultural practices, and the automotive industry as the main reasons that are driving the markets toward this drop.
Amazon has been moving in the direction of building an internal freight network that they can rely on for transporting products to customers. Experts also warn that Amazon could make arrangements with an airport-to-airport owner-operator network rather than relying on for-hire carriers.
The move toward indoor agriculture in urban and suburban areas is expected to lead to less demand for for-hire carriers to bring produce to these areas from rural farms.
Lower demand and a growing trend of only purchasing one car per household could also impact the freight markets when it comes to transporting automobiles. This could end up resulting in a dramatic decline for for-hire carriers who transport vehicles.
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