Consumer demand is beginning to sustain a healthier pace vs year to date. As we close out Q1, we can see capacity constraints begin to slightly loosen up. However, fuel instability is still a major factor for anyone in the industry. We’ve seen many small fleet owners along with owner-operators adopt and adapt mimicking the larger carriers by introducing fuel surcharges, some abandoning the all-in rate and contracted rates.
Many supply chains have also begun to adopt the spot market mentality and rise in fuel costs. This can be seen with the current inflation. The question is should the contracted-rate mentality be ceased entirely? As we enter further unknown variables, supply chains are still wondering “what’s next?” Could this be the calm before yet another storm?
–Giuliano Murro, Operations Specialist
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