Rising Freight Demand Poses Significant Challenges for Companies

According to a recent report from Tech.co, about 85% of logistics companies are currently operating at near full capacity. this surge in demand is largely driven by turbulent economic conditions and ongoing supply chain issues.

A survey involving 521 professionals from the U.S. freight and logistics sector revealed that 63% have experienced increased demand over the past year,with nearly a quarter noting a “significant” rise.Economic factors were cited by over 60% as the main cause,while almost half pointed to supply chain disruptions as a contributing factor.

“At first glance,this seems like positive news,” commented Jack Turner,an editor at tech.co. “Though, we’re in a precarious situation; this heightened demand could push some companies beyond their limits.”

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The report highlights that if businesses fail to meet rising demands, supply chains could face serious breakdowns. Just a minor disruption might significantly impact profitability. Currently,43% of freight companies identify on-time delivery as their most pressured area of operation; closely followed by driver availability (42%),cost management (39%),and meeting customer expectations (37%). The ongoing shortage of truck drivers remains an enduring challenge as recruitment efforts haven’t kept pace with demand.

Several reasons contribute to the slow recruitment rate for truckers: nearly 40% cite inadequate pay as an issue; around 38% express concerns about long working hours; and approximately one-third feel regulatory hurdles are too high for entry into the profession. To tackle these challenges head-on, about 73% of businesses have turned to technology for solutions—51% have implemented route optimization tools, while others are utilizing driver monitoring systems (46%) and telematics for fleet tracking (41%).