Truckers have struggled the last couple of years as the pandemic wreaked havoc on the global supply chain. While 2022 left us feeling skeptical about a return to normalcy, we are seeing some blue skies ahead. Let’s look at where we are and what it means for truckers.
The Vitality of the Trucking Industry
Truckers play a pivotal role in the global supply chain, ensuring the efficient movement of goods from manufacturers to distributors and retailers. Over the past year, we’ve seen significant disruptions and delays, causing concern for the owner-operators and dispatchers alike. Fortunately, we’ve seen some improvements over the past year, including,
- Easing of the driver shortage.
- Improved working conditions and wages.
- Emerging technology to increase efficiency and driver safety.
In addition, we’ve seen investment in infrastructure as well as better integration between rail and road, reducing bottlenecks and streamlining supply chain processes.
The 2023 Supply Chain
While we continue to see persistent supply chain challenges, many areas have improved. For example, freight capacity for ocean carriers has normalized to near pre-pandemic levels. Domestically, we’re seeing a slowdown in inflation, but it hasn’t translated to market improvements yet. The labor market is growing slower than it was at the beginning of the year, which will continue to impact the supply chain. Simply put, there aren’t enough people for the jobs available to fill.
Add to this possible supply chain delays due to the March and April storms that affected multiple states across the US. While no manufacturers have reported direct facility damage, these storms could still place some constraints on the supply chain.
Material Lead Times
Material lead times are mixed, with some segments seeing improvements while others deteriorate. However, we have seen continued stabilization in forecasting, which translates to better inventory planning. This means better communication up the supply chain and the ability for distributors and retailers to contract out for shipments reliably.
The Outlook for Truckers
For truckers, the industry improvements we’ve seen mean better pay and working conditions, as safety regulations are being implemented following legislation. While overall improvement in the supply chain may still be a little further down the line, the stabilization of material lead times and better planning up the chain means more steady demand for drivers and a need for owner-operators to have reliable teams for business solutions and dispatch.
Stay On Top of Changes with REY Logistics
Let REY Logistics help you stay up to date on industry news and changes and manage your trucking business. If you’re an owner-operator on your own or in charge of a full fleet, contact us today to see how our solutions can enhance your business.