Why are freight costs increasing?

trucks, driver shortage

Many analysts are predicting shipping increases anywhere from 7% to 11% this year.  So, what are the main issues that are causing the increase in freight charges?

Driver Shortage - Many drivers are approaching retirement age and will leave the work force in the next several years, and there are not enough young people entering this field.

ELD (Electronic Logging Devices)  Mandate - The time a driver is behind the wheel will be governed and enforced with ELDs.  Shipments that once could be accomplished in a day will now take two.

Density Pricing - Shipments have been rated by class for over a hundred years.  Now density becomes a factor.  Not only the weight of a shipment, but the amount of cubic feet it takes is calculated into shipping cost.

Increased cost of fuel  

No more “guestimating” weight - If you declare the wrong weight, it will be adjusted to what the trucker weighs upon loading, and there may be a charge for that.

What can you do to help control some of these increases?

Become more efficient in your dock. - The faster you get trucks in and out of your dock affects truckers idle time and ultimately your freight costs.

Optimize Your Packaging. - Protect your shipment but avoid packing a small box into a much larger box filled with bubble wrap and foam peanuts.

Combine Modes of shipment. - When you need to ship truckload quantities, consider combining truck with rail.

Proximity to inventory. - One of the advantages to buying from Gane is our shipping locations.  We currently have 7 strategically located warehouses throughout the country.