Trucking Capacity

Recently, a report from FTR Freight Analysis and Forecasting made a startling prediction about shipping freight by truck. They suggested that upcoming capacity issues with trucks could result in increased truckload shipping rates. Since shippers in the US depend on truckload shipping, this news might sound a bit alarming. However, there are two things to keep in mind here. First, this is only a mild prediction. Second, trucking capacity can fluctuate. Therefore, it is important to understand how trucking capacity works.

Trucking, like many industries, is all about supply and demand. When a report says that trucking capacity is spare, they are referring to the number of trucks available in an area to handle truckload shipments. For example, some cities like Los Angeles and Chicago usually maintain more than enough trucks available for the freight shipping there, and thus capacity is hardly an issue in those cities. However, some cites, Miami for example, only maintain enough trucks during peak shipping seasons, which in non-peak season leads to a lack of trucks in the area for picking up a full load of freight.

If there is a trucking capacity issue in a region, the impact could be widespread. In addition to the increased prices for shipping, the time that it normally takes for a shipment to be delivered could be prolonged. For time-sensitive shipments, this could present a big problem. Shippers concerned about capacity should work with a trusted freight forwarder who will use all of their nationwide resources to ensure that capacity is never an issue to worry about.  

Let us hope that the report from FTR Freight Analysis and Forecasting is not true and shipping prices remain low for everyone.