Times are Changing
Executive Vice President // Gulf Winds
This statement isn’t just true for shopping malls, restaurants, or airlines. The same song rings true for transportation companies nationwide.
The economic recovery crystal ball is murky at best. “V” shaped and “U” shaped forecasts have subsided into a very volatile “W” Shape. That said, trucking capacity dynamics do not run in perfect tandem with the broader economy. Simply put, there are too many other variables at play.
What you should know:
- Port volumes nationwide are down 10-15% compared to 2019
- The volume that is moving, flows on larger ships, and fewer routes due to blank sailings – creating inconsistencies for trucking companies.
- PPP assistance for many small businesses (including trucking) ran out in June/ July.
- Insurance increases are topping 30-40% annually for multiple years in a row. The surge does not allow for trucking companies to recoup from customers.
- Increases in insurance requirements from $750K to $2M legislation being proposed nationally.
- We see the bankruptcies of small trucking companies to continue, as well as companies quietly shutting down.
What you can do:
- The time to reassess your drayage providers is now. There is too much risk currently in the supply chain to stay idle.
- Technology: Work from home has amplified the need for web-based tracking, customized reporting, and increased visibility. Gulf Winds offers complete visibility through gwiTrack to all customers, for FREE.
- Safety: How’s your provider’s safety culture, risk management, and investment in technology helping to mitigate the risks of the insurance market?
- People: Is there a culture of training and development to sustain the needs of your business long term?
The times may be changing, but we stand ready to serve.
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