Secure Capacity with Small Carriers
Capacity in 2019
The first few weeks of January usually see a slowdown in the logistics business, but 2019 has been a little different. By many accounts volume has remained fairly steady even while capacity has loosened up a bit. In other words, it’s been a great start to the year for freight brokers who’ve been covering plenty of loads during a typically slow time.
But what’s on the horizon for shippers? Industry experts believe the driver shortage will continue, especially if you’re dealing with large carriers who compete with other industries for qualified drivers all the time, but even more so when the economy is strong. Smaller carriers have much lower turnover rates for a variety of reasons, but driver pay is rising across the board. And this pay raise affects how much you’ll pay to have your product shipped.
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The ELD Effect
How will the continuing impact from the ELD-rule enforcement affect rates and capacity? While most industry insiders agree that the hard enforcement of the ELD rule constrained capacity, it wasn’t as bad as predicted. And the rule has probably had some positive effect. Donald Broughton, over at FreightWaves explains:
The focus on the loading and unloading times of shippers and receivers that was necessary to recover lost utilization post ELD adoption has provided dispatchers and fleet managers with the data needed to provide the added benefit of improving the driver’s quality of life. Whether it was directly penalizing shippers and receivers who abused drivers’ hours through higher rates and detention charges; indirectly penalizing them through decreased access to equipment; or simply managing the equation through increased drop and hook – drivers are spending less time than ever waiting to be loaded and unloaded.
2019 is shaping up to be a pretty good year. Continued growth is expected in the economy and with driver wages rising and the ELD-rule providing data that can be used to increase efficiency, capacity should be a little easier to access. And the best way to secure capacity is to find an experienced logistics partner.
Small Carriers Prove Big isn’t Always Better
Here’s something to think about. Big isn’t always better. In fact, sometimes small is flat-out superior. A small 3PL like AM Transport Services offers consistent, reliable service, 24/7/365. We’ve been in logistics for 30 years, and we’ve cultivated a core carrier base of small providers for whom the driver shortage is non-existent. According to the Journal of Commerce, “in the last six years, small carriers with one to 100 trucks have added a net 335,000 drivers, with fleets of 20 trucks or fewer accounting for 229,000 of those truckers.”
These small carriers with fleets of one to 100 trucks are the backbone of our great industry, but they’re hard for you to find. They don’t have a strong online presence or an abundance of new technologies–they’re doing what they do best, hauling freight. That’s where your logistics partner matters. It’s where AM Transport Services, a full-service 3PL, can make a difference in how quickly, efficiently, and cost-effectively your loads are booked, shipped, and delivered.
How do we compare in pricing with other 3PLs?
We’re not the cheapest 3PL out there, but we offer the most bang for your hard-earned buck. You see, we believe you get what you pay for, and at AM Transport Services, you get exceptional service day in and day out.
We don’t offer instant freight quotes. In fact, we think you should be wary of those who promise to do so. Instead, we offer fast and accurate freight quotes because we get to know you and your freight. Here’s the thing, we’ll provide you with several options, so we can create the best shipment every time.
And when you work with our team, you’ll get a real, live person every time. You won’t be put on hold by an automated phone system because we answer our own phones. Real people committed to your success.
Finally, we don’t want all your freight.
The truth is we’re good at the hard stuff. We like a challenge, so if you have a load that’s keeping you up at night, why don’t you give us a call. We’ll get it on the road today.