The current market conditions within the U.S. truck transportation industry are creating significant challenges for thousands of carriers nationwide. The National Truck Index (NTI), which measures the national average spot rate, is currently at $1.49 a mile, lower than 2019 averages. Truckload tender rejections, a market indicator measuring load volume and U.S. carrier capacity, are currently at an all-time low of 2.53%. This means carriers are desperate for freight and will accept bargain basement pricing just to keep their trucks moving. Low freight rates favor shippers in the short term but create deep strain on small and large carriers alike. Truck drivers and their companies earn less profit, which is bankrupting carriers and forcing thousands of people out of their jobs. Carriers who accept garbage rates end up taking loads regardless of the delivery destination, making it harder for some drivers to get backhauls out of certain markets.
But this glut in capacity is also contributing to the way that shippers focus on the strength and resilience of their supply chains. Shippers are also struggling to balance their inventories as the drayage market has also seen a significant slump in container volume. Uneven growth and declining market forecasts in the U.S. truck industry have been a catalyst for change. Shippers have taken advantage of these conditions by partnering with a single source logistics provider to help manage their supply chain.
What is a Single Source Logistics Provider?
Single source logistics providers are experienced companies that provide multimodal freight options that connect shipments from water to the street. They are typically asset-based companies that own and operate their own fleet of trucks, employ company drivers, and own and manage their own equipment. Further, single source providers own warehouse and transloading facilities, which provides expedited solutions for freight forwarders and global shippers with container volume in North America. Furthermore, single source providers have dedicated freight solutions that cover FTL and LTL options for all cross-border and U.S. domestic shipments. PortCity combines decades of industry experience and the latest technology available to ensure shippers are never left in the dark about the status of their live loads. Here’s a more detailed description of the value-added services PortCity offers customers:
Port Drayage
PortCity offers dedicated solutions to cover the drayage needs of customers who ship to any of the major North American ports. As an asset-based provider, Port City offers top-of-the-line service by utilizing:
- Company drivers
- Company-owned trucks, chassis, and trailers
- TWIC-certified drivers
- Bonded loads
- Port-to-door service
- Specialized transport
- Real-time visibility from ocean to door
Transloading and Warehouse Solutions
Even in a down market, it’s never a good idea to outsource your warehousing to a third-party vendor, as there may be problems in communication between your company, the driver, and the transloading facility you utilize. Shippers are taking advantage of the current market by streamlining their warehousing and improving operational performance. By partnering with PortCity, shippers gain the peace of mind that they are working with the preferred carrier for thousands of customers who ship to the U.S. east coast. PortCity offers a variety of value-added services, including:
- Cross-docking
- Transloading services
- Crating services
- Pick and pack servicing
- Palletizing and wrap services
- WMS Digital Inventory Management
- Vendor Management
- EDI & Barcoding Equipment
- DOT/IMDG Hazmat certification
Dedicated Transport Solutions
Another key advantage of working with a single source logistics provider is that their dedicated team of logistics experts can cover the unique transportation requirements of their customers. With a range of service options, PortCity offers guaranteed capacity to cover all local and regional hauls out of the major East Coast ports. It combines that with a national network of carefully vetted carriers to cover all middle-mile, U.S. domestic, and cross-border freight services.
- Full Truck Load (FTL) capabilities
- Less Than Truckload (LTL) and partial service
- Flatbed, dry van, reefer, hazmat, hot shot, and expedited freight
- Specialized transport for over-dimensional loads
- Company-owned trucks, chassis, and equipment
How are Shippers Reacting to Current U.S. Truck Market Conditions?
Falling truck rates, stagnant volumes of customer orders, and excess inventory in warehouses have created what the truck industry calls a shippers market. With a gluttony of available capacity options, carriers are forced into tighter competition. This has helped shippers find ways to maximize efficiencies within their supply chain and find ways to cut costs.
By partnering with a single source logistics provider, shippers can concentrate less on managing their daily operational requirements and reallocate labor into advancing their current business portfolio and going after new customers. PortCity provides customers with streamlined communication; company drivers report to PortCity dispatchers who ensure that container pickups are coordinated to avoid detention costs; company drivers then haul your load to a PortCity-owned warehouse for the load to be stored or transloaded; and PortCity’ network of vetted carriers can then haul shipments anywhere across the United States, Canada, or Mexico. With guaranteed capacity, PortCity helps connect North American suppliers with local, regional, and translational customers.
PortCity Helps Optimize Supply Chains
Since 2001, PortCity has offered shippers elite transportation and dependability regardless of the economic conditions affecting the freight market. Through recessions, the global pandemic, and seasonal volatility, PortCity provides customers the stability they need to handle their unique operational requirements. Through their range of value-added services, cutting-edge technology, and dedicated team of logistics veterans, PortCity is dedicated to providing flexibility and stability to help optimize global supply chains. Contact an expert at PortCity today!