Trucking industry has seen record volatility over the past two years and the next few months will not be much different. There has been quite a few challenges across supply chain and logistics that are the reason for level of uncertainty we see today in Trucking, particularly upcoming holiday season of the year 2021
Let’s evaluate some of the Holiday Season Impacting Factors that we as part of industry should be aware of.
- On going driver shortages: It has been estimated that there will be a shortage of over 20,000 truck drivers across Canada, this intern indicates that we don’t have enough drivers to move loads at the time they’re needed.
- On going equipment shortage and delay in supply: Along with huge number of driver shortage, there is a shortage of trucks and truck parts, there are long wait in between the order placed and the actual delivery of trucks and related parts. This may result in scenarios where driver is available, but there is no truck to haul the goods.
- Volume limits: The above two reasons or factors of driver and equipment’s shortages, there are limits to the amount of volume available to ship goods. In case even if the goods are ready to be sent, there may not be available loads, containers, trucks, drivers, dispatchers or staff available to deliver the good at the destination.
- Capex Increase : incongruities with supply and demand over all in every sector especially in trucking, prices of goods have gone high beyond comprehension, and spot rates are higher than ever. Inflation has been felt over all at the business and individual levels.
- Workforce shortages: Given the situation that things are still in recovery phase from COVID, there has been consistent shortage of available workers in retail, shops, warehouses, distribution location, manufacturers, brokerages, trucking companies and more has highly impacted the trucking industry in general and overall supply of the needed items.
- Cross Border Delays: All of the above factors has caused an ongoing congestion at every port of entry.
- Fuel shortage: This shortage in particular is still causing problems around the country including both Canada and US, and gas/fuel prices have risen significantly in last few months.
What is needed at this time is the right planning and distribution of manpower, equipment’s, supply chain across the nation.
