According to a recent article from HDT Trucking Info, the U.S. trucking industry isn’t alone in the suffering brought about by the labor shortage. Brokerages and third party logistics companies are also impacted.
At an industry conference, the CEO of Transportation Intermediaries Association (TIA), Robert Voltmann, stated that the pain caused for the capacity crunch would continue to be felt by Third Party Logistics Companies (3PLs) and brokers, who are also struggling to find qualified employees. The 3PL industry in particular has been growing rapidly, now valued at $160 billion per year, and features a number of employment opportunities.
Some of the situations that are fueling the growth, include retailers who are putting distribution centers near their customer bases in order to offer same-day delivery. Also, the advent of the fracking industry is causing foreign firms to build manufacturing facilities in the U.S. in order to take advantage of relatively cheap energy and those facilities need trucks to move their products.
In addition to a driver shortage and employee shortages spurred by growth, 3PLs also face the issue of deteriorated infrastructure. Shipments are slowed by the poor condition and congestion of roadways, Voltmann explained. The regulatory environment, too, is causing some stress for companies within the logistics industry. Among increased regulations that Voltmann cited is hours of service and electronic logging device rules.
What it comes down to is this: it’s both a profitable yet demanding time to be a third party logistics company. For more information about third party logistics and the impact of new laws and labor shortages to the industry, contact us.