Transportation Industry Update

Posted by Doug Frassa on Sep 17, 2014 1:39:00 PM

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This is an update on various regulations and events within the transportation industry that could potentially have an impact on your business. The information for this update was provided to QualiChem from the many transportation companies that we interact with on a daily basis.

General road transportation is tight across most transport modes. Full truckload capacity remains tight; and LTL shipments are increasing due to growth and full truck load capacity shortages. Liquid bulk truck capacity remains very tight across all regions. We are seeing transit times expand in some cases to well beyond what has been typically seen; in some areas of the US the procurement times exceed 7 working days in order to secure a trailer.
 
Driver availability also significantly impacts the time required to secure a shipment. The industry is faced with an aging driver population. The 2008 recession eliminated 15% to 20% of driver capacity which has not been replaced. Increased regulations [CSA requirements, new HOS (hours of service) regulations implemented in July 2013] have reduced driver capacity 4%.
 
The US rail system is experiencing backups and delays at major rail yards across the US. More railcars are in use; yet there is no increase in the number of tracks or rail yards; as a result more and more railcars are waiting in line at rail yards to be offloaded or switched out.
 
The US transportation industry anticipates capacity will be impacted through 2015 and beyond.
 
QualiChem will continue to work with our transportation partners to minimize the effects of this shortage; however please be aware that lead times for LTL, full TL, and liquid bulk shipments may be negatively impacted because of the lack of availability of trucks and drivers.
 
QualiChem remains proactive and continues to work with multiple carriers to stay ahead of this issue as best we can. We will also keep you updated of any other transportation issues as they develop.
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