The demand for freight is rising, rates are soaring and truck sales are at their highest level in years. In short, the trucking industry is better than ever. Driven in part by the growth of e-commerce, freight volume is at record levels. The increased demand for hauling goods has pushed trucking rates even higher. Click To Tweet
Trucking Industry Update
Shipping costs have skyrocketed in the United States, which is one of the clearest signs yet of a strong economy. However, this surge has created a demand that the trucking industry is struggling to meet.
With online shopping more prevalent than ever, there’s an unprecedented demand for trucks to deliver all the goods being purchased. Consumers have quickly become accustomed to this new on-demand economy. And they want it fast. Most shoppers expect their goods within 48 hours.,In addition to private deliveries, trucks must carry a record number of goods to distribution centers for manufacturers and merchandisers.
Due to the enormous demand for trucks, OEM suppliers cannot provide the parts and components needed to build more trucks fast enough. This delay is causing trucking companies to backlog orders in hopes of getting more trucks as they become available. This is creating a surge in orders for trucks as fleets try to handle the unusual situation, and in some cases, a large backlog of shipments.
Self-driving trucks might be the future, but for now, the shipping industry still requires humans and is having trouble finding enough. The U.S. trucking industry is short about 50,000 drivers. Fleets are having trouble getting enough trucks, but even if they get them, they likely won’t have enough drivers. Unseated trucks mean that many trucking companies will have to make themselves more competitive to attract qualified drivers.
So what does all of this mean? The trucking industry is resilient, and these kinds of ebbs and flows aren’t all that uncommon. They signal a need to adapt to change, something that the transportation sector is adept at. As companies get more trucks and appeal to drivers with more competitive hiring packages, the demand will eventually be met. Until then, transportation managers utilize LTL shipping strategies and other smart shipping solutions to ensure that goods get to where they’re going on time.