2021 was a tough year for freight transportation. But, the global freight brokerage market is expected to grow $41.60 billion by the end of 2025.
These numbers foreshadow the prosperous future of the freight forward transportation industry. To get ahead, you’ll want to consider the challenges ahead and embrace the future obstacles.
This short guide will showcase three things you need to know before embarking on the world of freight transportation.
1. Selective On Future Contracts
First, understand what you’re making on average when you begin organizing freight transportation contracts. For instance, if you’re making on average $1,000 per load. It’s wise to not overwhelm your workflow by taking several $1,000 mid-line contracts that don’t add to your income.
Instead, utilize your central transport freight by delineating the higher payloads across fewer lines. You travel the same distances, but you will garner a better return overall on your freight transportation list.
In addition, you will learn how to negotiate a better rate. Your freight expenses will remain the same but your income will continue to grow.
2. Adding More Company Trucks
Adding more trucks sounds simple on paper, but it comes with a higher risk. Adding a truck can increase income but you need to have better maintenance.
Trucks breaking down can cause a dent in the company pocket. Before adding new trucks, you need to make sure you’re handling the maintenance process. In addition, you need reliable drivers.
The con is that your expenses skyrocket with the additional trucks added to your company line. Truck payments, insurance costs, and fuel costs will add to these expenses.
You’ll have to research central transport freight tracking and whether you’re going to outright purchase the truck or finance it.
If you profit from one truck and have the money to do so, consider expanding your truck selection. But you must understand, adding trucks adds expenses.
3. Driver Shortages & Freight Services
In addition to the added expenses of financing a truck, you’ll have to worry about hiring a driver. This is a potentially tedious process.
As of 2021, there is a mass shortage of drivers on the market. There are over 80,000 driver shortages in this country.
Freight transportation companies need to understand how to market to new drivers. You’ll have to offer wages and benefits that will entice upcoming workers to work in freight transportation services.
An effective company can sponsor drivers who have the skillset but need a CDL license.
Trucking companies can utilize CDL driving schools to help train workers who are eager to join freight transportation services. This includes over 100 hours of training and additional test courses.
The Future Of Freight Transportation
After the blow to business from COVID, Americans are expecting an upcoming economic recovery plan. There are more opportunities than before in freight transportation services.
The combination of a demand for products and additional government support will surge the freight transportation industry. But, freight companies need comparable recovery plans in the future to meet the growing economic boost.
People want to do business with freight companies that meet these expectations. Become the company that meets that demand!
For more information on freight transportation services, follow our industry news blog today!