Truckload Is a High-Demand Mode, Capable of Giving Shippers More Benefits
Full truckload remains a mode of transportation that’s in high demand. According to FreightWaves, the 2019 shipping market deepened the divides between large enterprise carriers and smaller, regional carriers. In response, spot market rates have grown more inconsistent, following changes in demand. It is a precarious situation. Volumes were close to 2018 Peak levels through May, and volumes have remained within 3% of 2018 values. At the same time, fears over the capacity shortage and the driver shortage led to the investment in more capacity. Unfortunately, available capacity does not equal available drivers. More importantly, spot rates for full truckload have dwindled through the summer months, but those rates will bounce back in response to the coming peak season. Another factor affects rates, as well.
Increasing oil barrel averages, 32%, have pushed retail diesel prices upward. This will catalyze an increase in general rates, as well as peak season surcharges. However, truckload remains the most cost-effective means of moving freight, especially when using freight consolidation and deconsolidation to take advantage of lower costs. In other words, the available drivers and expenses associated with full truckload are much less stressful than relying solely on parcel or LTL carriers. Remember, LTL carriers and parcel servicers may add additional surcharges for moving freight that goes beyond their typical limits.
How to Find Truckload Carriers When They Seem to Vanish
Instead of resorting to leveraging LTL and parcel carriers exclusively, shippers need a few tips to attract and retain truckload carriers:
- Digitize freight management. Utilize a TMS that gives you all trucking mode options available to choose for every shipment.
- Streamline dock planning, scheduling, and communications.
- Eliminate dwell time by enabling better dock staging.
- Communicate delays or changes in real-time.
- Leverage real-time access to freight carrier rating.
- Review all available modes before selecting a single mode.
- Work with, not against, truckers.
- Work to get the “Shipper Of Choice” status.
- Use data to measure performance, recognizing truckers that excel, and arrive on time.
- Use a TMS that integrates with your other supply chain systems.
- Take advantage of cloud-based systems.
- Never stop improving.