Carriers and the transportation industry, in general, are going through a bit of a market correction this year. After a booming year for many carriers in 2018 with shippers scrambling to get goods across the US and paying higher prices, 2019 is on a downward trend. This is causing pain to the industry but it doesn’t have to.
Understanding the Oversupply
After a booming end to 2017 and a strong 2018, many carriers invested more heavily in equipment, trucks, and drivers. This was, in part, due to increased demand from shippers but also fears that the new ELD regulations would put more drivers out of service due to the new hours of service (HOS) limitations and stricter compliance.
Unfortunately for carriers, as they amped up their supply, retailers and manufacturers starting pulling back on their shipping needs. In 2018, shippers moved fast to book cargo and many carriers thrived in this competitive market, seeing rates rise. Now, in 2019, shippers are backing off and dealing with their own oversupply of inventory. The result? Trucking failures are up in 2019 to 640 in the first half of the year with more projected — even as shippers ready themselves for the holiday retail season.
Doing More with Less
While the retail and manufacturing market weathers its own storms, the trucking industry is learning that it can do more with less — thanks in part to better understanding of ELD regulations and increased efficiencies that those regulations fostered among fleets. Instead of keeping trucks off the road, the new regulations help drivers make better time and get more done.
With a comprehensive ELD and fleet management system, fleet managers, owners, and drivers have tools at your fingertips to keep freight moving quickly and efficiently.
- Better maintained vehicles make better time on the road.
- Less paperwork hassles (by ditching the logbooks) free up drivers to focus on the road and managers to focus on other parts of the business.
- GPS and mapping find alternative routes faster.
- Safer drivers use less fuel and get into fewer accidents that cost time and money
Market corrections can be painful, but the right technology allows your trucks and drivers to go farther and do more — all while complying with ELD rules and regulations. The market will come back. Shippers will need your fleet sooner rather than later. Make sure your drivers work smarter, not harder, with the technology designed to let your fleet and dollar go further. Contact Gorilla Safety to make the switch to a comprehensive ELD and fleet management system today!