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Month: February 2016

Used Class 8 truck models continue to receive mixed reviews

According to the State of the Industry, used class 8 truck metrics remain mixed as of December 2015.

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The average mileage of the trucks was up slightly for the month of December, but overall remained low for all of 2015. Furthermore, mileage declined by 8% in 2014.

The demand for used trucks continues to slow down, which will result in reduced pricing to move the used trucks.

Nada.com, December 2015

Shortage of drivers expected to increase in the trucking industry

Oakville – Drive capacity is often an issue for the trucking industry, as it’s difficult to both employ and retain drivers. However, according to a consultant with the Freight Transportation Research Associates, the number is expected to increase.

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For the last three to four years, the industry has experienced a shortage of roughly 150,000 drivers. While the demand for drivers is increasing, there is a lack of interest in the younger generation to take the place of drivers retiring at the age of 55. That’s because the younger generation is more interested in technology-savvy positions.

In order to attract younger drivers and mind the gap, the industry must invest in technological expectations and education that will give future drivers an understanding of how the industry works. It’s important for future generations to understand that a job in the industry can be very rewarding.

Transcourt, January 2016

Low energy costs are predicted to continue in 2016

The transportation industry has seen a trend of low energy costs for most of 2015. The United States Energy Information Administration (EIA) is predicting yet another year of low energy costs.

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Diesel fuel is expected to rise slightly to $3.12 this year and fluctuations in fuel prices could occur throughout the year, but pricing structure is expected to remain low otherwise.

Low energy costs are expected thanks to Middle Eastern countries purchasing market shares by dropping prices, but not production. The United States on the other hand has seen producers of shale oil increase their output.

Transcourt. January 2015

Trucking rates are on the rise, but here’s what you can do about it

Oakville – The low trucking rates you’ve long enjoyed thanks to the falling economy and housing market are on the verge of an increase, which will end up costing both businesses and manufacturers.

Transcourt-Trucking

The increase is happening for a number of reasons:

  • Companies are shipping their businesses to the U.S., which means manufacturing will require allocation and transport to other centers, causing a strain on the transportation industry.
  • It takes anywhere from three to six months to obtain a commercial driver’s license. The wait time results in higher costs while waiting for drivers to finish training, thus contributing to higher trucking rates.
  • Interest rate increases prevent businesses from allotting more money to pay off debt and drivers, which can cause a driver shortage.

While some of these circumstances are not within the industry’s control, there are ways to minimize the effect of the rate increases. Consolidate routes into efficient systems and put parameters in place that allow for merchandise tracking and efficient processing. It will help keep costs down.

3PL Supply Chain Management can help reduce the impact because some 3PL management providers own their own trucks and eliminate the cost of hiring drivers, preventing businesses from spending additional capital on shipping needs.

Your business does not have to suffer from higher trucking rates with a 3PL transportation management provider.

Transcourt, January 2016