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Submission: On June 01 via api from US — Scanned from DE
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THE TRUCKING INDUSTRY IN JUNE 2023: WHAT YOU SHOULD KNOW
The four weeks of June — weeks 22-26 on your refrigerator calendar— are, year
after year, some of the trucking industry’s most strenuous.
From the first wave of summer’s produce season in Georgia to the transport of
farming equipment and construction machinery around the nation, not a single
trailer is left unused and many are overbooked.
June creates the perfect accumulation of demand that, without exception, tests
the trucking industry’s ability to keep up. Frost laws have ended, a lot of
produce is in season and it’s finally time to fix that pothole at the end of
your street.
Unlike any other time of year, June is firmly capped by national holidays on
both ends that send drivers home to their readily awaiting family and friends.
So, it’s safe to say, truck capacity will be tight again as we enter June this
year, as it was in years past.
Here at Anderson Trucking Service (ATS), we also feel the impact of June in this
industry as we typically see a 15 percent uptick in volume compared to May.
We’ve found that education, more often than not, equates to adaptation in this
industry. So, the more you know, the better prepared you’ll be to succeed.
In this article, we’ll tell you about the factors that’ll impact your ability to
find capacity in June including:
1. How dry van and reefer capacity is impacted in June
2. How open-deck capacities are impacted in June
3. How national events impact capacity in June
All three of these factors, when working in tandem, impact the pricing and
capacity available in the trucking industry.
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HOW ARE DRY VAN AND REEFER CAPACITIES IMPACTED IN JUNE?
When it comes to your ability to find dry van and reefer capacity during the 30
days in June, there are two main constraints that you’ll want to keep in mind:
1. Produce Harvest in the Southern United States
2. Household Goods Season Nationwide
Each of these events plays a role in tightening dry van and reefer capacities
across our nation in June.
1. PRODUCE HARVEST IN THE SOUTHERN UNITED STATES
June marks the initial wave of produce harvest, and distribution, throughout the
southern U.S. in many coastal states.
Including but not limited to:
Farmers along this section of our coastline need to move their products from the
fields and onto the shelves of grocery stores and produce markets across the
nation.
This influx of demand makes the month of June in states spanning the south to
south-eastern portions of our nation, an absolute hotbed for reefer and dry van
capacities.
The transportation of high-liability, perishable freight fetches a pretty penny
for the truckers fortunate enough to be located in these regions.
As such, finding a trucking solution out of these areas will cost more in June
as carriers are highly motivated to stick around these locations.
Truckers enjoy the payday they receive from moving the flowing droves of
time-sensitive commodities in this area.
And, steering them away from the depths of the sunshine state, and her neighbors
is always pricy in June.
On the flip side, if you’re a shipper looking to move reefer or dry van freight
into these areas, finding the capacity to do so will likely come easily.
Drivers love to maximize their time and if your freight will help them get to
the cornucopia of harvest-based demand in these regions, name your price, you’ll
find plenty of takers.
2. HOUSEHOLD GOODS SEASON NATIONWIDE
For an eight-week window of time beginning in June, the movement of household
goods across the United States ramps up substantially.
This time of year marks the end of the school year and the beginning of summer,
making it the perfect time for families who are looking for a change of scenery,
to find one.
And thus begins, household goods season.
As individuals, couples and families uproot their lives and move to a nearby
town, state or faraway place, the moving companies — tasked with helping them do
so — need to find dry van capacity.
These companies begin their work by reaching out to their carrier partners to
find the capacity they need to move their client’s furniture, appliances and
other household items.
June, more than any other time of year, is the month where this process is at
its peak, people are moving and . . . they’re taking a lot with them.
In turn, this uptick in dry van demand tightens transportation capacity around
the nation as people relocate during June. This makes it harder to find a truck
at the price points of other months.
HOW ARE OPEN-DECK CAPACITIES IMPACTED IN JUNE?
The hustle and bustle of America’s highways, prompted by good weather and the
promise of a long fruitful summer is thanks, in no small part, to the frequent
transportation of open-deck freight.
In the northern U.S., the snow has gone away, the trees are dense with their
newfound leaves and the children are gearing up for what promises to be a long,
hot summer.
This also means that the frost laws —dictating gross weight limits on the
fragile interstate highways in this region — no longer apply.
And what perfect timing. The fields are ready for plowing and that 4th-street
overpass can finally be reconstructed. Luckily, in June, the machinery needed to
churn up the earth and hoist construction materials can finally be moved.
As such, the large equipment that couldn’t be transported in previous months,
line the interstates of northern states in June.
You should expect larger freight like farm equipment, construction equipment and
other oversized machinery to soak up a large portion of open-deck capacities as
the seasons change in this region.
The southern U.S. also transitions into an open-deck hotbed in June. With a lot
of similarities to the northern states, the southern portion of our nation also
transports a large quantity of open-deck freight as we steadily approach the
solstice.
HOW DO NATIONAL EVENTS IMPACT CAPACITY IN JUNE?
June, unlike any other month of the calendar year, is both capped by national
holidays and features the end of a quarter. Each of these events impacts
capacity in separate, but equally disruptive, ways.
HOW DO NATIONAL HOLIDAYS IMPACT CAPACITY?
From Memorial Day on the final Monday of May — impacting the ability to find
capacity over that weekend — to the fourth of July the following month, national
holidays should be noted and planned for in this industry.
Just like you and I, truck drivers also like to spend holiday breaks at home
with their family and friends. As such, the demand for their services especially
following Memorial Day — will spill into June.
This increased demand for capacity — in anticipation of the congestion of the
4th of July and avoidance of Memorial Day — will increase prices as demand
shifts into the weeks of June.
As such, you’ll want to make sure that you plan for these national holidays, and
wherever possible, schedule your shipments around these periods.
HOW DOES THE END OF QUARTER TWO IMPACT CAPACITY?
As we edge toward the end of the second quarter, halfway through the calendar
year, businesses across the U.S. will be distributing their inventories and
fulfilling their supply chain commitments. This is done in anticipation of
quarterly reporting and analysis as these businesses strategize for the upcoming
quarter.
These companies will increase their demand for capacity as they move commodities
in anticipation of quarter end, tightening the market even further.
HOW SHOULD YOU PREPARE FOR JUNE IN THE TRUCKING INDUSTRY?
Even though June is an incredibly busy time in the trucking industry, your
budget is still important and we’re here to help you through it.
The most important thing that you can do to maximize your budget this June is to
provide your transportation partner an adequate amount of lead time.
Although it varies by equipment type, region and commodity, a good time frame
for notice falls between 48 and 72 hours before the time your shipment needs to
load.
Given this amount of lead time, a great transportation partner will be able to
secure your truck at a reasonable price and get it to your facility when and
where you need it.
Another great way to make sure that you make the most of your budget this June
is to ask your provider questions about each of the factors we’ve outlined
above.
Ask questions like:
* How will the produce harvest in the south-southeast impact my shipment?
* How should I plan for my shipment over the 4th of July?
* Will the movement of household goods nationwide impact my freight?
* How can I maximize my budget this June?
* Can I add flexibility to my pick-up and delivery timeline?
Asking questions like these will help you to find the correct provider and, in
turn, make the most of your shipping dollars this June.
Finally, The Freight Carrier Selection Checklist is another great tool to use
this month. Make sure the carriers you utilize are the best ones for the job,
without exception, by downloading this free tool.
If you would like to find out more about how ATS can help you get your freight
moved efficiently and cost-effectively this June, let’s talk about it!
Tags: Insider, Seasonality, Monthly Updates
WRITTEN BY ERIC METSO
Eric has been a sales manager with ATS Logistics since 2018 — when he helped
create a new sales team from scratch. In his role, he supports his team as they
develop their book of business and create new partnerships. Eric joined ATS in
2013 as a sales representative for ATS Logistics. He was also a sales member
with ATS’ Vans division before coming back to ATS Logistics in his current role.
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