As we round off 2021, Elder Logistics knows that there are still plenty of issues the industry faces. One of these pain points is the growing trucking supply-chain economics problems. It’s a controversial topic that many businesses have a stake in, and it’s one that we believe needs addressing head-on.
Though this topic may be divisive for many people, the truth of the matter is it needs to be addressed. Creating efficient short-term, and long-term, solutions is at the heart of what we aim to do. Bringing to light these issues is just one way we hope to continue the dialogue of the growing anxiety and uncertainty growing across the nation and the world.
With that said, in today’s blog, we’ll be looking at three main problems with trucking supply-chain economics.
Demand is High; Supply is Dwindling
It’s no secret at this point in the industry, that the demand for goods has only increased dramatically since the shutdowns throughout the entire world. Regarding dwindling supply levels, the freight industry’s main problems are increasing shipping costs and issues with restocking, economic recovery, and limited driver availability.
Dealing with higher demands with limited resources to meet those demands means losing customer satisfaction and potential profits. Recently, the Port of Los Angeles announced that they would be operating 24/7 for the foreseeable future. Though this is a limited-time exception, this may become the new norm until engrossed port buildup is successfully dealt with. A measure of success can be the amount of time between cargo arriving and leaving the shipyards.
Ports Buildups, Delayed Deliveries, and Insufficient Support
Due to the onslaught of COVID-19, there is plenty of adverse health and economic effects for both people and businesses. These logistical challenges are unique to the times we’re going through. In fact, the port of Los Angeles also is facing issues of getting cargo taken out of their ports.
Pulling information for the Wall Street Journal (WSJ), one of their recent mini documentaries titled What America’s Supply-Chain Backlog Looks Like Up Close, shares incredibly damning insight into this problem, “Port tarmacs normally operate at 60-80% capacity…Now, officials estimate they’re at 90% of capacity.” The build-up is getting out of hand, and is requiring more attention from professionals and every-day people who can help in figuring out how to better alleviate the many issues plaguing the port.
No Easy Solutions
Many freight companies are facing delays in their deliveries of tangible goods from the lack of support they have diminishing truck drivers available to haul loads across the nation. Many companies and organizations are having to get creative with how they deal with the growing problem.
Some freight companies are being transparent with their business partners and letting them know ahead of time about the expected delays to come. For larger freight companies, they are able to increase the different avenues of shipping their products to the US and abroad. Either way, freight companies are having to deal with finding multiple solutions in a greatly constricted time frame.
At Elder Logistics, we’re handling the situation with a can-do mindset and pushing through the hardship with a winner’s attitude. Though there may not be any easy solution or fix for what we’re all experiencing in the freight industry – we’re handling it with tact and grace. We still ensure product integrity and are always diligent in answering your questions regarding shipment delays or rerouting to a new destination.
If you’re looking for new logistics solution to your freight needs, feel free to reach out to us. Speaking with one of our customer service specialist, or even our management team, can help answer any valid concerns or questions you may have.
We look forward to helping your business through these tough times. Here’s to trucking through difficult times together!
All the Best,
Elder Logistics team
Golle, Vince. “Supply Lines U.S. Trucking Freight Rates Rise Most in Decades.” Bloomberg.com, Bloomberg, 17 Nov. 2021, https://www.bloomberg.com/news/newsletters/2021-11-17/supply-chain-latest-trucking-freight-rates-surge-most-in-decades.
Lockridge, Deborah. “HDT’s 2021 Newsmaker of the Year: Supply Chain Crisis.” Equipment – Trucking Info, Heavy Duty Trucking, Bobit Business Media, 7 Dec. 2021, https://www.truckinginfo.com/10157414/hdts-2021-newsmaker-of-the-year-supply-chain-crisis.
Ngo, Madeleine, and Ana Swanson. “The Biggest Kink in America’s Supply Chain: Not Enough Truckers.” The New York Times, The New York Times Company, 9 Nov. 2021, https://www.nytimes.com/2021/11/09/us/politics/trucker-shortage-supply-chain.html.
Rosenbaum, Eric. “In Global Supply Chain with No Quick Fix, Companies Are Paying to Ship Air.” CNBC, CNBC, 27 Oct. 2021, https://www.cnbc.com/2021/10/27/in-supply-chain-with-no-easy-fix-companies-are-paying-to-ship-air.html.
Wall Street Journal. “What America’s Supply-Chain Backlog Looks Like Up Close.” The Wall Street Journal, Dow Jones & Company, 22 Oct. 2021, https://www.wsj.com/video/series/on-the-news/what-america-supply-chain-backlog-looks-like-up-close/388D6F02-5BCD-43AD-A3EE-B945F7373983.