Articles by Day: July 20, 2022
Ohio trucking services have historically adhered to clear seasonal cycles, generally broken down into four quarters.
We all know that trucking – and the transportation industry as a whole – are heavily influenced by supply-and-demand, which set the bar for rates and capacity. Market conditions can vary year-over-year, but there are also consistent seasonal patterns that emerge as well.
But as our Northeast Ohio trucking service providers can explain, the largely predictable ups-and-downs of the trucking and freight industry were thrown completely for a loop during the pandemic. As noted by the International Finance Corporation, land freight was a somewhat less impacted cog in the supply chain wheel (compared to air and ocean freight) if only because roads across the globe largely remained open (except in countries or places under severe lockdown). Trucking capacity ended up being strained, particularly as there was a booming demand for food and medical supplies.
What we’re seeing now is those supply chain imbalances start to ease. The Journal of Commerce reports the market is beginning to realign (though not quite to the level of pre-COVID levels and pricing). What this means is we’re going to start seeing a shift back to seasonal Ohio trucking trends.
Being Prepared for Seasonal Ohio Trucking Trends
An understanding of trucking seasonality is important for stockholders in a broad range of industries because it can be used to forecast capacity, rates, and delivery times.
Those in the trucking and logistics sector typically identify four key seasons in freight:
Quiet Season (January – March). Volume tends to be down during this quarter. Weather across much of the U.S. (including Northeast Ohio) is not ideal for shipping. It may be possible during this quarter to find somewhat reduced shipping rates because demand has slid.
Produce Season (April – July). Ohio trucking volumes start to kick into high gear. The market tightens, demand increases, and finding a truck becomes more challenging. As a result, this season is associated with rate increases.
Peak Season (August-October). The produce season is starting to ease, but shippers are still very busy. They’re prepping for the back-to-school supply demands, as well as ramping up for upcoming holiday demands. Both volumes and rates are going to be at their peak during this period.
Holiday Season (November-December). Thanksgiving, Christmas, and New Year’s Eve put a lot of demand on the freight industry – with pressure to get it all wrapped up before the final week of December. Once we get to that final week, demand for trucking freight begins to slow, and continues that lull until the following spring.
Specifically here in the Midwest, we’re going to see the highest trucking volumes between June and September.