LTL Freight News

Right now there is a big driver shortage in the trucking industry and the ports are backed up for multiple reasons. This is causing chaos in the supply chain and shippers not aligned with quality partners are facing tremendous rate hikes and delays in transit. There are some key government regulations on the horizon for the trucking industry including electronic logging devices, speed limiters and your typical “going green” initiatives for cleaner emissions and more fuel efficient trucks. Additionally, many carriers have placed or will be placing new equipment orders for new trucks that should yield better fuel mileage, and these investment costs from the carriers in new equipment and driver training and retention will be passed along to shippers in the open market. Also, in an effort to improve productivity and better align pricing to reflect their costs, carriers have begun using density scanners to analyze the freight in their systems for a better understanding of the shipments ...

If you've been using the same courier or transportation company for some time, maybe you have grown comfortable with the status quo, and the communication is stagnant. There may be some efficiencies that can be leveraged to help stabilize, and even lower costs for you and your carrier(s). Having your shipping team come in a little earlier or later than normal may allow the carrier to come in for an earlier or later pickup or delivery. This could reduce damages if your freight is now picked up at the end of the day rather than in the morning, or on the flip side it could enable you to receive orders first thing in the morning instead of at the end of the day. Small adjustments to help accommodate the carriers’ needs, like having the shipping team come in an hour or two earlier or later, can create efficiencies that produce immeasurable soft dollar savings for the shipper and the carrier. Savings can take the form of reduced damages and faster turnaround times on new orders. The wi...

It’s A Carrier’s Marketplace  The Freight-rate Climate Is The Best It’s Been In About 20 Years  Shippers Should Expect Rate Increases Up To 10%  Carriers Purging The Poorest Paying Routes In Favor Of More Lucrative Business  Higher Than 10% Rate Increases  Driver Shortage & Government Regulations Are #1 Concerns For Carriers  The Situation Is Likely To Deteriorate Further  More Government Safety Regulations Working Through The Federal Regulatory Pipeline LTL In The Middle Of The Best Market Conditions Since 2005  2013 Weighted Avg. OR Of Public LTL Carriers was 92.9 – The Best LTL OR Since 2007 Carrier, 3PL & Shipper COLLABORATION IS A MUST To Drive Efficiencies 3PLs Will Become An Extension Of The Ltl Carrier’s Sales Channels  Carriers Will Not Tolerate Bad 3PL Relationships  3PLs Must Bring Good, Profitable Business To Carriers To Be Partners  The Best 3PLs Will Get The Best Pricing  Barriers To Entry ...

The fact that as a nation the United States is facing a big truck driver shortage shouldn’t be a secret unless you've been living elsewhere for some time. Currently there is an estimated shortage of 30,000 drivers, and according to the American Trucking Association the anticipated driver shortage is going to hit 239,000 by the year 2022. But there is another problem coming into play soon that may actually make it worse: electronic log books. It's estimated that 75% of the industry is currently without electronic logging devices. In early 2015 there is a government mandate going into effect that requires commercial vehicles to have an electronic logging device. Once this is in place it will make it harder for drivers to dodge the hours of service rules. The way it stands now, trucks without electronic logging devices have a significantly lower chance of getting caught breaking the hours of service rules, especially if operated by a driver who knowingly wishes to manipulate hi...

Truckers have been hit with many blows recently, including the hours of service changes, higher operating costs from aging fleets, and insurance requirements. The aforementioned items have done nothing but hamper the situation when it comes to the driver shortage in the trucking market. Rates are going to have to rise in order to help even out the demand, or else there will be continual backlogs of freight and service issues. Something has to give. Yesterday, the American Trucking Association released that the For-Hire Truck Tonnage Index increased by 1.3% in July. The ATA's Chief Economist, Bob Costello noted “The solid tonnage number in July fits with the strong factory output reading and a jump in housing starts for the same month. I continue to expect moderate, but good, tonnage growth for the rest of the year.” The railroads are seeing the benefit of the driver shortage, but that still doesn't do away with the need for the drivers once the rail is at the unloading destinat...

The reasons for the driver shortage can be debated amongst several issues, but the bottom line is that freight companies have been turning down business because they already have enough problems dealing with the business they have. In an economy where supply (capacity) and demand (freight) aren't matching up something has to give. The trucking industry is at full capacity and there is excess demand for trucks and the movement of freight. The trucks are there in many instances, but there is not enough qualified drivers to operate the tractors. "The American Trucking Associations has estimated that there was a shortage of 30,000 qualified drivers earlier this year, a number on track to rise to 200,000 over the next decade. Trucking companies are turning down business for want of workers." This is quoted from an article in the New York Times on August 9th: http://www.nytimes.com/2014/08/10/upshot/the-trucking-industry-needs-more-drivers-it-should-try-paying-more.html Wit...