New Sound Transportation

Some of the biggest trends in freight transportation in 2018 are how shipping companies in Seattle approach the driver shortage. It comes at a strange time when the economy is strong, with a stable GDP that should hold for the near future. Instead of being a slam-dunk for freight transportation, it is the story of companies having tons of opportunities but not enough workers to take advantage of them. Driver shortages continue to decline across big and small companies, leaving much solid business on the table. Business on the table is lost money, or at the very least missed chances for growth.

Another trend that is worth mentioning in 2018 has been around since the driver shortage started years ago. Poaching drivers is a genuine threat to small freight transportation businesses. With drivers becoming a hot commodity, bigger freight companies Seattle are offering better incentives for new and veteran drivers. This has attracted many workers that were already looking for a switch, with a few leaving on bad terms from their old company. Without the usual two weeks’ notice, a smaller company can face much more significant problems in an already competitive industry. If the driver shortage balances itself out late in 2018, then there is a good chance it will meet with the rise in oil price.

Around the mid-year mark, oil prices should be above $70. If it holds, then there will be an influx of workers coming out of training and getting their trucks. Companies that prepare for this will have a fleet of workers ready to go for a late-year push without having to worry about exorbitant fuel prices. This is also assuming that a company can match freight transportation positions for qualified workers. Unless a company has specifically contracted/paid for a worker to go through training, then they will go to other companies on a first come/first served basis. So if positions are not available when a worker gets out of training, then that is a lost driver regardless of a company’s needs.

When not looking at worker shortages in 2018, the ELD mandate is front and center. Depending on how much it is enforced, the ELD mandate will change the way many freight transportation companies do business. The ELD mandate will be positive for some while others will be forced to change the way they operate from the ground up. Just like the worker shortage, being prepared is the only way to soften the blow.

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