A Look Forward to the Upcoming Summer

A Look Forward to the Upcoming Summer

March 26, 2010 - 2:37 PM

If you have shipped anything in the past few months, you are likely aware that our industry is suffering from a truck shortage. As monthly tonnage started a comeback this quarter, it became apparent that shippers may be in for a complicated summer. There is recent speculation that as national tonnage declined overall since 2008, the driver pool was gradually shrinking as well.  Larger carriers have consolidated operations. Many small carriers have left the market all together.

As tonnage improved this past quarter, the driver shortage became an issue for shippers for two main reasons: 

  1. Spot market pricing became more volatile. Consequently, the ability to accurately forecast rates became difficult as competition increased for available trucks.
  2. Shippers and brokers will be forced to reevaluate their relationships with carriers as demand has trended significantly in the carriers' favor.

Recovery will take some time.  Once trucking companies decide to place trucks back into the market, the turnaround to hire and train new drivers may be 6-12 months. Many signs point toward an increase in fuel surcharge during the summer driving season. This will only complicate the equipment shortage issues. Furthermore, in July of this year, CSA 2010 will go nationwide. This is an initiative designed to reduce large truck crashes, injuries, and fatalities through improved monitoring of driver health and vehicle safety.

At this point, you may be wondering how all of this is going to affect you. The answer to that question depends on your volume, shipping lanes, and your current relationships with carriers and brokers. Rates have already increased by 15% or more nationwide.  Looking forward, we may see another rate increase due to the potential rise in fuel cost. Shipments bound to undesirable destinations have already been and will continue to be affected the most.  Partial (LTL) shipments are taking longer to move. There has been a tangible decrease in available LTL freight for carriers to match with yours.

It is critical to begin cultivating your relationships with brokers and carriers again.  It is essential to have a vendor you can rely during a tight truck capacity market. Providing your broker or carriers ample time to move your shipment can help reduce costs. It also allows them to the opportunity to identify preferred carriers and driver to service your needs.

No Responses to A Look Forward to the Upcoming Summer

Required, but not displayed.

Recent News

Spot Market Flatbed Capacity is Limited in 1st Qtr of 2014
Flatbed capacity in Qtr 1 of 2014 was very limited. In short the cost to grab Keep Reading ›
Updated Freight Rate App
Brad Eldeen Logistics is proud to announce updates to our free online freight Keep Reading ›
How to Choose a 3PL, Freight Broker, or Freight Forwarder
We make quite a few sales calls in a week. Our response varies from hang-ups to Keep Reading ›
Why you Should Always be Selling
I started in this industry in 1999 as an internal agent for Network FOB.   I Keep Reading ›
Good Article on Potential Driver Shortage
Another driver shortage! Keep Reading ›
Great Employees = Long Term Value
So...I think I am ready to start seriously thinking about changing the business Keep Reading ›
Tough Economic Times Require Diligent Work Ethic
I keep hearing a quote lately about this recession and it goes something like: Keep Reading ›