Five Things That Determine Freight CapacityMarch 7, 2018 7:26 pm Leave your thoughts
A good mantra for any business is “hope for the best, but prepare for the worst.” This especially can be said when talking about the looming freight capacity crisis. The inevitable freight capacity problem was predicted by logistics experts as early as 2014 and, while we have not experienced anything too concerning up to this point, things may come to a head before 2018 is over. Rather than be caught off guard and have the freight capacity issue affect your company’s assets and efficiency, it’s better to be prepared. As a company providing freight delivery in Houston, TX, we wanted to provide you with a list of five things that will determine freight capacity in 2018.
As the unemployment rate drops, we are seeing a continuing driver shortage across the U.S. One of the main factors behind the driver shortage is an aging current driver population. As more and more drivers retire, the industry is having difficulties finding qualified drivers to replace them. While this issue is on the mend as those in the trucking industry offer increased wages and other perks to recruit new drivers, the number of available, qualified drivers is expected to continue to drop in 2018.
The ELD mandate that went into effect just this past December requires that shipping companies implement electronic logging devices so a driver’s hours of service can be better regulated and managed, which further affects the driver shortage issue. There’s also the added cost of installing ELD equipment and providing training on the new systems.
As e-commerce continues to boom across the country, we are seeing more and more goods being shipped rather than bought at the store, including traditional in-store items like groceries and toiletries. All of this creates a very taxing demand on the trucking industry.
The manufacturing industry is continuing to grow in the U.S., which is great for the economy, but the trucking industry has not quite been able to catch up yet. As manufacturing increases, the demand for shipping both raw materials and finished products increases as well, which takes a toll on freight capacity.
The past few years have seen several natural disasters across the U.S., including hurricanes, mudslides and severe snowstorms, to name just a few. These natural disasters disrupt transportation and can have long-lasting effects due to the damage caused to highways, bridges, roads and other transportation lines. Meanwhile, natural disasters in other parts of the world can cause gas prices to rise, which also affects freight capacity.
While freight capacity may be an issue as we move farther into 2018, you can reduce the impact on your business by planning ahead. A good way to start is by establishing a sound relationship with a local service for freight delivery in Houston, TX. At Pro Delivery LLC, we handle regular shipments throughout Houston and the surrounding areas and are prepared to help you meet the freight capacity crisis. To learn more about our services, call us today!
Categorised in: Freight Delivery
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