Truckload Capacity Tightens; Drivers Flee to Owner - Operators

Capacity is reaching its boiling point— well maybe it’s more of a simmer. Nevertheless, large truckload fleets are awash in loads, and short on drivers. They’re shedding shippers for better volumes, better freight, better lanes and higher pay. Large carriers are increasingly investing in their dedicated fleets (turning over truck and driver to shipper for set fees and costs), since it’s more profitable and more predictable than spot market, or retail freight.

Since early spring, carriers have been seeing higher turnover, and driver loss. Some large carriers have hundreds of

trucks parked, wishing they had drivers to drive them. Where are the drivers going? Two places: they’re getting better jobs, where they are home more, or get more miles and more pay; or they’re going into business for themselves. According to our affiliate. QualifiedCarriers.com, 11,570 new trucking companies entered the marketplace since February 2011, for a 7.5% increase. 


So what’s the trick for shippers? Stick with your most trusted providers and treat them well. Remember who stuck by you in the tough times and forget the ones who did not. Shippers and brokers who chase the low rates are the first ones left holding the bag, chasing new “friends” when the going gets tough. Low price providers have no problem leaving shippers the minute they find better freight. Capacity is predicted to remain tight in 2012 and 2013.

Tucker's Managed LTL Program Hugely Popular

Our fastest growing and most popular service for shippers is what we call our “Managed LTL Program.” Many of our customers and prospective customers have grown weary of dealing with LTL discounts, general rate increases, comparing discounts and net costs between companies, comparing routings, and dealing with claims. In short, they’re looking for simplicity and savings, and we’re delivering.

One customer recently told us that one particular LTL carrier damages about 10-20% of the product they receive, so they scrap the freight, don’t file a claim, and get a credit from their supplier. Our Managed LTL Program folks are working with this customer to (a) identify its true costs, including freight, time, resources, disposal and loss of sale; and (b) establish pricing with carrier(s) that value its freight, and can handle it without damage; and (c) establish customer service procedures that save the customer time, but more closely monitor performance; and (d) save money. 

Do you ship $100,000 to $1,000,000 of LTL freight? Do you experience any of the issues above? Please call us and ask to speak with a sales representative about our Managed LTL Programs.