The trucking industry continues to face new challenges, including global capacity issues that are expected to persist throughout the remainder of the year. Strong consumer demand, a rebounding U.S. economy, and shortfalls in truck availability continue to drive up shipping costs. The logistics industry is seeing unprecedented growth. “We have never before observed such an extended streak of growth in the LMI,” reports Freightwaves LMI Index.
What is driving the capacity issues affecting U.S. shipping companies?
The biggest issue is demand – there are currently more freight shipping requirements than drivers available to support distribution. A growing backlog is impacting ports, warehouses, and supply chains nationwide. The heavy flow of inbound shipping containers needed to meet consumer purchasing demand is causing long delays at ports and railways. Combined with a shortfall in freight drivers and trucking equipment, the U.S. logistics capacity shortage is causing shipping prices to increase.
How is the logistics industry responding to changes in demand and labor shortages?
Companies are adding new equipment and increasing driver pay, as they compete in a tight labor market to add new drivers to their workforce. These efforts have not yet caught up with growing market demands, however, and shortfalls impacting shippers and shoppers could continue into 2022. As 2021 comes to a close, increasing demand during the busy holiday shopping season, combined with high container volume at America’s ports, and winter weather, could all cause an increase in delays and costs.
At TRL, we understand the dynamic marketplace and work hard to help our shipping partners plan in advance to ensure their freight is picked up and delivered on time, every time. As an asset-based carrier backed by a network of professional drivers, we can deliver flexible shipping solutions, even in a volatile market. To help you meet demand in a changing marketplace, we’ve compiled a list of recommendations for shipping during this time:
Ship early when possible
To safeguard on-time arrival, plan to ship at least 1-2 days earlier than you have in the past.
Increase transportation budgets for 2022
Shipping costs are rising and, in some cases, can vary from week to week. We provide a suggested budget in advance, but in most cases, an accurate quote will be delivered within 5 days of shipping. Costs are expected to rise into the new year.
Ship more products, less often
Try shipping more goods less often, by shipping in bulk rather than a few pallets at a time. This is a cost-effective solution that can help reduce rising shipping costs this year.
Diversify your carrier network
Partner with experienced carriers and diversify your logistics network. An experienced shipping company can help guide you through the dynamic marketplace, providing greater choice in rates, service, operational area, and carrier specialty.