A shortage of capacity and lack of qualified drivers is changing the dynamics of freight, according to Transport Capital Partners’ recent survey.
The trucking trade press is alive with news of a growing capacity crunch. But, to what degree?
TCP Partner and survey leader Richard Mikes says the latest survey attempts to find out why asking whether freight is actually being left on the shipper’s dock?
Nearly three-fourths of carriers responded that they believe freight is sitting on the shipper’s dock. This lack of capacity comes as the industry faces growing volumes but a shortage of qualified drivers. Additionally, rising costs and lowered driver and truck efficiency due to HOS are also contributing to the problem, reports TCP.
The fourth-quarter TCP survey found that, in every category, carriers are expecting to renegotiate accessorials, with, 68% of carriers focusing on detention times. This is almost double the number from a year ago, says TCP.
“Recent changes in Hours of Service have made detention times a hot button on driver efficiency and equipment efficiency,” says Lana Batts, TCP Partner, who that larger carriers are expecting to re-negotiate more than their smaller competitors.
Meanwhile, the trend of carriers using less broker freight services continues. Seventy-six percent of carriers indicated they intend to use less broker freight. Richard Mikes observes, “This is a logical fall out from tighter capacity and rising rates, and a consistent trend since the end of the great recession.”