Today’s Trends in Trucking and Supply Chain

May 5, 2022

 

When it comes to global supply chain issues, there is no greater source than FreightWaves, the largest media and market-level data provider in the logistics and supply-chain industry. Tyler Kern welcomed Craig Fuller, CEO & Founder of FreightWaves, to Resources for the Road for a brain-picking session on what’s happening in logistics today, and ‘spoiler alert,’ there’s a lot happening.

To understand the logistics today, Fuller said it’s essential to look at what occurred before the pandemic during what the industry coined as the trucker bloodbath. Due to massive expansion, trucking capacity outweighed demand for a couple of years before 2020, “The market slowed down just enough to cause a situation where trucking spot rates dropped significantly; demand drooped significantly to where the total number of trucks in the market, and companies with marginal balance sheets and unit economics could not survive,” Fuller said.

These factors led to a lot of trucking companies going bankrupt in 2019. Boom and bust cycles occur more often than most people recognize, according to Fuller, and these cycles tend to ebb and flow every three years. Today, trends in trucking show that the market is robust, and many new trucking companies are entering the mix, “Many of those carriers will do quite well, but some of those carriers, particularly those that went beyond a single owner-operator entering the market, but maybe they added 50-100 trucks, are probably at the greatest risk,” Fuller said, “They have gone well above their ability to run a company at scale and run one well.”

Fuller mentioned the trucking market is already beginning to soften, even though the warmer months typically bring more volume. So far, in 2022, that hasn’t been the case, but there will be a lot of watchful eyes on the situation over the next few months.  

Recent Episodes

logistics
View episode

The world of logistics and supply chain management, often hidden in plain sight, is a colossal industry that intricately weaves through the fabric of our daily lives. Despite its monumental impact on the global economy, it quietly powers forward, unseen and uncelebrated. As we stand at the cusp of a technological renaissance, the logistics […]

Transportation safety and telematics
View episode

In an era where technology is rapidly transforming industries, the transportation and logistics sector stands at a pivotal point. With advancements in connectivity, electrification, and autonomous technology, companies are redefining how goods and people move. One such company at the forefront of this revolution is Clarience Technologies, which has evolved from its roots in […]

education to entrepreneurship
View episode

The trucking industry faces both challenges and opportunities. Still, the story of transitioning from education to entrepreneurship within this sector highlights a unique journey of growth and innovation. Hammer Down, hosted by Mike Bush, examines this fascinating intersection, featuring Trey Griggs, the Founder & CEO of BETA Consulting Group. This episode explores Griggs’ remarkable […]