The shipping industry is an incredibly dynamic one, subject to frequent fluctuations. Why is this important for business owners? Because the overall capacity of the shipping industry at any given time can influence a company’s shipping costs. If your business relies on shipping, in order to streamline your budget and look ahead to future expenditures, it’s essential to have your finger on the pulse of the shipping industry itself.
Driver Availability
There is a significant gap between the demand for truck drivers and the availability of qualified, trained drivers. This situation has grown worse over time, and currently, there are thousands of truck driving jobs that need to be filled. To reduce the risk that a driver shortage will affect your delivery needs, you can partner with a delivery company with a low turnover rate that prides itself on treating drivers like family.
Regulatory Changes
Big rigs are some of the most potentially dangerous vehicles on the road today, given their weight and size. It’s no surprise that the transportation industry is subject to strict regulatory requirements. When new requirements are passed, it can affect the total capacity of the shipping industry.
Demand Fluctuations
When there is a greater demand for something, the supply of it will go down and its price can increase. In this case, there has been a considerable increase in demand on the shipping industry as a whole in recent years. This is partially thanks to the explosion of the e-commerce sector.
Manufacturing Increases
Although e-commerce is a major factor in determining the capacity of the shipping industry, it’s not the only one. When domestic manufacturing increases, there is a corresponding increase in the demand in shipping. This is because manufacturers need to take more deliveries of raw materials and send more deliveries of finished products.
Although the shipping industry and related costs can fluctuate from time to time, Xcel Delivery Services consistently offers competitive quotes to our customers. Our expert team offers customizable options, like less than truckload, dedicated fleet delivery, and scheduled and routed services. Get in touch with our office in Phoenix today at (602) 368-1300 to request a quote for your shipment.
