As a whole, the transportation industry will see growth in 2019. With all this projected growth, the shipping industry will have plenty of opportunities to improve their logistics and general operations. In all of the hustle, FTL freight is shaping to be at full capacity this year. There is a high demand for freight right now, but a shortage of drivers.
There is a general shortage of drivers and trucks in the industry, across the nation. What does that mean for retailers? Freight rates were at an all-time high in 2018, and are shaping to continue in this fashion for 2019. Shippers may notice an increase in rates as the capacity crunch rises. This has the potential to affect a few areas in the market.
Driver shortages have been a problem for FTL freight for a time, but it is only estimated to increase. It is estimated by the year 2026 that there will be a shortage of 175,000 drivers. That’s an alarming number when you think of the repercussions that carry. As a whole, our expectations for shipping seem to be increasing as well, with technology easily at our fingertips. With driver shortages, we can expect to see delays and an overall increase in freight rates.
Increased Online Sales driving FTL Freight
There has been an increase in the online division of retail. Shippers should definitely find a way to work closely with their carriers, which has the potential to benefit them both. With this increase in demand, compounded with the shortage of drivers, shippers should plan ahead. Online sales and the expectation of fast shipping has really reshaped the shipping industry of FTL freight. As more and more drivers are needed for LTL freight demands, that will leave less and less drivers for our FTL freight shipments.
Be Prepared; Be Flexible
Retailers may need to begin by evaluating their shipping needs, and reshaping what that looks like. Some industries may be faced with decisions on who will eat the climbing costs. For some, that may mean keeping a shipment in the warehouse a little longer until they have an FTL freight option. Or it could mean just the opposite, a shipment that would normally be an FTL freight shipment may need to be broken into smaller LTL freight shipments. For some, it may be just a simple tweaking of your shipping and delivery availability times. Flexibility and great logistics will have to play hand in hand in the coming days. Staying on top of trends, and finding what will be cost effective for your company will pay off for you and your business.
It’s not all bad
FTL Freight may be in for some changes, but here at American Manufacturing Solutions, we are working hard to keep you ahead of the times. We are dedicated to working with our clients to find new and innovative ways to meet their shipping needs from all the possible angles. We aim to offer new and creative solutions to the pressing shortages and high demands ahead of us.