Factors that Affect Shipping Capacity Today

In recent years, the freight shipping capacity has been declining. This has significantly
affected the cost of shipping and methods used in transporting freight within and across
the borders. These changes can be attributed to the changing trends and regulations of the
trucking industry. When you understand these factors, you’ll be in a position to adjust
your business process and also manage expectations for your clients and all other parties
involved. We’ll go over some top 5 factors that affect the freight shipping capacity and
how to increase your chances of getting your cargo on the road.

A limited number of drivers

The shortage of drivers in the trucking industry has vastly affected shipping costs. Part of
the reasons for this shortage includes new regulations that put restrictions on truck
driving, low levels of unemployment as well as the aging driver population. With not so
many qualified driver applicants, the industry is experiencing a massive shortage that in
turn causes the cost of shipping to hike. Carriers offer better incentives to drivers in order
to secure them and this extra cost trickles down to the customer.

The new ELD regulation

Since December 2017, every truck driver is required to have an ELD when shipping
cargo. This electronic logging device is attached to the motor vehicle engine and is
required to record driving time as well as the hours of service and miles driven. This new
regulation is expected to intensify the driver shortage further as many experienced drivers
may not be compliant quick enough.

More eCommerce

As eCommerce businesses continue growing in popularity, the demand for shipping
goods from Toronto throughout Canada and beyond will only get worse. This ever-
increasing demand for shipping services will affect the cost. More and more businesses
will need to invest in shipping services to fulfill their online orders and guarantee
customers a great shopping experience.

Changing manufacturing needs

Manufacturing is growing at a fast rate. This means that more raw materials will be
required to be used in the manufacturing process which increases the demand for
shipping. Additionally, the finished product is sold in different regions in Canada and
beyond which adds to the demand.

Severe weather and climatic conditions

Whenever there are natural disasters, the entire supply chain is disrupted. This means that
shipping in the affected regions is put at a standstill. This makes it even more difficult to
get reliable shipping services from carriers. Adverse weather and natural disasters can
cause unexpected delays that affect business all over the world.

With the factors above in mind, you need to make adjustments to your shipping practices
and employ tactics that will enable you to streamline your business. Working with a
reliable carrier can help you get access to the best shipping options available. This will
help you to keep costs down and your customers fully satisfied. If you have a shipment to
book, speak to an expert at Amplify Logistics. We’re happy to find the right solution for
your needs.

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At Amplify Logistics, we provide efficient, personalized transportation logistics. We use words like stability, sustainability, commitment and network optimization different.