What Does The Truck Shortage Mean for Shipping?
There’s no denying that the nationwide truck shortage could have long-term effects. These will likely be seen at many different levels within the shipping industry.
It could take months, or even years, to catch up to the backup, but trucking fleets are working to add more capacity. To ensure trucks are always in motion, carriers are increasing driver pay and overtime while recruiting additional drivers.
The increase in hours spent on the road creates an increased cost that’s being passed on to shippers. Although it can cause a loss of sales and customer loyalty, shippers must either absorb the costs in their margins or further pass these cost to customers.
With a shortage like this, is there anything you can do to ship freight without high fees or drastically extended timelines?
How Do You Solve Concerns About Cost and Supply?
Proving the most beneficial solution for retailers and carriers alike is LTL shipping. LTL, or Less Than Truckload, allows shippers to pay for a specific space on a truck, rather than renting an entire truckload for very little shipment. By consolidating with other clients’ shipments, LTL carriers use a network of trucks, terminals, and hubs to ship smaller loads.
The more traditional transport option is Full Truckload (FTL). FTL transports one shipper’s goods straight to the destination. However, despite its simplicity, it isn’t nearly as efficient regarding cost, distance, routing, and price.
With trucks on low supply, shipping via FTL skyrockets the prices for shippers. For the cost of an FTL to make sense during this capacity crisis, a retailer would have to fill an entire truck to the brim and completely optimize the route.
On the other hand, even though it takes more organization, LTL is highly efficient and cost-effective for carriers and retailers alike, leaving you to focus on sending high-priority goods in multiple LTL shipments.
This can improve the delivery timeline, ensuring your customers receive their packages promptly. It also reduces cost by allowing you to pay only for the space you need. This reduces capacity rates that can cut into your profit margin.
LTL allows you to ship less, ship faster, and ship at a lower rate. LTL is the best way to ensure you have some capacity to move your goods. You are not on the hook for unused truck space meaning your goods will be shipped with others who also only need a portion of the truck space.
Are the effects of the capacity crisis and truck shortage affecting your logistics bottom line?
That’s where SEFL excels. We can help you to preserve that bottom line, saving cost while still hitting those deliveries in a timely manner. Let us show you how LTL freight can make all the difference in getting your loads where they need to be, both on time and under budget.
Southeastern Freight Lines is your LTL freight shipping solution. Find out how we can help you.