A new year is a new start, right? That’s at least what supply chain professionals across the country are hoping as we look to get past the bottlenecks and disruptions that characterized 2022. In this article, we’ll look at the bulk industry and what we, as 3PL freight brokers specializing in bulk freight, see unfolding in the new year.
What do industry experts want the government to do? National Tank Truck Carriers, Inc. – the leading bulk trucking industry association – recently joined 95 other supply chain organizations in signing an open letter to President Biden which offered possible solutions to the truck driver shortage. These solutions are summarized as follows.
It is important to note that these proposals relate to all drivers, not just bulk drivers specifically. But bulk trucking commonly attracts the best drivers from other transport modes, who are drawn by the higher pay of this specialized field as well as its comparatively favorable hours and working conditions. So, it follows that as more drivers enter the profession, more drivers will end up behind the wheel of a bulk tanker or dry bulk trailer.
2. Demand is high, rates are high, capacity remains low. From where we sit, manufacturing appears as healthy as ever. So, we don’t expect demand to subside much, if at all, in 2022 compared to 2021. This high demand for bulk trucking is offset by the driver shortage as noted above – which means that rates will remain high until supply and demand become more balanced.
This all means that 2022 is again a carrier’s market, which means that shippers need to become ‘shippers of choice’ in the eyes of carriers to secure capacity.
Some ways to do this include the following.
3. Shippers continue to turn to 3PL bulk freight brokers. With carriers strapped for capacity, shippers have had to look elsewhere. This sometimes leads them to scouting additional carriers – but do you really have the time and resources to vet carrier after carrier, hoping that one day one of them will be able to handle your loads?
Many shippers have – either in tandem with their carriers searches or, in some cases, instead of them – used the tumult of the past two years as an opportunity to get acquainted with 3PL freight brokers that specialize in bulk freight.
Whether you’re shipping your products via dry vans or bulk tanks and trailers, consider freight brokers as a key ingredient of your capacity-sourcing mix. Why? Because freight brokers have relationships with large networks of carriers – and access to the capacity those carriers can provide. So, forming a relationship with a freight broker is essentially like forming a relationship with dozens or even hundreds of bulk trucking carriers simultaneously (and its far less time consuming than forming each of those relationships yourself).
Best of all, freight brokers can fast track your “shipper of choice” status with carriers. A broker that specializes in bulk freight understands the carrier’s operational needs and can make sure that your product is an appropriate match for the carrier’s capabilities – and vice versa – while handling every last detail of the shipment.
To learn more about how a bulk freight broker can service your loads in 2022 and beyond, contact Bulk Connection today.