Spot rates are 40 % higher than the last 5-year average
Transportation added 24,000 new jobs last month
The pandemic has left most supply chains in disarray confronting flatbed truck carriers and retailers critically with higher demands for goods and executable transport shortages. The surging of online sales is causing congestion at the ports. The significant challenges that retailers face adding days and weeks delaying the supply chain and could even extend these inventory shortages through year-end.
The delays have added warehousing and transportation costs at alarming increases adding as much as 3 weeks to the supply chain and passing the increases as a hidden tax to the consumer caused by the current administration’s inability to offer a much-needed remedy.
The next current retail event is the back-to-school shopping spree. As parents prepare for this current school year and the changes in the new normal, spending will likely increase. Clothing, health, and personnel care goods are trending the lead in sales. The economy is reopening faster than anticipated and consumer spending is likely to be greater than seen in pre-pandemic levels.
These current economic indicators have carriers and brokers expecting high demand in the retail freight sector to the tune of over 4 trillion dollars. This resilient economy is expected to last through to year-end.
Flatbed Truck Carriers and Retailers continue to struggle with fragile supply chains
Expectations for the trucking industry.
Carriers maintain pricing power in this existing supply-driven capacity crunch period. Drivers are still in short supply not entering the industry as quickly as needed. Recent pay increases are showing promise as over 24 thousand jobs were added last month to the industry. However, with demand increasing much faster than the industry can add capacity, the status will likely persist as contract sales continue to increase.
The home-building industry keeps flatbed truck carriers and brokers busy
As lumber prices continue to move upwards builders continue to deal with these increases and shipping delays. Carriers and brokers in regional flatbed markets have their sights set on the most aggressive residential construction market, single-family home construction starts.
New home construction is booming in the following cities. Builders applied for over 14% more in permits than last year.
New York, NY
Los Angeles, CA
The pandemic has fueled this trend as white-collar workers from more expensive areas of the country are looking for more space as they currently work predominately from home. They are moving to suburbs and more rural areas that offer more space for larger homes rather than expensive cities and smaller condo spaces. The bottom line is larger homes farther away from the cities.
In summary, these current pandemic trends will continue to fuel the transportation sector and more than likely the increases in goods, warehousing, and transportation costs into the near future.
Check with us today at Heavy Haul Transporting to help move your current loads at competitive pricing, call (844) 337-4909.