Bulk Road Freight Services

Bulk Road Freight Services Global Market Outlook

• The global bulk road freight market is forecasted to grow at a CAGR of 5 to 6 percent in FY 2022 this is a comparatively lesser growth rate when compared to pre COVID scenario. The growth rate for FY 2023 will be more than 7 to 8 percent when compared to FY 2022. Bulk Freight demand has picked up in all major countries in Q2 2022 due to the opening of industrial and trade activities.

• The demand is expected to increase steadily in the coming months, due to increase in demand from the core and mining industry on the account of improving trade and economic activities.

North America (USA) Bulk Road Freight - Drivers and Constraints

Drivers

Growing Industry:

• All major bulk commodity industry such as Oil, Mining, Agro are expect to clock positive growth in the coming years. All sectors are going to increase its volume output due to improving technology infrastructure. This growth potential will increase the demand for bulk trucking industry in North America.

Technology Solutions:

• Bulk trucking companies have started using technological solutions including artificial intelligence to reduce driver ideal time and empty return loads and become more efficient in the transportation activities.

Fall in Rail Freight:

• The bulk freight industry has seen steady growth via rail for many years, and the growth in this sector is predicted to continue in the short term due to its safety, efficiency to transport high volumes.

• On the flip side, rail transportation is predicted to fall in the long term due to expensive constructing and maintenance of rail lines. This draw back in the rail freight will contribute in load transfer from rail to road sector in the coming years

Constraints

Fuel Rate:

• Fuel prices account for nearly 20–25 percent of trucking freight rates, and in the coming years the diesel rate is forecasted to increase due to the global demand in diesel consumption. This will have an reasonable impact on the overall bulk transportation pricing in North America.

Shortage of Drivers:

• Driver wages account for nearly 30-40 percent of suppliers’ operating costs. Driver wages are expected to increase in the coming yeas due to the existing shortage in the industry.

• The US Midwest has been badly affected by driver shortage but the problem appears to be worsening all along the East Coast. Down south, Texas and Louisiana also face similar issues.

Bulk Trucking Sourcing Best Practices North America

Contract Lane Volume

• Share the volume data with your regular supplier, If they knows the volume plan every day, and is going to transport regular flow of cargo in the same lane, supplier can plan the backhauls and develop  the network

• As a result, you’ll will be billed less because the carrier will be more efficient

Planned Loading for Better Pricing

• When bulk suppliers develop pricing, they typically assume a 2-hour load window. But if the carrier knows they’re picking up at a place where cargo will get loaded in an hour, this sudden requirement will affects the price.

• Shippers who can provide consistent load time can get better freight rates and avoid additional assessorial charges

Increase Delivery Lead Times

• Organization can any time introduce planning into the supply chain, and can inform the carrier about future loads, buy doing this organization can they are able to maximize assets, including trucks, drivers and warehousing space. An advance shipping plan allows a bulk trucker to line up the assets and resources.

• The biggest cost for bulk haulers is paying for a tankers/trailer idle cost. Having proper communication with the suppliers will reduce those transportation costs and better freight rates with the shippers