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Truck shortage in slack season caused by Fed rules and economic boom
来源： 编辑：编辑部 发布：2018/03/20 14:48:34
IRONICALLY, top US truckers are levying surcharges or rejecting freight in the midst of what is supposed to be an annual slow season as demand mysteriously exceeds supply, reports IHS Media.
Truckers now warn of severe shortages to come when the season picks up in April and retailers stock up for the summer and back-to-school sales.
With the new federal regulations requiring limits to hours of work due to spy-in-the-cab electronic monitors, drivers are not as productive, prompting many to leave the industry, exacerbating the supply shortage.
JB Hunt Transportation, of Lowell, Arkansas, has also turned down freight since early February in Los Angeles, Chicago and Seattle, according to emails seen by the Newark's Journal of Commerce.
Trucking companies are busy in the third and fourth quarters when retailers stock up for holidays and in the spring when growers sell fruit and vegetables.
But demand in between those periods slows down, but not this year as truckers struggle to find the trucks to send.
"So far this year each day has been strong, and we are not seeing the market let up," said Chattanooga-basedCovenant Transport customer service chief Jason Rice.
"To cover customers, you have to plan in advance to shift a truck into certain markets. Based on the day of the week, the deadhead or repositioning costs could be higher, more towards Tuesday, Wednesday, and Thursday.
"A year ago, the freight wasn't there. Today, we may be pulling a truck away from someone who has freight nearby," said Mr Rice.
"For every truck, I have three loads that I have to turn down," said Iowa-based CRST International CEO Dave Rusch. "In our flatbed sector, there is a huge imbalance."
While not levying surcharges. Mr Rusch is prioritising profitable accounts. Shippers that cannot offer lucrative freight are deprioritised, he said.
"Capacity goes to our best customers, so we turn down other freight. And we are turning down freight every day. We will pull capacity from lower customers," he said.
Truckers now warn of severe shortages to come when the season picks up in April and retailers stock up for the summer and back-to-school sales.
With the new federal regulations requiring limits to hours of work due to spy-in-the-cab electronic monitors, drivers are not as productive, prompting many to leave the industry, exacerbating the supply shortage.
JB Hunt Transportation, of Lowell, Arkansas, has also turned down freight since early February in Los Angeles, Chicago and Seattle, according to emails seen by the Newark's Journal of Commerce.
Trucking companies are busy in the third and fourth quarters when retailers stock up for holidays and in the spring when growers sell fruit and vegetables.
But demand in between those periods slows down, but not this year as truckers struggle to find the trucks to send.
"So far this year each day has been strong, and we are not seeing the market let up," said Chattanooga-basedCovenant Transport customer service chief Jason Rice.
"To cover customers, you have to plan in advance to shift a truck into certain markets. Based on the day of the week, the deadhead or repositioning costs could be higher, more towards Tuesday, Wednesday, and Thursday.
"A year ago, the freight wasn't there. Today, we may be pulling a truck away from someone who has freight nearby," said Mr Rice.
"For every truck, I have three loads that I have to turn down," said Iowa-based CRST International CEO Dave Rusch. "In our flatbed sector, there is a huge imbalance."
While not levying surcharges. Mr Rusch is prioritising profitable accounts. Shippers that cannot offer lucrative freight are deprioritised, he said.
"Capacity goes to our best customers, so we turn down other freight. And we are turning down freight every day. We will pull capacity from lower customers," he said.