Changes in Truck Capacity Becoming More Prominent in 2016
Trucking companies are used to dealing with fluctuating rates, differences in demand, and a number of other uncertain factors in their line of work. And while it’s impossible to predict with 100% accuracy just how things will turn out by the end of the year, signs point to a similar trend among the most successful trucking companies – smaller trucks are being phased out in favor of larger ones.
Given that demand has dipped and expenses have risen in the first quarter of 2016, trucking companies are looking for ways to remain successful in these tough economic times. While some companies work to expand their brand and pursue new types of operations, others focus on cutting costs. One of the most popular ways to do this is to maximize the efficiency of each trip on the road. This means that in order to get more out of every route, trucking companies are opting for larger rigs over smaller ones.
This presents a large problem for smaller operators who rely predominantly on a fleet of small commercial vehicles. Given that it’s much harder for them to offer competitive rates when compared to their larger competitors, it may become apparent that only the well-established trucking giants can survive in this type of tumultuous economy.
Smaller operators have a chance to bounce back by utilizing decentralized platforms to match their drivers with those who need deliveries or transport services. But as for large clients who rely primarily on largescale carriers, those with larger trucks who can handle more business in a single trip are the only ones who can continue to enjoy steady growth in the current market.
Many companies are looking to maintain their current operations rather than expanding them. By keeping things steady, small-to-medium sized companies may be able to stave off losses month by month. This could lead to a recovery period toward the end of the year. Time will tell if these trends continue, but all signs point to bigger trucks and bigger companies maintaining a bigger share of the market throughout the next quarter.