The cost of products has stopped soaring, and an inflation cooldown may benefit truckers. In the last few years, everyday product prices have risen internationally and domestically due to numerous circumstances. One of the most significant factors was the COVID-19 pandemic, which impacted economies globally. As businesses shut down and millions went unemployed, the demand lowered for a temporary period. A $1.9 trillion stimulus bill suddenly grew consumer demand to unpreceded levels. Many industries could not keep up with the sudden pressure, and limited supply resulted in a price increase. In recent months the rising cost of goods has stagnated and even slightly lowered in specific industries like food.
How an Inflation Cooldown may Benefit Truckers
Food brands increasing their costs due to inflation have begun to slow down, which benefits consumers and truckers. The CPG (Consumer Packaged Goods) Inflation rate is a measurement that tracks grocery prices. In March 2023, the rate was 8.8%, the lowest number since November 2021. An effect of the past inflation was that the volume of packaged goods transported by truckers decreased. Specific trucking companies even had to reorganize their shipping routes to markets to compensate for monetary loss. Another factor that led to the reduced volumes moved by haulers was the return of restaurant spending.
Trucking companies usually move a higher volume when shipping to marketplaces than restaurants, but the pandemic temporarily lowered restaurant spending. As restaurants began opening and inflation rose, lower freight volumes again impacted truckers. With inflation slowing, truckers may soon benefit from an increase in the number of shipments moved. One of the ways that trucking companies have stayed afloat is by shoppers buying private-label brands in groceries. Stores tend to sell these in-house brand types for less than regular brands. While less expensive, they generate profit for grocery stores due to the amounts purchased. For trucking companies, private-label products can mean increased grocery store shipments and yield.
Temperature Controlled Shipping
A standard method of shipping generally used for specific products sold at grocery stores is temperature-controlled shipping. Often moved in reefers (Refrigerated Containers), goods like perishable foods, chemicals, plants, pharmaceuticals, and beverages are considered temperature controlled. Since a minor temperature alteration can make the cargo unusable, urgency is involved when shipping this type of freight. Temperature-controlled is one of the main kinds of shipping that can benefit from lowering inflation.
With inflation slowing down, many predict that the cargo volumes moved domestically will pick up. Sellers of different products may soon benefit from having more customers. This also can mean that more goods must be transported to the sellers’ facilities by truckers. If you plan on transporting freight by truck, it is beneficial to get the best rates. The shipper can do this by contacting a broker to coordinate the process. Contact A1 Freight Solutions at 786-375-9420 or info@a1fsinc.com for a quote to move your cargo across the U.S. domestically. Along with refrigerated trucking, we offer numerous other solutions to help you navigate the shipping process.