While the global economy may be feeling the pains of a lingering recession, Greece’s fallout with the rest of Europe, and the devaluation of the Yuan in China, there’s one industry that’s profiting (almost) more than ever before; truck freight activity rose to its second-highest ever level as of July.

Amount of Cargo Transferred Grows

In the latest reading of the American Trucking Association’s (ATA) monthly index, the amount of cargo transferred grew by 2.8 percent. The gain, said the ATA, was the biggest yet since November of 2013, and was a happy surprise after a 1.8 percent dip in June. The numbers are based off surveys reported by group members.

What’s driving freight increases?

The American Trucking Association is contributing the boom in freight to a variety of different factors, including increases in numbers of retail sales, housing projects and development, and factory output, according to an August 2015 article in The Wall Street Journal. And the fact that back-to-school season is just beginning, and the holidays are right around the corner, also suggest promises of growth for the trucking industry.

However, the increase in freight shipment may not be permanent for the trucking industry. In fact, the inventory-to-sales ratio for all businesses is higher than it’s been since the 2008-2009 economic downturn. According to Chief Economist for the ATA Bob Costello, when businesses have more inventory on hand, they’re less likely to need as much trucked in. However, Costello also told reporters that he believes a downturn—if any—will be short-lived.

Raising Rates on Freight Services

With the boom in freight shipment and services, some larger trucking services—such as J.B. Hunt Transportation Services Inc. and Werner Enterprises Inc.—are saying that the increased flood of trucking services needs may allow the business to increase their freight rates in the coming months.

Choosing an Affordable and Efficient Freight Services

With freight in demand, it’s essential to choose a freight storage, shipment, and management service that offers competitive quality and pricing; not all freight services are created equal. To get the most out of your money and your freight shipment—saving money, time, and fossil fuels—choose a freight service that utilizes state-of-the-art loading, storage, and truck technologies.

To learn more about freight services in the Houston area and how they can be of service to you, contact the freight management professionals at World Trade Distribution, Inc. With more than 50 years in the business, we’re ready to serve you. Call us at 713-672-7295 today.

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