Seasonal Cycles of Ohio Trucking Are Back, Per Cleveland Trucking Experts
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.
How Returning to Typical Seasonal Trucking Trends May Benefit Your Business
COVID-19 threw the whole world for a loop (many loops, actually), and seasonality of Ohio trucking trends was not immune. But now, as we are seeing it begin to stabilize, The Wall Street Journal reports freight rates are beginning to ease.
That means, first of all, there is more predictability in planning.
Beyond that, now may be a good time for companies to look at renegotiating any shipping agreements that may have been struck at the height of the freight demand surge that was pandemic-driven. The spot market may also provide some opportunities for businesses to take advantage of lower rates.
If your Ohio trucking service provider is unable to meet your reasonable price points, you may benefit from shopping around a bit (as opposed to the last few years, when high demand across-the-board meant trucking prices were fairly inflexible).
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For information on our Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Freight Rates Are Starting to Fall as Shipping Demand Wavers, July 10, 2022, By Paul Berger, The Wall Street Journal
More Blog Entries:
Federal Shipping Reform Impact to Cleveland Warehousing, Trucking, June 20, 2022, Cleveland Trucking Services Blog