These days it seems that there are always delays in shipping. Amazon orders come late, restaurants run out of ingredients, and stores are out of stock. Although one may think there is not much that goes into transporting an item from point A to point B, there are many factors that correlate with the transportation market and how fast things move.
With produce season and inspection week among us, the Transportation markets are working overtime in recovery mode. We are still feeling the impact from COVID-19, the winter storms that shocked the system in the first quarter of 2021 and the Ever Given blocking the canal.
Unpredictable events create a shock to the system that cannot be planned for in advance. Therefore, when an event like this happens, the market must make up for time lost as well as the items already slated to take place. However, it is a bit easier to prepare for seasonal events such as produce season and inspection week. There is an added layer this year, as produce harvest season “[overlaps] with DOT Road Check Week” (Raetz). These are 2 events that dramatically affect the supply and demand within the trucking market.
Each year produce season “influences spot market pricing for van nationwide upward 5-11%” (Raetz). It is expected that this year we will be closer to the 11% (Raetz). This is attributed to the amount of tension in the industry and preparation for the summer food rush and the fact that the retail industry is continuously working on restocking. In addition, each Road Check week, which is only a “three-day event causes the load-to-truck ratio to spike for more than just the days of the event, as many drivers chose to be off the road or are put out of service to correct violations resulting from inspections. This effectively reduces active capacity in the network” (Raetz).
As trucking supply shrinks there are factors that cause demand to grow. The tax refunds and stimulus packages that have gone out have increased freight due to individuals spending their stimulus on goods that must be shipped. Although demand continues to grow, “supply can’t grow at the same level due to the structural limitations of… truck manufactures” (Raetz).
With the difficulties maneuvering the complicated and ever-changing supply and demand of the trucking market, we would like to remind you that Soren Transport can assist you in planning for situations like those mentioned above. We customize our services to each customer to ensure you are getting a service that is tailored to your unique needs and company’s needs. Visit https://sorentransport.com/shippers/service to learn more about how Soren can support you and your business.
Raetz, Steve. “The Current Trucking Market Experience: It Is Both Supply and Demand.” C.H. Robinson Blog, 19 Apr. 2021, www.chrobinson.com/blog/the-current-trucking-market-experience-it-is-both-supply-and-demand/.