Dive Brief:
- Bulk carrier capacity is very tight in Gulf Coast areas including Texas and Louisiana as well as central Mexico, a Q3 Uber Freight market update report noted.
- Trucking firms are also being selective with their freight, and average bulk lead time has dramatically risen from 24-72 hours to seven-10 days, the report added.
- “Capacity will stay disciplined through 2026 as carriers prioritize profitability,” the report said.
Dive Insight:
A squeeze on the driver supply in key markets is linked to the higher lead times, Groendyke Transport President Joe Morrissey told Trucking Dive.
Federal regulatory scrutiny over CDL schools, English language proficiency and non-domiciled CDLs have created ripple effects throughout the trucking industry, Morrisey said. Tougher enforcement for these federal regulations have tightened the driver supply, including bulk carriers, he said.
Additionally, bulk carriers in places such as the Ohio River Valley in the Midwest have consolidated, which could create market tension for years, Uber previously suggested in its Q2 report. Acquisitions have included deals such as Kenan Advantage Group buying Ohio-based M.C. Tank Transport and Trimac acquiring Texas-based Service Transport Company.
While many bulk carriers may insist on hiring drivers with tanker experience, Groendyke feels its own training program is second to none, and it’s willing to create the next generation of capacity, Morrissey said.
“We don't take any source of capacity for granted,” he said. “We know that we need to cultivate and develop and optimize all of our sources: traditional driving, truck driving school and military, and so that's how we hope to continue to fill our order.”
Since Jan. 1, the Enid, Oklahoma-headquartered bulk and hazardous materials carrier has seen its driver workforce increase by a double-digit percentage, far outpacing typical growth during the first three quarters of a year, Morrissey said.
