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Managed Freight Services: Truck Shortages Ahead?



3 minute read

 
 

Too often, manufacturing executives are unaware of what’s going on in the trucking industry. After all, you’re work is growing your business not tracking trucks. You don’t have time to follow logistics trends or stay updated on market fluctuations and potential disruption caused by weather events and ever-changing government regulations. But this very lack of information and expertise puts your business at risk.

While it’s no secret that 2019 has been a rough year for trucking companies, you might not know much about one of 2019’s biggest themes–carriers closing up shop. In the news, Stevens Tanker Division just informed its employees that it “will close permanently affect(ing) 586 jobs across the state of Texas.”  And that’s not the only recent layoff. Roadrunner Transportation Systems plans to “downsize its unprofitable dry van business line by the year’s end, reducing the company’s dry van tractor and trailer fleets by over 50%.” This will eliminate nearly 450 jobs.

 

Why are these stories important?

Ben Ames writing in DC Velocity, explains “that [market] volatility forced trucking rates up to historic highs in 2018, pushing many fleets to increase driver wages and replace vehicles and technology.” This in turn led to excess capacity, a drop in spot market rates and dozens of fleets forced into bankruptcy. When you couple that with “unpredictable economic growth, a shortage of truck drivers, [and] increases in environmental restrictions,” as well as, upcoming governmental regulations, the trucking industry is set up for a perfect storm.

We’re talking higher rates and fewer trucks on the road. And this means busted budgets and lots of scrambling.

What’s the answer? Managed Freight Services.

Good partnerships and even better relationships are integral to maintaining a predictable freight spend. But how do you cultivate the strong relationships needed in logistics when you have to focus on other aspects of your business? Outsourcing your logistics operation to a 3PL who specializes in managed freight solutions is an option. Listen, we understand that you might be wary, like lots of other organizations, of outsourcing any part of your business, but the truth is logistics gets more complicated and more expensive every day.

You simply can’t get by without new technology, and a robust transportation management system (TMS) is a must. In addition, heightened consumer expectations makes tracking and visibility capabilities more necessary than ever. You need routing guides, data analysis, and the skills to use this important information to boost your productivity and efficiency. When you outsource your logistics operations to a trusted partner, you’ll want all of this and more.

Managed Freight Services: Strong Relationships

That’s where those strong relationships come in. When you partner with AM Transport Services, you get the added benefit of our 30 years experience in the transportation industry. We know logistics professionals all along the supply chain, from drivers and carriers to warehouse managers to consignees and distributors.

You deserve accountability and predictability, and don’t let anyone tell you it’s not available because it is. Don’t let loose capacity lull you into chasing the lowest rates down the rabbit hole. You’ll pay for it later. Schedule a call today with one of our account specialists to find more about managed freight solutions at AM Transport Services.

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