How High Demand Seasons Affect Freighting

 

With the boom of e-commerce over the last decade, there is always a need for well-stocked fleets of trucks on the road. But when produce and crops are ready for harvest, the demand for the armada expands even more. It may not be noticeable to the average consumer, but these busy seasons put a tremendous strain on an already thin shipping workforce.

Alex Azeredo of The Logistix Company joined today’s MarketScale Transportation podcast to explain freight pricing and industry profitability during high-demand seasons.

Currently, there is a huge demand for trucks but a small supply of drivers. This means that there is a growing demand for shipping that shipping companies simply cannot keep pace with. On top of that, the supply may soon get even more limited because, according to Azeredo, “The average age of a truck driver is 67 years old, so it really does affect us with the younger generation not stepping up and fulfilling those driver jobs.”

Inspiring the next generation of truck drivers is critical to the retail and produce ecosystems unless another innovation can find a way to get people’s products to their doors and stores in the near future. Azeredo explains how rising rates during these high demand seasons, coupled with a waning workforce, is stretching the industry thin, and what a more flexible future could look like.

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