Market Trends To Look For In 2022
It’s difficult to determine how far the ripple effects of the pandemic and global supply chain issues will continue to impact future operations. Reviewing the data over the last two years may reveal some new commonalities. The 2022 Logistics and Supply Chain Trends and Outlook data uncovers the latest in truckload shipping predictions.
Market Trends To Look For In 2022
2021 broke historical records in so many different departments. With labor shortages, lack of proper equipment, rising fuel costs, port congestion, and changing policies, the year following the start of the pandemic has been unprecedented. Spot markets are predicted to ease, but numbers are still 15%-20% higher than in previous years. The majority of the market consists of contract rates, and they are estimated to be 4%-5% than last year.
The e-commerce explosion is forecasted to continue producing even higher numbers as inflation rises. The housing market, along with the price of other big-ticket items like vehicles, continues to rise as well. This will undoubtedly lower the demand as people hold out in hopes of lower prices.
Trucking companies have been brainstorming more now than ever to make their industry more desirable. In hopes of attracting new employees, companies have increased pay several times since the beginning of the pandemic. Many companies have suggested lowering the minimum age of commercial truckers. They are also brainstorming ways to bring in a larger female presence in a male-dominated field. With the addition of tapping military drivers, companies hope to ease the huge burden during the remainder of the year.
Port congestion has caused equipment shortages across many different areas of business. As the containers sit untouched for days to weeks, a spiral of delay and congestion compiles as the fleets are unable to circulate as they were meant to. Due to these delays, warehouses continue to run out of capacity. The efforts to resolve these matters continue as companies do everything they can to decrease delays.
Even smaller owner-operators have opened up business and come onto the scene in hopes of helping. Unfortunately, the nearly 100,000 new owner-operators have not seemed to make a dent in the market. They represent a slight shift in the capacity as most of these truckers were already employed; they just transitioned into owner-operator roles. There is little to no new capacity in the market to make a big enough impact on alleviating some of these issues.
Maximize Strategy Process
The problem has never been limited goods but a shortage of capacity. To stay in the competition, it’s important to understand the needs of carriers. Shippers need space, and it has become a rare commodity. MIT did a study on the average time truck drivers spend on the road and found that drivers spent 6.5 out of their 11 allowed hours driving. The study showed that truck drivers, dispatchers, and logistics managers could maximize their time driving rather than waiting at a dock. The main reason for these shortages is not because there aren’t enough drivers but the inability to optimize existing drivers and machinery.
If drivers are kept from carrying out their duties with long wait times, carriers can become selective about who they do business with. If businesses were to strategize their process to become more appealing to carriers, they could stand out above the rest.
Managed Transportation Services
Managed Transportation Service (MTS) providers have become the new way to optimize your freight and shipping processes. MTS provides day-to-day support so companies can focus on building their business. Navigating through the complications of 2022 may require comprehensive 3PL services, which will help to maximize business operations.
How Can Trifecta Transport Help You
Your shipping business could benefit from Trifecta Transport services in more ways than one. Not only do we manage all your shipments, but we work hard to build relationships with trusted handlers throughout all of the United States, Canada, and Mexico. We focus on the daily tasks so you can take your business to new heights. Without highly skilled logistical engineers, we partner with you to help your business run in a more streamlined manner. Regardless of your specialty, we can optimize all air freight, intermodal rail transport, and domestic freight shipping needs.
Contact Us Today
Please reach out today and let us help get you started. Our experts at Trifecta Transport specialize in taking the load off your shoulders and helping you to manage your logistical operations. We are happy to schedule a consultation for your business and customize our services to meet your unique needs.
We look forward to hearing from you!