Shippers should expect LTL rate increases in 2020

The start of the new decade may not be so cheerful for shippers looking for changes in the new year. At least that’s the opinion of Recon Logistics President Todd Fain, who believes LTL carrier rates will continue to increase in 2020. 

Due to the economy’s current stability, Fain predicts the industry will rely less on price cuts or discounts in order to get business, meaning companies will have to find other ways to be competitive in the market.     

“A lot of shippers are focused on rates and negotiations, but there are a lot of other ways for them to reduce their total costs,” Fain said. “Going into 2020, I think we’ll continue to see that. We’ll also continue to see the technology and visibility push because that is what people are expecting, and that’s really what Recon’s focus will be.”

Recon Logistics aims to streamline everyday transportation management to help companies make better-informed logistics decisions. The logistics provider sets out to provide its clients with an easier shipping process and help drive their bottom-line profits.  

Ushering in a new era of innovation, Recon’s executive team welcomed 27-year industry veteran Todd Fain as president on January 1.

Fain most recently founded Shipper’s Guardian Inc. in 2013. He previously served as Senior Vice President of Carrier Solutions for Banyan Technology, for which he helped develop and implement a new pricing product across the LTL industry. As Recon’s newest torchbearer, he plans to lead the company to center more heavily around technology, strategies and partnerships.

“The focus is on transparency and technology,” Fain said. “I want to focus on giving what the shippers have always asked for, which is providing the most transparency available.”

The Cleveland, Ohio-based company has strived to bring integrity, transparency and honesty to the often chaotic world of logistics since its founding in 2005. As “a shipper’s trusted strategic adviser,” Recon has embraced the changing logistics landscape, creating its own transportation management system (TMS) and application program interface (API) connections. The company conducts live audits on shipments in addition to providing real-time business intelligence to its clients.

Fain’s new year’s resolution is to remain on the lookout for ways to cut costs and improve efficiency as he predicts familiar problems will follow the industry into 2020, including rate increases from LTL carriers. Fain believes driver availability and a “capacity crunch” will continue to trigger headaches for both carriers and shippers alike. 

“We’ve seen a couple of LTL and truckload carriers go out of business [in 2019], such as New England Motor Freight,” Fain said. “The capacity crunch will continue to be there, so carriers are going to have to focus on other ways to be competitive in their market, reduce costs and become more efficient.”

Despite industry woes, members of Recon’s executive team have already shown faith in Fain’s leadership and believe his extensive logistics background will be key in maintaining the company as an industry leader.

“[Todd] will be instrumental in enhancing our team’s ability to maximize the value of our offerings within new and existing client relationships,” said Recon Logistics’ chief executive officer and founder, Hank Newman, in a recent press release. “His leadership will be especially critical as Recon Logistics pursues new growth strategies while continuing to manage our current explosive growth in the market.”

Fain is excited to help grow the company as it moves into the next decade. 

“I feel like my career has come full circle and brought me home,” Fain said. “I am more than excited to join Recon Logistics at this time in the company’s growth and to have the privilege to work with the most talented logistics team in the industry.”