For time to time, it is wise to check on the status of fellow businesses and how their supply chains are responding to the current economic climate. The Journal of Commerce recently reported on a supply chain survey that was conducted by Wolfe Research during August and September 2014. The results from the supply chain were interesting to say the least. Essentially, in a survey conducted months ago, shippers expected volume increases to be as high as 4%. In this recent survey, shippers now anticipated an increase of just 2.8% from before.
It is interested to see how shippers are anticipating a lower volume increase than what they previously projected. Perhaps the biggest factor contributing to these expectations involve the transportation of the materials from the supply chain. Most shippers, according to the survey, are more optimistic about using truckload and intermodal shipping than any other form of transportation. However, they also expect there to be capacity issues with these forms of transportation. The reasons: high demand and cargo that has been backlogged for months.
More importantly, the shippers in this survey expect to be paying more for freight shipping rates in the coming months, specifically at 3.7% increase. A year ago, they expected a 2.6% rate increase. This includes all of the surcharges for international and domestic transportation. The survey also suggested that freight brokers and freight forwarders are being sought by the shippers as an alternative to finding better freight prices and services throughout the remainder of 2014 and into 2015.