DJ Products Supplies Equipment for Shunting Trailers
Chances are that your freight company will be doing a lot more semi trailer moving in 2018. Thanks to a number of industry trends and events, average contract rates are expected to increase in the new year by as much as 10 percent.
Manpower Shortages and Tight Capacities
A shortage of drivers is the most significant factor driving rate increases. According to Bob Costello, chief economist of the American Trucking Association, the number of drivers in the industry stands at only about 50,000.
– The driver shortage has also led to a crunch in capacity rates, which hit 90 percent in the second quarter and are approaching 100 percent with the impending holidays.
– There are fears that the December 18 deadline for implementing electronic logging devices to track service hours may cause even more drivers to leave the industry.
– Hurricanes Harvey and Irma have tightened capacity and pushed spot market rates up.
– The economy continues to become more robust, as indicated by 4.1 percent unemployment and three percent rise in GDP during the third quarter.
Solving the Driver Shortage
David Jackson, CEO of Knight-Swift Transportation Holdings, says the industry has been hurt by its dependence on baby boomers. The average age of drivers is in the mid-50s, and younger drivers aren’t entering the field quickly enough to counteract attrition.
Jackson suggests that raising pay rates is essential to attract new drivers. Andrew Lynch, president of logistics firm Zipline, adds that increased contract rates can provide the necessary funds to raise driver pay.
Simplified Semi Trailer Moving from DJ Products
Move semi trailers safely and efficiently with our electric Yard Dog terminal tractor. Visit our website and learn more about our full line of electric tugs and movers from our sales engineers.