[Infographic] Capacity Crisis of 2018: Cause & Effect

The economy, the weather, new industry regulations—it seems as though today’s shippers have had everything going against them, including nature itself, as they tried to navigate 2017 and move on to see success this year. And these issues have only compounded to cause a truck capacity shortage that has caused even more damage to shippers’ bottom lines with effects that continue to impact business.

So where has the capacity crunch come from and how can shippers take steps now to come out on top as we enter 2019? A steadily climbing economy, increasing holiday sales, colder temperatures, an aging driver force and the introduction and enforcement of the Electronic Logging Device (ELD) Mandate have all led to a shortage of drivers and a loss in trucking capacity, which together make shippers unable to effectively meet the increased demand for their services and effectively bleed into other aspects of the logistics industry. Shippers can start to address these changes by working to strengthen their relationships with carriers, by obtaining private or dedicated fleets for captive, reliable capacity and by converting truck shipments to other modes of transportation, such as intermodal or rail. It’s also a smart idea to start tapping into the resources of 3PL carrier networks to gain access to more carriers and better rates.

The infographic below provides a great overview of the main causes and tangible effects of the capacity crunch hitting shippers in 2018 and helps reframe the situation with more details on the four ways shippers can take action to protect their bottom line in the years to come. If your organization is taking a bit hit from these market forces, take time to consider the four strategies you can employ to fight the capacity crunch and invest in your long-term success.

Are you interested in chatting more about capacity crunch or capacity management services? Contact CLX Logistics today to learn how our vast carrier network can alleviate your capacity issues.

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