Will Trucking Demand Return Back To Pre-Pandmeic Level?
Although we are several months removed from the start of the COVID-19 pandemic, economic changes are still happening. Trucking rates are higher, but other rates are increasing, too. Operating expenses, gas prices, and shipping rates continue to climb, affecting thousands of businesses. Perhaps you’re wondering if trucking demands will return back to pre-pandemic level and what that means for your business.
Will Trucking Demand Return Back to Pre-Pandemic Level?
If you’re wondering about the trucking demand, you are not alone in your concerns. Yes, trucking rate numbers have experienced 10% increase over the past couple of years. This is a good thing because it means our economic state is desperately trying to return back to pre-pandemic level. However, if it returns too quickly, it could pose a problem if rates collapsed.
The trucking industry, like everything else, operates by the law of supply and demand. If the market floods with a large demand, the trucking industry may not keep up. Operating costs to keep up with pre-pandemic level demand will cost more now than they did in before 2019. Gas prices, insurance, and maintenance concerns and costs also play a part in increasing the pre-pandemic demand. Here’s a deeper look at some of these factors.
Some Factors Causing This Issue
Inflation and high fuel prices are the primary reasons to consider in the trucking industry. Current truck fleets want to prevent delays, but they are often weighting on air freight or other domestic freight shipping services. A few other factors play a bigger part in trucking fleets.
High Fuel Prices
There are high fuel prices everywhere, especially with diesel fuel that trucks require. Fuel for trucks now has increased to over $0.30 per mile. This adds up quickly since most trucks have to drive long distances. According to the Truckload Carrier Association (TCA), many truck carriers have to pay for fuel in advance, some of which include additional charges. These extra costs create a strain on trucking companies.
Since trucks often operate 24/7, routine maintenance is essential. Several companies have purchased new fleets of trucks, which all require initial maintenance and more costs involved. The cost of new trucks has doubled within the past couple of years.
As with all vehicles, insurance fees add to the cost and upkeep of trucks. The Truckload Carrier Association records that current insurance fees increased to approximately $0.26 per mile. While that may not sound like a lot, it adds up the more miles the truck drives.
Will This Trucking Demand Shift Affect My Business?
It’s important to understand how the trucking industry works so you know how the changes may affect your business needs. You don’t have to deal with the stress of possible shipping delays on your products. There is a better solution.
The Trifecta Transport Team Can Help You
Trifecta Transport understands it’s difficult to navigate the freight shipping logistics for your business. Regardless of what shipping method you choose, you may have to wait longer than you want for your projects. Finding a company who can work with your business can feel stressful. That is where our company works with yours to ensure you receive your products on time.
Our company specializes in time critical shipping, intermodal rail, and other transport services. You don’t have to worry about keeping tracks of multiple carriers for your products. We are committed to going beyond your basic needs and helping you create a logistical plan that works for your business.
Contact Us For Logistics Help Today
Do you need help streamlining your shipping needs? Contact Trifecta Transport today so we can help you put a plan in place.