Why Are Trucking Fleets Expanding During A Freight Slowdown?
As we continue living in a post-pandemic society, we will still experience fluctuations in the economy. Small business owners and major corporations are trying to find the best way to get back to normal, including trucking fleet operations. While freight slowdown is still an issue in many parts of the world, trucking fleets are still expanding. If these fleets continue expanding amid a freight slowdown, it could cause several issues among these companies.
Why Are Trucking Fleets Expanding?
Right now, many trucking fleets are expanding their quantity of rigs at the same time. Some of these companies believe if they get more trucks, they can move more supplies. While this is not a bad idea, fleets aren’t receiving the trucks they ordered from manufacturers. In fact, resources, including those at ACT Research, say the increase in demand for new trucks resulted in a manufacturing halt. Last year, some companies who ordered trucks are still waiting to receive their orders. In certain cases, companies ordered more trucks than they could afford because of easier financing options. The demand was so large, manufacturers could not keep up.
Some major carriers can spend billions of dollars on new equipment, but smaller fleets are using every penny they have on more trucks, so they can expand their company. Smaller companies tried purchasing used trucks, causing a significant increase in the used truck market. Large companies saw this and then increased their order for new trucks. While there is nothing wrong with owners expanding their companies, manufacturers cannot keep up with the heavy demand of new equipment.
What Does This Mean For Businesses And Consumers?
One major issue with the increased demand for new equipment is that small trucking fleets can’t keep up with major corporations. Reports suggest as manufacturing companies produce more trucks, these trucks will go to larger fleet companies, leaving smaller companies searching for other alternatives. This could mean trouble for many small companies. More trucks on the road could actually slow things down even more than they are now. Some worry a freight recession may occur, which means trucking services will decrease, but expenses will continue to rise.
A Large Concern
The biggest concern right now is the potential increase of more trucks on the road. If there are too many trucks, it will take longer for consumers to receive their orders.
One reason for the concern is higher rates both in gas and salary. Smaller fleets are already struggling with rising costs. If they increase their fleet, rates will follow. Smaller companies will feel the weight of the supply and demand issue more than large companies. As manufacturers rush to meet trucking orders, the orders will more than likely go to large trucking fleets first.
Partnering With Trifecta Transport
If your business ships goods around the world, the trucking fleet issue concerns you as well. As trucking companies slow down, consumers have to wait for their goods. Trifecta Transport is an all-in-one solution to meet your scheduling, shipping, and other business logistics. We are a dedicated team that helps businesses work out time critical shipping, freight shipping estimates, and so much more. We understand the importance of helping your customers through shipping concerns during a freight slowdown. Our team can help your company navigate shipping freight issues to ensure your customers receive their orders on time.
Contact Our Team Today
If you’re ready to partner with our team, contact Trifecta Transport for help today. We will give you more information on how we can help you navigate shipping concerns, booking, and more. Call us for a quote on our services today. We look forward to partnering with your company.