Preparation key to managing capacity limitations

Industry Insight

Preparation Key to Managing Capacity Limitations

As your freight carriers work around the clock to recover from some of the harshest winter operating conditions to date, you may not consider preparing for the upcoming months a top priority. However, while the huge backlogs slowing freight transportation across the country may appear to be easing up, we’re not in the clear yet.

One factor that will contribute to a further tightening of capacity is the improving U.S. economy, particularly in the manufacturing sector. With US capacity utilization currently sitting at about 98%, Jonathan Starks, Director of Transportation Analysis at FTR Transportation Intelligence warns that “it would only take a relatively modest and short uptick in the industrial sector for capacity to tighten significantly further,” and recommends monitoring manufacturing data to see how this growth continues in the months to come.

A second warning comes from Noel Perry, a senior consultant with FTR, who argues that in addition to an improving U.S. economy, there is also the threat of the Federal Motor Carrier Safety Administration (FMCSA) imposing tighter restrictions on the industry, much like it did with the hours-of-service reductions in 2013. Perry argues that while the “current economic drag on capacity is modest, the regulatory drag significant,” and that should the FMSCA move ahead with some of their claims, it would bring the capacity issue to a whole new level.

 

The Solution

Freight Management Logisitics Companies

A promising alternative may be looking to freight management logistics companies, such as Bulk Plus Logistics, who provide supplementary transport means to suppliers whose current carriers have reached capacity. Bulk Plus Logistics specialize in helping businesses with fluctuating, on demand and irregular transportation needs. In addition to filling the gap with current carriers, we can also help companies by minimizing down time, lowering operating costs, reducing risk and significantly improving delivery times.

 

Next Steps

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