Page 28: of Maritime Logistics Professional Magazine (Mar/Apr 2018)

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INSIGHTS “The ELD mandate was the tipping point for the shortage. Limiting the hours drivers spend on the road means truckers are forced to earn less as they are forced to stop when the stopwatch starts. While this was understandably implemented for safety reasons, it has also severely crippled logistics.” as they may see major rate increases and/or face signifcant or schedule a trucker in advance. With the current crisis, we’re struggles to ensure reliable deliveries. seeing an unprecedented number of delays and cancellations

The crisis has worsened to the point where current truck- and have had as many as three last-minute truck cancellations ing rates – spot, contract, or LTL – are increasing despite in a single week. what is supposedly a relatively weaker timeframe. And the At iContainers, we are warning clients about the ongoing cost increases aren’t limited to paying more for truckers. Ad- problem and helping them fnd other solutions. At the same ditional costs take the form of storage and demurrage while time, we’re constantly adding truckers to our trucker portfolio, awaiting a driver. After all, which is an important and necessary step. But no matter how time is money. many truckers or drivers they may have, shippers are still fac-

Freight forwarders are at ing shortages. A trucker that has 70 trucks has a general vol- particular risk because they ume to ensure that those trucks are booked in advance almost have to cover the entire coun- every day, so last-minute bookings can be challenging. This is try and handle all kinds of especially so for unanticipated changes such as truck damage, shipments. This often comes which throws the cargo off schedule, or rescheduling of driv- with very little time to plan ers to cover the truckers’ key accounts.

Despite the severity of the situation, we are not yet at a turn- ing point. As the crisis deepens, rates will need to increase as a lure to attract more drivers into the container trucking sector.

The playing feld also needs to be evened out to make sure the driver makes a proper living given the sacrifces he or she makes. Unfortunately, this isn’t something that will happen in days, nor weeks.

LOOKING AHEAD

There have been reports of an increase in the truck- ing order book, which some say indicate a capacity in- crease. Assuming all orders go through, these trucks 28 Maritime Logistics Professional March/April 2018 | |