Trucking Industry Shrinking, Nearshoring on the Rise

Trucking Industry Shrinking, Nearshoring on the Rise
October 3, 2008

As over 3000 trucking firms are expected to shut down in the next year and others scaling down operations, capacity may be strained. And as extra shipping fees are being added on, wholesale prices will probably inflate and retailers will not be able to pass too many costs onto the consumer. Small businesses in the same region are advised to pool their resources to have better standing with the trucking companies.


Local manufacturing looks like it will be on the increase though since the prices of cargo transport from China has tripled in the last 5 years; not counting the ocean freight costs from other nations as well. And since oil prices are not likely to dip to pre-2007 levels either, many companies seek to avoid outsourcing, thus cutting their delivery times. Volkswagen, Ikea and others have already begun increasing output at their plants and building new ones in the US. At the same time, food retailers are focusing more on pushing local produce, and imports of out-of-season items may be more costly and less commonly found.