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The Great Capacity Crunch Crisis of 2018

Posted by Jordan Wilson on Sep 28, 2017 3:55:54 PM

capacity crunch crisis

So, here's what's about to happen in the freight world:

Over the last 2 weeks, truckload capacity and rates have been extremely volatile.  Is this a glimpse into 2018 once the ELD mandate has begun to take its toll?

Both InternetTruckstop and DAT load boards have seen the most posted loads to available trucks in their history in the last two weeks of September. And as end of month and end of quarter shipping pushes have increase, capacity and pricing has become even more unstable. 

But what are the key factors that could impact the first quarter of 2018?

  • ELD mandate will cut miles and productivity anywhere from 3-5% across the board.  Internally, AMX has shown those numbers are closer to 9%.
  • Driver shortages – Will older drivers/owner operators begin to exit the industry, as some have predicted, once ELD hits?   Additionally, the driver shortage will grow to over 175,000 drivers needed by 2024.
  • Freight volume and tonnage increases – overall volume is expected to increase up to 34% over the next decade.  How will shippers manage this increase as the driver shortage begins to hit the industry too?
  • US Manufacturing boosts are also expected to impact some of these numbers and possibly increase current forecasts over the next few years.

So where does this put you and your freight in 2018?  AMX has a goal to show a reliable and sustainable capacity for its customers.  We understand there will be challenges faced by most shippers and most carriers.  The only way we can all make this work is to work together.  We are fully committed to that process!

 

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