U.S. Trucking Capacity Update
The major factors which are impacting truck capacity are as follows:
- Driver shortage due to the recent Electronic Logging Device (ELD) mandate. Drivers are no longer able to exceed their hours of operation limit
- Infrastructure and congestion
- Holiday backlog
- Increasing cost of operations and labor
- Inclement weather conditions in the Central and Southeast regions, which caused terminal and road closures, and creating a backlog for affected port and rail terminals
- Limited free time at the U.S. inland rail ramps
- Chassis shortage on a nationwide basis (there are more coming out and less going back in).
All of these factors make on-time door deliveries increasingly difficult and also increase the risk of additional demurrage, detention, storage and/or dry run charges being incurred, the responsibility for which will lie with the party responsible for paying the freight charges to DHL. We also expect this shortage of truck power to lead to upward pressure on inland drayage rates.
While we are adjusting to the current market accordingly by expanding our trucker capacity and coverage, as well as looking at on hand equipment utilization opportunities/ optimization, we would also like to suggest the following recommendations to better manage the situation going forward:
- Ensure customs clearance is done at the port of discharge vs. railing in-bond
- Understand how the drivers hours and the ELD mandate could affect your shipment deliveries
- Ensure freight payment and the Original Bill of Lading are submitted as early as possible
- Divide the volume on multiple sailings and if on same vessel on different Bill of Ladings
- Offer flexible loading and unloading timeslots for drivers 24/7, if possible
- Provide quicker loading and unloading turn around
- Have freight staged ready for pick up or labor ready for unloading
Expect from your usual DHL contacts information related to general market conditions and timely updates regarding potential impact, and any additional costs incurred specific to your shipments. DHL is committed to protecting our customers and the business we have developed. For any potential options to route your future shipments differently, please engage with your local sales representative, as well as local DHL operational contacts who will be pleased to offer various solutions. We are committed to continue our relationship with you.
If you have any questions on the above subjects, please contact your DHL Global Forwarding representative or Contact Us