Numbers from the summer’s logistics earnings are coming in, indicating that many third-party logistics firms capitalized on freight transport this summer. However, the cost of trucks was a deterrent to profit.
Major logistics companies are projected to grow in revenue year-after-year for the foreseeable future, but are expected to also show declining earnings. Contract rates are causing a significant decline in profits, cutting into shippers’ margins. Larger logistics companies who do more spot business will likely see increased revenue and profits.
As a result, shippers should be working in close partnership with brokers for increased profits. The need for an expedited freight forwarder with experience and connections is increasingly important. It’s unclear how many logistics companies will handle contract brokerage for next year.
At Distribution by Air, overnight air freight and expedited freight forwarding is our expertise. We are keeping a close eye on how business will trend for the remainder of this year, into next year – continuing to offer the best rates with on-time delivery.