Worried About a Recession? Produce Shippers Need Not Worry

Posted by Fernando Correa ● Oct 14, 2019 4:48:00 PM
Produce shippers

The economy always remains a topic of concern in the trucking and transportation industry. A sense of uncertainty has been created in some business sectors due to the likelihood of an economic recession.

The inverted yield curve on the bond market and the slowing of GDP growth in the United States has raised concerns about an upcoming recession.

The trade war with China has also limited investments. However, these recession fears are unlikely to cause a major impact on produce shippers in the United States due to the constant demand for these items.

Current Trends in the Transportation Industry

Freight rates continue to increasingly drop, as imports and exports decrease due to tariffs. The ongoing trade war with China has made a significant impact on reducing the amount of freight coming into and leaving the United States.

Ultimately, this gives produce shippers additional transportation options, which further reduces the price of shipping. Freight brokers also have the opportunity to leverage better deals, which allows produce shippers to make more money.


Why Produce Shippers Don't Need to Worry About a Recession

One of the main reasons produce shippers need not worry too much about a recession is due to supply and demand. Food will always remain in demand during any type of economic climate, while other non-essential items such as building supplies will be impacted much more due to a recession.

Ultimately, produce and food shippers are an ideal partner for transportation companies during the events of an economic downturn due to the steady amount of shipments.


An Eye Towards the Future

The economic uncertainty gives produce and food shippers additional leverage to improve their service level contracts. However, it is important to remain cautious despite the positive trends in the produce shipping industry.

Always maintaining relationships with existing carriers is important due to market unpredictability. Keeping an eye towards the future can help you stay well-prepared for any potential changes in the trucking industry, whether the economy remains stable or is headed towards a recession.


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Topics: Shippers, Trucking industry