Equipment Crunch…. Why?

 ameiusi      Apr 27, 2017 @ 12:02 pm MDT         

With a weakening economy the past fews years many truckers were forced to sideline rigs, coupled with a shortage of available drivers, rising operating costs, and a lack of adequate credit for carriers to replace aging equipment or expand their fleets—equipment count in North America is down 15 to 20 percent from their 2006 peaks.

With capacity remaining tight and demand firming after a four-year freight recession, carriers can afford to be more selective about the freight they’ll accept. They also have greater leverage when bargaining with customers over rates. For many shippers, this raises the problem of securing the capacity they need and how much they’ll have to pay for it if and when they do.

For these reasons, many customers are turning to freight brokers to help find available trucks at affordable pricing.  Many small to mid sized shippers don’t have the volumes to leverage rates & equipment demands from their truckload carriers while brokers use their extensive data base of private based carriers who can help fill the capacity void and keep their goods and business running.

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