Warning: Don’t Set Your Forecasts Yet!
by Michelle Remerscheid, International Business Development Advisor, AVP
mremerscheid@arvest.com
Cell: (972) 896-9427 | SWIFT: ARVTUS44
Benjamin Gottsch with V Alexander & Co., Inc., a freight forwarding company, issued a warning late December regarding the declining freight rates caused by lower demand and increased blank sailings. While many companies are thrilled with the presently low rates in comparison to what we saw earlier in the year, there is concern that these low rates won’t last which will prove troublesome if forecasts on freight are based on these new numbers. Some forwarders may be worried if this low rate is passed on to a client, they will produce their sums based on these costs, and when the market pivots again, the carrier will lump on additional charges.
Our advice? Allow some cushion if you do need to set forecasts, and don’t expect this current environment to last.
| 
