Forward Air Company Saw Decline in November
Large ship carrying cargo
Thousands of companies experienced financial strain following the 2020 Pandemic. Both international companies and those in the United States dealt with shipping delays and an increase in rates during the Pandemic, and some are still dealing with the issue today. Less-than-truckload provider companies, such as Forward Air Company, saw a decline in shipments over the past year. This issue causes us to wonder if other companies are experiencing a decline as well.
Why Was There A Freight Decline?
Shipping provider companies, like Forward Air Company, are experiencing a decline in tonnage over the past year. In fact, Forward Air Company’s shipments decreased by approximately 20%, even though they experienced a strong start to the year. Some shipments contained more packages but weighed significantly less than previous shipments. Compared to their 2021 shipping records, the company reported a significant decrease in 2022. This issue also caused a decrease in revenue, leaving the company wondering what the new year will bring for business.
Why was there a sudden freight decline for Forward Air? Well, since the company specializes in less-than-truckload shipments, they generally deal with smaller shipments. Many businesses partner with less-than-truckload providers to ship packages to customers across the globe. Compared with asset-based carriers like Old Dominion, Forward Air Company did not experience as much of a decline. The truth is, several provider companies experienced a drop in rates over the year. Whether the company experienced a decline from inflation or change in supply and demand, they plan to evaluate their general rate increase plans for the coming year.
Will the Decline Continue In the New Year?
While there are many reasons shipping providers can experience a decline, experts believe the lull with Forward Air Company shipments is temporary. The CEO stated that the company plans to focus more on high-value freight shipping as well as implement a Grow Forward initiative. This plan includes a 5.9% increase in shipping rates in the hopes they can replenish the revenue loss of this past year. The rate increase will hopefully help with inflation costs and bring in new customers with their expedited shipping options.
How These Rates Will Affect Businesses
Many businesses world-wide are still feeling the financial strain of the 2020 crisis. Amid trying to return to normal, customers and business owners are dealing with inflation and rising shipping rates. Businesses who rely on shipping providers should remain aware of continuing shipping issues that could bring production halts. Rising shipping costs will also contribute to delays and lead to more frustration in company management.
Whether you use less-than-truck-load providers, freight shipping companies, or another option, it’s important to consider all your options. As provider rates increase to combat inflation, businesses may struggle to find a provider to meet their needs.
Partnering With Trifecta Transport Can Help
Fortunately, there is a solution to potential shipping halts and time critical logistics with your business. Trifecta Transport handles less-than-truckload and other shipping options for thousands of businesses. Our team handles your shipping logistics so you can take care of your customers. We help manage freight vendors and customers and help your company deliver packages on time and within your budget. Our knowledgeable team will even audit your freight bills to ensure you’re receiving the best rates for your business.
Contact Us Today
If you need help with the shipping logistics of your business, we can help. Contact Trifecta Transport today and let us help you find the best shipping options for your business. Call us for a free quote on our services today. We look forward to helping you find more freedom in business management.
