Navigating Tough Freight Times: Insights from Reliance Partners

October 20, 2023

Image Source: Reliance Partners

Waves of uncertainty have hit the logistics world, especially with Convoy's unexpected exit. Everyone knows someone affected. Reliance Partners' President, Chad Eichelberger, is right in the thick of it, sending out best wishes and sharing insights.

Quick Insights:

  • Current Challenges: Rising interest rates, fewer loads, shrinking margins.

  • Shippers' Moves: Increasing payment days, squeezing rates, and pushing tough contracts.

  • Legal Woes: Increased cargo fraud and broker lawsuits.

Speaking Up:The industry needs a unified voice against shippers with harsh demands. It's crucial not to see these tough conditions as 'just how things are.'

Tips for Navigating:

  • Stay firm on contracts.

  • Vet carriers diligently.

  • Understand your insurance.

  • Engage actively with lenders.

Trends Seen At Reliance Partners:

  • Peak motor carrier cancellations in May with a gradual bounce-back.

  • Reported freight brokerage revenue dips by 20%.

Capacity stats indicate where the market is headed. "If the reduction continues, then the environment starts to look more encouraging." Source: Reliance Partners

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