Trucking Capacity Demands Remain in Flux
The trucking industry is constantly experiencing dynamic shifts in capacity. Consumer demands, economic trends, supply chain disruptions and regulatory changes can all affect supply and demand for trucking services. The fourth quarter often experiences a surge as retailers meet increased holiday demands.
Tim Denoyer, vice president and senior analyst at ACT Research, said that overall demand is in slow growth mode, but it is experiencing volatility given the aftermath of severe weather in North Carolina and Florida and concerns over port strikes along the East and Gulf Coasts.
“The recent hurricanes should support demand next year, and the ongoing port strike is causing supply imbalances with negative effects in the east as demand shifts west,” Denoyer said.
U.S. dockworkers and port operators went on strike for three days at 36 ports in early October but reached a tentative agreement and extended their master contract until January 15, 2025. Denoyer said even the brief strike led to relatively indiscriminate panic buying. Although it was temporary, it forced trucks into motion.
Any disruptions at ports, whether due to strikes, extreme weather events or geopolitical tensions, can create demand surges as companies rush to move goods through the supply chain or consumers opt to stock up on goods.
Plus, holiday sales are expected to increase this year, which could increase demand for trucking. A forecast by Mastercard estimates holiday sales will grow by 3.2% in 2024.
There are several proactive measures fleets can take to meet fluctuating capacity demands. These include:
Utilizing Truck Leases: Leases provide flexible, scalable capacity without an upfront capital commitment. Fleets can utilize short- or long-term leases depending on their needs.
Ramping Up With Rentals: Companies can utilize rental trucks for immediate, short-term capacity. Rentals can help companies ramp up and down quickly due to seasonal or temporary surges or short-term business demands.
Adding Trailers: Adding leased or rented trailers can help fleets meet increased demand. In addition to providing more capacity, they can enable drop-and-hook operations that minimize driver downtime and facilitate cross-docking to speed the transfer of goods from one trailer to another.
Using Third-Party Providers:Freight brokerage can help companies meet additional freight needs by connecting them with third-party providers. Most trucking companies within the U.S. have one to five trucks, and these smaller carriers make up more than 85% of the trucking market. Brokers can aggregate that capacity, making it available to others in the industry to meet surges.
Let Us Help
Penske has a wide range of services for fleets and shippers needing to adjust their available capacity. In addition to full-service truck leases (including some short-term options), Penske has more than 50,000 commercial rental vehicles available, including high-roof cargo vans, straight trucks with liftgates, and Class 8 tractors.
Penske also offers full-service rentals and leases of 48- and 53-foot dry van trailers; 53-foot refrigerated trailers and flatbed trailers, which include trailer maintenance and roadside support; and used trucks available for purchase. Additionally, Penske Logistics has more than $4.4 billion in freight under management for customers and offers a range of logistics services.