According to transportation analyst Noel Perry, we’ll have capacity utilization above 100% for six month at least. Good thing about it could be increased rate up to 10%. Higher rates could encourage shippers to grow their own fleets.
All this is coming as a result of U.S. growth. Low inflation and interest rates combined with increased consumer confidence will continue contributing to this growth.
In situation of growing demand, less miles and especially less drivers per truck mean the fleets will have to improve the truck productivity. Hower, regulatory with current federal limits are not helping, and large companies are already pointing at this. The biggest argument against them is increased safety risk due heavier trucks.
Manufacturing and DC’s
As the energy costs getting lower and automatization getting implemented more and more, low-cost labor won’t matter that much. In other words, companies are bringing back manufacturing facilities to U.S.
Furthermore, to get maximize use of intermodal distribution centers will be put closely to rail lines, and to make same-day delivery DCs will have to be closer to customers.
Source: www.elsalvador.com/
Meeting customers demands ain’t the only reason why companies will open new DC’s. Truck drivers shortage can also help to drive this trend. I’ve already mentioned that one of the main causes for this issue is a lifestyle.
