Shippers face tough choices in the US trucking market as costs escalate

It’s a good time for larger shippers to consider a dedicated fleet, according to this consultant. The driver shortage and inability for carriers and 3PLs to offer good schedules are making it hard to book a good service. It certainly throws cold water on trying to forge a long term (say, annual) contract with a carrier.

There are roadblocks in forming a dedicated fleet, too. Trucks are in short supply, due to the chip shortage among other things. and if you don’t have trucking logistics specialists now, you have to set up a whole logistics department, with knowledgeable dispatchers and logistics managers. Not all firms will be able to pull that off. So there are pluses and minuses for a dedicated fleet.

I think firms need to think strategically and decide where they need to be with their customers five or more years in the future. Then once a strategy is chosen, they need to commit the resources and money they need to get the new strategy up and running in a measurable way, so they can be sure service to customers is really improved, and economically for the firm.

By Ian Putzger, Americas correspondent 23/09/2021

Shippers face tough choices in the US trucking market as costs escalate – The Loadstar

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