Summer time is in full swing! With it comes abundant sunshine, heat and caravans of anxious travelers out on the roads headed to their vacation destinations. For most of us, summer means fun and relaxation, but for shippers in the logistics industry, summer time can present extra challenges on the job:
Talk of federal tariffs has been inescapable over the past few months - mainly in relation to the U.S. trade war with China. New talk of a tariff on Mexican products has been added to the mix. President Trump announced, effective June 10, the U.S. will impose a 5% tariff on all goods imported from Mexico. The tariff is set to increase to 25% by October if Mexico does nothing to halt “its illegal flow of aliens to the U.S.” The proposal of a 5% tariff on Mexican goods, and the potential for it to increase to 25% over the next several months, has shippers worried about what this could mean for their businesses.
You’re already aware of how tough it is to reach your growth goals and increase earnings, and finding a carrier company that you can trust at a reasonable rate is becoming an increasingly prevalent issue that isn't making your growth goals any easier to reach. This level of truck availability and the higher rates associated with them has been happening for longer than anyone expected, and we’re coming to learn that it’s probably going to be around for the long-haul (no pun intended)—leaving a permanent mark on your cost structure. What’s the driving factor behind this seemingly permanent tight market, you ask?