U.S. Trucking Challenges

2014-08-29

Over the past several years, increasing truck power shortages have had a dramatic impact on all shipping lines and their ability to meet trucking demands, which exceed the current capacity for drayage services. Many factors contribute to the current truck power situation which continues to tighten. Among those include:

• Driver shortages- it is estimated that the trucking industry has 30,000 to 35,000 unfilled driver positions. Driver turnover rate is currently at 92% and has averaged greater than 90% over the past 2 years.

• Increased demand for services as the U.S. economy recovers from the recession.

• Increased Government safety regulations and Port/Rail congestion reducing the amount of driver service hours.

The wide-spread trucking shortage has not only impacted service levels, but it has put an upward pressure on market rate levels. While we continue to partner with our core carriers to maintain service and rate levels, given the current industry environment, execution of inland moves in the days and weeks ahead will be challenging. As such, we will have no recourse but to recover the increased cost associated with this truck power shortage.

As we face these challenges, we ask for your continued cooperation in providing us with as much lead time as possible when requesting Intermodal services. We appreciate your continued support and will do our part to minimize the effects to your supply chain.