We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Trucking outlook: Tough road ahead for shippers, carriers

Trucking outlook: Tough road ahead for shippers, carriers

Inflationary rate environment to persist for the remainder of 2021, forecast says, as higher freight volumes continue to contend with tight capacity.

Newsroom_2021-Q3-Economic-Forecast_V1-1080x675.jpg
August 9, 2021
DC Velocity Staff
No Comments
The trucking industry outlook for the remainder of 2021 calls for the inflationary rate environment to persist, as elevated freight volumes continue to contend with stifled truckload capacity, according to an industry outlook from truckload carrier U.S. Xpress Enterprises.

The Chattanooga, Tenn.-based company released its Q3 2021 economic forecast August 5, revealing three key themes the carrier is watching in the second half of the year, including a shortage of truck drivers, economic uncertainty, and higher freight rates. Some highlights from the report include:

Driver scarcity will continue to impact truckload capacity. Additional stimulus checks and unemployment benefits continue to keep drivers off the road. Even as various state governments have rescinded pandemic unemployment benefits, there are still more than nine million workers with continuing pandemic claims.

“With that much labor sitting on the sidelines, we’re unlikely to see any quick relief for the driver shortage,” according to the report. “Carriers have introduced new perks and incentives, yet according to the American Trucking Associations, fleet sizes for large and small carriers remain down. Additionally, many company drivers are electing to run under their own authority, not necessarily increasing capacity, but resulting in reduced utilization and deeper fragmentation of the industry.”

Continuing challenges in the supply chain and uncertainty about consumption trends and economic growth remain. “Throughout the pandemic, we’ve seen how chaos and uncertainty can impact the supply chain,” according to the report. “Disruptions have impacted capacity, which impacts fleet productivity, which in turn exacerbates overall supply chain volatility. Retail inventories are still well below normal for this time of the year, and government research indicates inventory drawdowns in the face of labor and materials shortages. As more restaurants and in-person activities open, consumer spending could shift back to services and experiences, even as the leisure and hospitality sectors struggle to fill jobs.”

RFP (requests for proposal) season will see increased contract rates due to inflationary spot market activity. U.S. Xpress said it expects freight demand to remain strong given the broader economic recovery combined with the continued tailwinds from the Federal Government’s stimulus package, which the company said had a notable impact on operations in the first half of this year. On the supply side, the market for professional drivers remains challenging, which is helping to keep a lid on supply, the company also said. Such conditions are expected to continue to support spot market rates in excess of contract rates and a strengthening contract renewal environment through the remainder of 2021.

“These factors will continue to significantly impact carriers and shippers alike for the months to come, but as vaccination rates increase and the economy continues to re-open, we’re hopeful for a positive impact to the supply chain,” Eric Fuller, president and CEO, U.S. Xpress Enterprises, Inc., said in a statement. “Throughout the pandemic, our true heroes have been the truck drivers, warehouse and retail workers, logistics and supply chain managers, and a host of other front-line workers who have sustained lives.”
Trucking Trucking Firms
KEYWORDS U.S. Xpress Enterprises
  • Related Articles

    Trucking outlook: Tough road ahead for shippers, carriers

    Monthly index shows increasingly tough road for shippers

    Tough road ahead for transportation markets

Recent Articles by DC Velocity Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

Warehouse robots drive change in automotive plant

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Big and bulky last-mile delivery segment set for hot growth

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing