The FTR Experts were posed with the question, "Will the carrier preorder/overbuy of trucks and trailers outpace the demand for drivers in 2021 and hurt capacity??"
This Q&A response from the FTR experts came from the January 2021 State of Freight webinar, Preparing for 2021.
- This seems to be occuring now, and we forecast strong utilization into 2022.
- If there are not enough drivers, carriers will accelerate replacement, driving some freight to the spot market.
FTR Expert Response: As of now, that appears to be what is happening. However, if capacity utilization remains as strong as we are forecasting well into 2022, this will not necessarily be a problem. If fleets cannot fill all the seats intended for expansion, we believe they will just accelerate replacement. We would anticipate small carriers to purchase the excess if the spot market remains strong.
If you need to manage your transportation spend, or set budgets for rates, only FTR provides history and forecast for truckload rates for spot and contract, coupled with a freight demand outlook that helps you plan for capacity, letting you decide when it makes sense to go short on the spot market, or lock in contracts to secure capacity.