A shortage of truck drivers is the biggest issue the trucking industry faces right now, and it is having a negative impact on related industries as well.
Jonathan Franssen of William Edwards Inc./Team Logistics, encouraged that the driver situation is “going to get better; it takes time.”
Additionally, increases in fuel charges are contributing to the escalating rates charged by trucking companies, saying that in some cases, the rates have increased by more than $100 in the last year.
The driver shortage has lead to larger trucking companies buying out smaller operators.
In the meantime, Franssen suggested that dedicated lanes and dedicated drop trailer locations will help to ease the situation and keep costs down because they will help to keep the trucks moving.
The scrap industry does not have the best reputation as far as the trucking industry is concerned, he said, adding that the loads take a significant toll on their equipment.
Franssen concluded by saying that while on-time shipments are suffering in light of the driver shortage, the situation should ease in 10 to 14 months.
Casey Carmody of CSX Transportation discussed the operational issues that are putting stress on the rail industry fleet now that the economy is showing signs of improvement.
He said that rail offers savings over trucking because of the economies of scale that it offers, with rail cars capable of holding the cargo of from two to 3.5 trucks.
CSX has access to 95 paper mills in the eastern U.S., Carmody said, which offers natural opportunities for backhauling. He also offered that for those companies not located directly on a railroad spur, cross-docking opportunities are available.