How are supply chain issues affecting transportation? Drivers have a positive outlook at the moment. Overall, shipping delays and port backups are creating good opportunities for freight haulers. Job openings for truckers continue to rise as demand for drivers outpaces the supply. Here is how supply chain disruptions are affecting truckers right now.
There is a new term floating around called “freight-flation.” Freight-flation refers to the high value for transportation services and equipment because of limited carrier capacity. There is a rise in new authorities, so expect new haulers to be stepping in to help ease the strain on transportation supply, but experts forecast that there will continue to be a driver shortage for the foreseeable future.
Supply Chain Strain
There are labor shortages in warehousing which is causing port backups, but there are also shortages in carrier capacity to move freight. This shortage is creating a good environment for truckers looking for loads. The supply of loads is outpacing the supply of truckers. So, it is a good time to haul freight.
The American Trucking Association states there is a shortage of around 80,000 drivers. They expect this number to rise and double by 2030. Compared to 2019, the average weekly earnings for drivers are up more than 25%. Industry leaders need to make hauling more attractive to encourage younger and new drivers to fill in the open positions caused by retiring truckers.
Non-Recourse Factoring to Offset Supply Chain Chaos
Fuel costs are high, but the supply chain chaos is still creating a good atmosphere for truckers and transportation services. On the other side, transportation debtors will be hit by the supply chain chaos. So, it is important that carriers partner with the right financing company to ensure they get paid for hauling. Eagle Business Credit and Cashway Funding offer non-recourse factoring services. With non-recourse factoring, you can safely take loads without the fear of customer nonpayment. The factoring company guarantees you get paid, and if your debtor does not pay for your load, the factoring company is on the hook, not you personally.