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New Trailer Production Slows Lane Opportunity Growth

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As carriers and 3PLs continue to climb out of an environment laid out by the pandemic, situations arise which propose a return to normalcy will not be as hurried as hoped. As carrier demand for new inventory remains high, the ability of said inventory to enter the market has been constrained by labor availability and supply shortages. This backlog has created a ripple effect in the industry.

At Rockfarm, one of our core carriers, JF Young Trucking LLC, has experienced this ripple first-hand. As an asset-based provider, JF Young has an eye on lane growth through drop-lot opportunities in the Midwest. During the 1st & 2nd quarters, this growth was effectively stalled. Per JF Young, “Dry-van orders in December 2020 were given a delayed build-date of the 1st week of June 2021. We are still waiting for the delivery of those original orders. Any additional orders have been shut off by manufacturers.”

When new equipment stalls in the market it impedes carriers from replenishing their inventory relative to customer demand. Many become less inclined to part with older inventory given the market uncertainty. Per JF Young, “Our auction prices for used 53’ dry-van options have increased 80% between July 2019 & July 2021. We are not only waiting on new inventory but used as well.”

As we progress into 2021, we are facing standard pandemic-related challenges which impact our ability to expand our customer lane opportunities. However, not all is doom-in-gloom as customer demand for capacity continues to increase throughout 2021. While the slow production of trailer orders looks to persist into 2022, at Rockfarm we have kept an eye on varied solutions to best utilize our core carriers’ assets. As we navigate the post-pandemic world, we must continue the capacity dialogue with our customers and core carriers to remain adaptable to the market.

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, New Trailer Production Slows Lane Opportunity Growth

By Alana Reinhardt

Sales and Marketing Coordinator

Alana Reinhardt has been the Sales and Marketing Coordinator at Rockfarm Supply Chain Solutions since 2020. She brings her education from Eastern Illinois University and her passion for communication to her work as a content creator and inbound lead generator. When she’s not behind the keyboard, she can be found exploring the St. Louis area with her dog, Ernie, at her side.

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Source

Freight Waves – Calm before the storm: Muted June trailer orders conceal coming boom – FreightWaves

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