Shipping Business Expected to Increase As Truckers Face Shortages

    Shippers may have an advantage over truckers in this transportation cycle. The current shortage of qualified and experienced truck drivers is hurting the industry in this freight transportation cycle. Increases in orders, and lack of a decrease in costs of shipping are also hurting the trucking industry.

    The Global Banking Company has reported there will be a large expansion in barge and rail capacity in the near future. The heavy truck population required move freight forces trucking companies already overextended to put additional money to train new drivers. An increase in shipments may force an increase of drivers, and overwork the current ones. Currently, under U.S. law a driver is allowed a 14 hour work day limit and an 11-hour driving limit. This makes it relatively difficult to budget time with little room for delays of any kind. The overbearing workload may force some drivers to come dangerously close to these limits. A driver forced to wait for loads at a yard could find those precious hours being eaten away.

    Analyst William Greene states "When there were prior peaks in freight volumes, there were usually 1-2 years of growth before volumes began to decline, an indication of a recession". Meaning after two years of growing, there would be a decline. While a rebound may be in the near future, for now there will be rough cycle for truckers. However, with the steady contraction of trucking business, shippers will be at an excellent advantage for growth and prosperity during this freight transportation cycle. According to the GE Capital, the current economic trends are benefitting the U.S. freight transportation industry.