Small to medium-sized shippers face many difficulties when it comes to full truckload freight services. Effective freight management requires managing complex factors such as drivers, trailer trucks, timely deliveries, plus additional situations. Different freight carriers charge their clients differently, depending on various elements, including loading capacity, demand for services, degree of complexity of the system, and varying traffic levels.
Contrary to a common belief, the volume doesn’t fix all issues, nor does it talk about full truckload FTL versus less than truckload LTL shipping options. While full truckload FTL services are much more efficient and cheaper than LTL services, still they have their fair share of shortcomings. There are some FTL-related problems that every shipper experiences at some point in business.
Understanding The FTL Services Demand
Full truckload facilities are one of the most cost-effective ways of moving goods from one place to another. This mode of transportation is equally beneficial to both shippers and carriers, leading to a significant hike in demand for these kinds of freight services. Be that as it may, with increased demand often results in a decrease in supply as well. For full truckload management, the greatest challenge is to keep up with demand.
Reduced Full Truckload Capacity
Decreased capacity is one of the significant issues faced by the shipping industry. There has been a considerable hike in the rates of most carriers all over the world lately. Part of this increase in prices is due to enhanced demand from large retailers and their eagerness to do whatever it takes to get their products into the market, even at above-market rates.
Although the increased demand for FTL services translates into greater success for carriers and higher wages for drivers, it still tightens the available loading capacity. The only viable solution for this problem is to utilize as many carriers as possible to enhance the available capacity.
Finding Competent Truck Drivers
One significant hurdle faced by carriers of all sizes is recruiting new and keeping competent truck drivers with commercial licenses. One of the critical reasons for this problem is an acute shortage of good young truck drivers in the market these days. The important thing is that there’s still a high demand for FTL services from retailers with large volumes of goods and their willingness to pay higher rates to get their product into the hands of eager consumers.
This increase in the rates of FTL services has provided small and medium-sized carriers with a significant increase in pay. However, the challenge of finding qualified CDL drivers is likely to continue until the transportation services find any creative ways of bringing in new expert drivers.
Low-Volume Destinations Result In Higher Rates
FTL services are generally subject to varying rates. Freight costs usually depend on market trends – markets with low-volume will lead to higher FTL charges compared to in-demand consumer markets. Nonetheless, the lack of contracted prices among most truckload service providers opens the door to possibly lower rates.
Smaller carriers have to tap into the larger carriers’ resources to mitigate the issues of higher rates for low-volume destinations. For shippers, they should utilize a dedicated transportation management system to streamline freight scheduling of full truckloads.
DSONS Transport offers professional cross-border full truckload freight services across Canada and the United States. Visit our website to explore our expert freight services or contact us if you have any questions regarding our services.