Driving A Hard Bargain: The Impact of Driver Shortages

Driving A Hard Bargain: The Impact of Driver Shortages On Steel Shippers

 

Bloomberg reports- "Once, at the mercy of shippers, truckers now are turning the tables, thanks to surging freight demand and a shortage of drivers."

You would have to have your head in the sand to not know that there is a shortage of drivers in the trucking industry.  What you may not have considered is what the impact means to your business and secondly how you can protect your bottom line from the impact of this problem.

According to industry analyst the United States has about 280,000 fewer drivers than it currently needs.  This is going to impact your business in the following ways:

  • Your Labor Cost Will Increase.  This should be obvious with natural supply and demand laws in place.  If there are fewer drivers, that means to get your load from point A to point B, it will cost you more.
  • You Will Be Forced To Shift These Expenses To Your Customers.  Guess what your customer has options as well, so as you try to pass off your rate increases to them, they will be looking for other more cost-effective options.  Suddenly loyalty does not matter as much as the bottom line.  Speaking of Bottom lines...
  • Rising Spot Rates Crimp Profit Margins- It is obvious, as expenses rise, and shippers are unable to pass along these cost increases, it will put an even tighter crimp on shipper profit margins.

Check out this image from DAT RateView and Truckinginfo.com

 

So what are your options?  Play nice with truck drivers?  It used to be that carriers would keep a scorecard on drivers, now, companies are scrambling to win over drivers.  Beyond fresh coffee and nice breakrooms, drivers want fast turnarounds.  This means operational efficiency.  

If you are shipping steel and other heavy freight, operational efficiency can be a huge challenge, so what can you do?  You need the Mobile Transport Tray (MTT).

The Mobile Transport Tray

The Mobile Transport Tray or MTT is a game changer for shipping operations that want to move steel and have operational efficiency.  Capable of handling up to 25 tons of freight, the MTT once loaded can be load a standard container in under a minute and unloading is just as easy.  If you want to get an edge on your competition, then fresh coffee for your driver is not enough, you need the MTT from Innovative Transport Solutions.  Check out the MTT in action.

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