August 14, 2024 • General, Market Updates
Over the past few years, it has been important to keep watch on the US inflation and interest rates. July 2024 continued the trend of decreasing inflation rates, reaching 2.9%, the lowest it’s been since March 2021.
This is great news for consumers and manufacturers alike, as this puts pressure on the Federal Reserve to cut interest rates come September.
With lower inflation and the possibility of lower interest rates, we can see the following effects:
Increased Consumer Spending
This means a higher demand for manufacturing and transportation of goods. But, within our high-inflation period, the US saw the bankruptcy and shut down of major trucking companies. Now, the reliable navigators of this changing market on the brink of peak retail season are experienced brokerages like Full Sail Logistics.
Cost of Warehousing Decreases
Where the consumer’s pocketbook gets a little relief, so do the shippers and manufacturers. As consumers spend more, the cost of warehousing goods lessens. This decrease of overhead on manufacturers and suppliers means less cost incurred upon the consumer.
Shipping Costs in Flux
In the anticipation of increased consumer demand, the tightening up of routing shipments becomes imperative. Improper route planning means higher shipping costs, which, in turn, trickle down to the consumer.
Demand in trucks often means higher rates from drivers. So, in peak retail periods, it’s hard to avoid those increases. But, if routes are planned strategically, the costs can be reduced. This is where trucking brokerages come into the picture. FSL offers strategizing with in-network carriers to keep costs as low as possible. Our goal is to make clients’ lives easier, as well as reduce impacts on costs to consumers.
At Full Sail Logistics, we provide guidance through all market shifts. With the relief of decreasing inflation and interest rates, we’re here to make the most of a great situation. Our services run the gamut from standard dry van, refrigerated, and flatbed moves to more niche and specialized transportation. So, let us help you today!
