Recent Changes Put Strain on LTL Market

Long haul truckAs many of us are aware, the U.S. transportation and shipping industry has been facing many issues since the beginning of the pandemic in April of 2020.

Since this time, there has been a dramatic increase in the amount of online shopping which has put a great strain on the industry. When you couple that with a decrease in the number of new drivers coming into the industry, it has become extremely difficult to perform shipping and transportation duties as usual.

This has led to several problems that include increased shipping costs, longer wait times and more. While these issues are projected to continue in the near future, it is important to note that we are doing everything we can in the LTL market to get products out to the people who need them as quickly and affordably as possible.

Online shopping is at an all-time high

Currently, the U.S. transportation and shipping industry is seeing an all-time high in shipping capacity thanks in large part to the dramatic increase in e-commerce over the last year and a half.

Since the beginning of the pandemic, it is reported that e-commerce (online shopping) has seen a 31% increase and shows no signs of slowing down. Many shipping companies have reported that they are now shipping nearly double the amount of goods as they were before the pandemic.

While consumers were forced to shop from home last year, many found this was a more convenient way of doing their shopping and have continued to do so as COVID restrictions have loosened.

The number of available truck drivers is down

Another strain that has been put on the industry is a shortage in the number of drivers available.

It has been reported that during the pandemic there was roughly a 40% decrease in the number of drivers graduating from commercial driving schools. A large number of truckers also decided it was the right time to retire, putting even greater pressure on the industry.

Larger freight sees an increase in cost

With an increase in demand and fewer drivers available, many carriers have been forced to make changes to their overlength fees beginning this November.

If overlength freight is 8 feet and above, these have been the proposed shipping prices (with the possibility of rates fluctuating slightly):

ODFL

  • 8 feet and greater = $1000

SEFL

  • 8 feet but less than 12 feet: $500.00
  • 12 feet but less than 20 feet: $750.00
  • 20 feet and greater: $1000.00

RLCA

  • 8-12 feet – $170
  • 12-16 feet – $300
  • 16-20 feet – $500
  • 20-24 feet – $770
  • 24 feet and greater – $1540

SAIA

  • 8-12 feet – $250
  • 12 feet or greater – $1000

ESTES

  • 8-12 feet – $185
  • 12-16 feet – $265
  • 16-20 feet – $385
  • 20-28 feet – $750
  • 28 feet and over – $1,000

While many businesses, including ours, cope with the increase in prices and greater shipping demands, we promise to do our best to deliver all the ground engaging tools and attachments that we always have for our construction and mining clients.

We ask that you call on our team at Texas Contractors Equipment Inc today for all your equipment needs from top brands such as ESCO®. We’ll do everything in our power to get your tools to you on time and at our always competitive prices.

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