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Trucking Capacity and Rate Outlook for 2017

 Trucking Capacity and Rate Outlook for 2017

According to the American Trucking Associations, the trucking industry is currently short around 48,000 drivers with that number expected to surge to 890,000 by 2025. 1This increase will be gradual, however, there will be a noticeable tightening by mid-year 2017, FTR Associates predicts.

Shippers/Carriers Hit Hard by Chargebacks

 Shippers/Carriers Hit Hard by Chargebacks

Vendor chargebacks can be costly, with shippers and carriers being hit hard with financial deductions on their invoice for a number of violations.  Common chargebacks include late/early shipment arrivals, paperwork errors, invalid advance ship notices (ASNs), utilizing the wrong carrier, incorrect packaging/labeling, shortages, damage…the list goes on.  Examples of penalties from one such vendor include 10% off the total shipment invoice for late arrival, $195 for each incorrect bill of lading, $10 per carton for an invalid ASN, and $5 for each incorrect label.1

Customer Retention Suffers as Drivers Lack Quality/Skill

 Customer Retention Suffers as Drivers Lack Quality/Skill

Drivers are said to be one of (if not the most) important asset for trucking companies.  Not only are they responsible for the successful and safe transportation of products, but overall act as brand ambassadors for their company, often spending more time with customers than traditional salesmen.  The impression they leave behind plays a large role in customer retention as a negative experience can lead to lost future sales while a pleasant and memorable experience can cause a shipper/consignee to want to increase their business together.  Knowing this, it comes to question as to why many carriers would hire less than qualified drivers to represent their company.  Perhaps to fill capacity restraints?  Or maybe because they do not have to pay them as much as they would an experienced/skilled driver?  Whatever the case, industry experts agree that the quality of drivers is decreasing.