2021 Rate Outlook
Originally posted on K-Ratio
Trucking is a commodity and like any commodity, its price, though volatile and unpredictable, is still subject to the principles of supply and demand. In 20
20, these principles, and their derivative concepts, were stressed and stretched to their very limits but always held true. One would be hard pressed to find another calendar year containing as many economic cycles as the prior. Unfortunately, or perhaps fortunately depending on which business one is in, 2021 will likely pick up and continue right where 2020 left off. Despite the extreme seasonality typically found inside freight, markets do not stop or revert to normal conditions simply because we turn the page to a new set of days. Rather, all elements of seasonality and past historical trends should only exacerbate the extremes of supply, demand, and their intersection: price.