Rising flatbed demands could impact freight decisions
Since August of last year flatbed demand in the United States has increased steadily. It’s critical that any business considering flatbed transportation as an option for its shipping needs understand the many contributing factors that impact supply and demand—not to mention cost—of flatbed freight. Regardless of your industry, knowing the forces at work when it comes to using flatbed services will help you make the right decisions for your business.
Flatbed demand has been steadily increasing: In April, DAT Solutions reported a load-to-truck ratio of 43.7 loads per truck for flatbeds—the highest in years. That’s due to a number of reasons across several industries:
- An increase in demand for natural gas both domestic and worldwide transported by flatbeds.
- New petrochemical projects. Since 2010 the American Chemistry Council has invested $185 billion in these new projects, which creates more freight that require flatbeds.
- The expansion of the clean energy market. There are 50,000 wind turbines in the U.S., each constructed from 8,000 parts—many of which are large and require flatbed transport.
- New home construction. According to the U.S. Census Bureau, between March of 2016 to March of 2017 the sales of new single-family homes increased 15%. Supplies for these ventures are primarily transported on flatbeds.
These and other factors will impact flatbed availability and cost. Understanding the market influence will help your business make informed decisions about flatbed transport. Finding partners who will collaborate on freight options based on current market demands can make it easier to reach your business goals.
Agforce Transport Services specializes in customized transportation solutions for our customers’ specific business needs and requirements. To learn more about how we can help simply your path to market, contact us today for a free consultation. Give us a call at 844-713-6723 or email us at firstname.lastname@example.org.
For additional information related to changes in the marketplace, status of the logistics industry and what’s ahead, check out these articles:
Food Logistics: Spot Truckload Rates, Demand Stay Hot into August
Food Logistics provides an overview of the freight surge summary that reports the end of July moving into early August. The article shares the four-week trend lines and national averages for van, flatbed, and refrigerated rates.
DAT: How Natural Gas and Plastics Impact the Truckload Spot Market
DAT provides insight on how new natural gas and petrochemical production investments have created a noticeable impact on the trucking spot market.