The US truckload market is facing a shift towards over-supply. This change is being driven by several factors, including increased investment in new trucking equipment and the number of drivers entering the market. Here’s a closer look at the situation.
An Over-Supply of Trucks
The increase of investments in new trucking equipment is particularly significant, as it has led to a substantial increase in the number of trucks on the road. This, in turn, has resulted in a surplus of trucks available for shipping goods. A surplus means lower prices for shippers, which many companies in need of trucking logistics are enjoying.
An Over-Supply of Drivers
The increase in drivers entering the market has caused an over-supply. Many drivers have been drawn to the trucking industry due to the relatively high pay and the promise of stability in an uncertain job market. However, some trucking companies are trying to leverage this to their advantage. Considering they are now charging lower rates, some companies are reducing their costs by letting go of their experienced drivers and replacing them with inexperienced ones. This makes it difficult for companies in need of trucking logistics to know they can trust the company they are hiring.
Adapting to the Changes
Carriers will need to find ways to adapt to these changes to remain competitive and maintain their reliability. Adjusting their pricing strategies, investing in new technology and equipment, or finding new ways to differentiate themselves from their competitors are all signs of a great trucking company.
As always, you can count on All Points to navigate all these changes in stride instead of trying to do so alone. No matter what’s going on in the logistics industry, we will always pride ourselves on our ability to get your cargo where it needs to go, safely and on time.