In a previous article, we explored some of the digital tech trends that have been playing an important role in the freight shipping industry over the past decade. Major changes in the industry have forced shippers to incorporate new tactics and technology to stay competitive. Such changes like the introduction of Amazon have influenced rapid progression within the industry for freight shippers to maintain business and relevance.

Below, we look into five non-digital tech trends that are reshaping the freight industry.


Click to read our article on 5 Digital Tech Trends That are Impacting the Freight Shipping Industry. 

Increase in Freight Rates 

With the current reduced capacity and a corresponding surge in demand, the current increase in freight rate will not decrease in the following months. This trend is already weighing lots of companies in the industry following the ELD mandate. With many smaller companies still using paper logs, the deadline approaching means that they must make the switch over to comply with the mandate. The industry predicts that the increase in freight rates will cut out “3-5% of the industry’s capacity off the road, as smaller, less compliant carriers won’t be able to cheat anymore to stay competitive”.

air freight costs

Increased freight rates are influencing companies to find better solutions to suit their shipments, and shippers to find the best carrier for them.


Growth in Capacity Demand

The second half of the year 2016 witnessed a monthly increase in the freight demand and an increase in shipment of less-than-truckload (LTL) was recorded than full truckload (FT). Also as more drivers retire in the year 2017, the gap for more capacity will widen.

The New Administration Pro-Business Stance Will Spur Freight Growth

The position of the present government is a plus for the business community, and this affects the freight shipping providers in the right way. As more companies are returning to the U.S, this has increased hiring and manufacturing is receiving a big boost. This will be an increasing demand on freight shippers, and the ripple effect that is expected will result in more drivers and fleets.


The Amazon Impact on Ocean Freight

Amazon entry into the ocean shipping market with obtaining non-vessel-owning common carrier (NVOCC) license is going to affect the ocean freight. Due to the inability of ocean freight shippers to meet the demand of Amazon by providing a cheaper and faster delivery for its increasing online demand led to the floating of its shipping line. Amazon is positioned to meet global demand where other could not cope.


Dynamic Pricing Will Become Common

Pricing will be forced to remain competitively low with the use of Application Program Interfaces (API). APIs will give freight shipping providers an advantage for these low prices and will automate data exchanges between many mediums. These mediums include carriers, shippers, freight brokers, receivers, and transportation management systems (TMS).

dynamic freight pricing

With the introduction of technology that makes processes tied together, the overall costs for shippers will slowly decrease.

What’s Next?

The freight industry is growing faster and smarter by the day. With the promise of restoring hope and any possible backlash for the continuation of offshore services, freight shipping providers have the change to restore faith and public trust in 2017. This will also help companies increase profits if they can spot the trends.


To learn more about what is happening in the industry, be sure to follow our blogs. For information on freight shipping, please visit our page here to learn more about the different freight services that we provide. Otherwise, contact us for any other concerns!


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