Establishing a reliable and constructive approach between carriers and employees is the foundation of an easy freight trip.
Recent reports raise concerns surrounding freight transportation. Cass Information Systems announces a five-month low this year following July 2021 truckload shipments index hitting 1.177.
Equipment and employee availability play a key role in successful freight transport. Methods to cope with restrictions circling these two aims to enhance transport capabilities.
The first strategy to touch on is trucker employment. According to the Bureau of Labor Statistics (BLS), trucking employment fell from 1.52 million to 1.43 million. Due to social distancing restrictions, the industry lost 33,000 fewer workers since the pandemic hit. The shortfall of commercial driver’s license (CDL) training last year is another downfall of the pandemic.
Additionally, the FMCSA’s Drug and Alcohol Clearinghouse contributes to additional restrictions. A centralized database keeps a record of all drivers who test positive for drug use. Since its initiation, the program has waved more than 70,000 drivers for drug or alcohol violations. Not only is Covid affecting unemployment, but new screening requirements play a part in the process as well.
The biggest challenge thus far remains competition. Parcel delivery employment and its warehouses continue to rise into 2021. Parcel delivery employment and its warehousing equivalent took an upward turn in 2020 and accelerated into 2021. According to BLS data, delivery employment has exceeded 1 million for most of 2021, and warehouse positions have surpassed 1.4 million since October 2020.
Other than employment difficulties, equipment is in insufficient supply. The driver supply isn’t the only pressure carriers face in 2021. Trucking businesses have had to wrestle with an equipment shortage, intensified by a backlog in microchips.
“The chips that go into trucks are unavailable, so manufacturers can’t make enough trucks to meet demand,” says Greg Price, CEO, and co-founder of the Austin, Texas-based platform Shipwell. “Even the used truck market is on fire right now.”
An accelerated shift toward e-commerce, combined with ongoing inventory restocking, makes for a remarkably tight freight market. A 2021 McKinsey & Co. report finds that consumer spending in the second quarter of 2021 rose above 2019 levels by 4% to 7%. Within that category, e-commerce flew at least 35% above pre-COVID levels.
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The Next Steps…
Creating incentives for truckers is one way to sustain employment. For instance, clean facilities, internet, and available parking are some ways to encourage employees. Drivers want to feel respected for their time.
A sufficient amount of communication between organizational teams is another element in ensuring a successful freight.
With the help of technology, data management plays a substantial role for companies, employees, and consumers.
Creating reliable relationships in the transport process keeps cargo moving efficiently.
