With more and more demand for products but less drivers to move those products from point A to point B, what is a company to do? According to analysts, the shipping market is growing and doesn’t show any signs of slowing down due to increased global access. This increase in shipping is a symptom of increased consumer and business demand. While the market is trending upwards, the number of drivers to move this demand is trending downwards. Additionally, the US transportation market is still seeing the deleterious effects from the ELD mandate with many carriers/drivers not coming back into the market. However, there is a way to get your freight where it needs to go while we wait for the driver market to increase again.
The Shortage
Everyone knows that there is an historic driver shortage in the transportation sector. Many have theories on why this is happening and have ideas on how to solve this problem. However, shipments still have to be moved, and demand for shipments continues to increase without regard to our shortage of drivers. In 2018 alone, there is an expected need of at a minimum, 63,000 drivers. By 2026, this number is expected to triple. To further put this into perspective, the current driving force is aging and retiring faster than new drivers are being added to fleets.
The Solution
Based on these numbers, trying to find a solution may seem hopeless. However, there is a proven solution for this problem that we have tested throughout the year, and not only does it work, but its a cost-effective alternative.
The solution is Dedicated Trucking Services.
As an alternative to relying on the spot market to move critical shipments during Q4 especially, Dedicated Trucking Services provides consistent capacity to help manage increased volumes. This service also provides shippers with better supply chain visibility and carrier partnerships, which are ultimately a value-add to the end customer(s). The dedicated trucking sector can be credited for $40 Billion of the current truckload market.
How It Works
The solution is simple: the carrier provides a dedicated driver and/or equipment to move only your freight. Specifically, dedicated solutions typically address yard management needs, local/regional shuttles, trailer storage for freight volume demands, etc.
Dedicated services do have drawbacks as well. Industry analyst Donald Broughton says it best: “Running a great dedicated operation is like the NBA-all an effective scorer has to do is pull up at the 3-point line and make a jumper. But not everybody can do that. Again and again, you see people fail to deliver.” Broughton is supremely correct about this. The effective use of this plan requires carriers that have proven their worth and have a strong industry reputation. Carriers, such as Easley, must communicate clearly and often with the customer, and carriers must be quick to respond if/when issues arise with the dedicated driver and/or equipment.
Our team at Easley has provided dedicated services for nearly 30 years. We understand the importance of clear communication and fast response times. We’ve learned over the years about the challenges that shippers face, especially this time of year, and we’ve learned how to pivot with our customers as their needs change.
If you are interested in learning more about our dedicated services, please contact us at 901.362.5152 or at [email protected].