This year has been quite a roller coaster ride for the transportation industry. From entire industries ground to a halt for months on end, leaving logistics companies scrambling to fill routes and rates in limbo, to owner-operators and smaller carriers facing bankruptcy despite federal aid. The pandemic has been challenging for transport companies, to say the least, but there may be some good news on the horizon for drivers.
Pandemic Created A Shortage
With the supply of logistics operators shrinking for the past few years and greater dependence on delivery services as the economy begins to recover, the transportation industry is finding itself in a similar position as 2018; too few drivers and increasing incentives to (re)join the ranks of drivers across all classes and route lengths. That’s right: carriers are beginning to raise driver on average 4-5 cents per mile. And load boards are continuing to fill: manufacturers are accelerating their production to meet consumer and business demand, creating the additional strain on logistics.
Wages Increase On Most Loads
With an increase in overall production and market demand, shippers are now leaning on the spot market to quote rates, with dry van being among the greatest winners with a recent increase of 9 cents in recent weeks, to $2.46/mile, meanwhile flatbed and reefers increased a more modest 2 cents per mile to $2.43 and $2.59 respectively.
Greater Efficiency Equals Greater Profit
In the pursuit of profitability, maintaining equipment operability is key. As load boards fill up, the last thing any operator wants is unexpected repairs or extensive maintenance reducing equipment availability. Investing in new or recent off-lease equipment offers dependability and greater efficiency allowing drivers to focus on securing and delivering more loads, at a lower fuel cost and greater equipment uptime. Take a look at our inventory of recent off-lease equipment or work with one of our partnering dealers to find the equipment you need with finance terms that help you Move Your Business Forward.