Seasonal truck driver shortages have always been a challenge for shippers. But, as the industry has matured and carriers seeking to minimize costs have reduced surge capacity, this once cyclical bane has become commonplace.
Capacity shortages expose vehicle shortages and more importantly driver shortages. Trucking is taking up an increasing portion of the workforce. There has been an increase in average hiring requirements.
The Great Recession temporarily reigned in runaway rates, however, more recently another increment of capacity management has raised average capacity utilization rates by an additional 400 basis points, leaving the industry exposed to even modest shocks.
Trucking regulations have been difficult for the industry and have created a drag. The latest 'Hours Of Service' changes and the productivity problems caused by the harsh winter have only compounded the situation, leading to a second capacity crisis. The demand for trucks during the winter, especially as an alternative to railways has been sky high. Large companies seek to utilize trucking for freight to keep to their shipping schedules and inventory needs. The demand for trucking has exposed the capacity crisis in the industry. If sustained, this crisis will dramatically increase the rates and likely start a round of significant structural changes in supply chain design and carrier/shipper relations. A growth in freight is expected and truckload prices, especially in the bulk segment are expected to grow.
Shippers, carriers, investors, suppliers and government agencies must understand this crisis in order to effectively adapt. It is potentially the most important event to hit the industry since deregulation in 1980.
Join expert Noel Perry for this revealing look at the looming capacity crisis and learn proactive steps you can take now to shield your interests.
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Noel Perry worked his way up through the heavy freight industry, beginning on a loading dock and culminating in his current role as a leading industry consultant. During his 45 year career he has worked for suppliers, railroads, truckers, barge and salt water vessel operators, and financial consultants. Recognized as a... More info