The Importance Of Relationships With Carriers & Capacity Challenges

 In Blog, Electronic log devices information North America, Freight Carriers in Canada, Trucking Company Regulations in Canada

At J&R Hall Transport, we believe that having a great relationship with your transportation carrier is essential for getting your goods where they need to go. But with changes to the transportation industry, many people feel they are losing that.

New Legislation & Increased Rates

With new changes to transportation regulations, both in Canada and the United States, the transportation industry has seen some dramatic changes in recent months. New Electronic Log Device (ELD) mandates in the United States has led to decreased capacity for transportation.

With these changes come increased rates across the board. The reasons for the increase are due to positive signs in the North American economy, which has been growing in recent years — and with the strengthening economy comes increased demand for transportation and shipping.

Freight Capacity & Volume

While the strengthening economy has increased the demand for transportation, the industry capacity has tightened. When freight capacity stays the same, but the volume and demand rises, this inevitably leads to rate increases. The ELD mandates have also contributed to a tight capacity, as some transportation businesses are unable to adhere to the new laws.

Customer & Carrier Partnerships

At J&R Hall, we work very closely with our customers and have strong, years-long partnerships and understandings with our customers. Rates in the trucking industry have increased dramatically in some cases, while J&R Hall has tried to implement minimal changes to cover wages and equipment increases.

For manufacturers, shopping for the lowest rates all of the time are left struggling to find a great carrier. Getting the cheapest rate will not foster a relationship, and many carriers now are not hauling for these shippers.

Just like our employees, our customers need to know about changes to our industry. Relationships are more important than ever in today’s environment, and our customers understand our need for increases and support us.

Driver shortages, ELD laws and a favourable economy is a new world. Some truckers are trying to take advantage, while others, like J&R Hall, are trying to maintain moderate rate increases, retain our valuable staff, and attract new employees for growth.

If you have any questions about these changes, don’t hesitate to reach out to our team.

 

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