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.
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