Flatbed trucking is an important component of overall freight management and the North American supply chain. These transit vehicles are essential for hauling materials, including those related to construction, housing, and gardening. In the last couple of years, demand for flatbed trucking has been substantial, as demand for these supplies has escalated. But like other freight sectors, the flatbed freight industry could face a leveling-off period in the months to come. Notably, demand for the specific types of goods carried by flatbed trailers affects these predictions. But at the same time, so do several other variables. The following offers Fratogo’s take on what to expect for the flatbed freight industry for 2023.
Demand Forecasts Look Favorable
For the past two years, load-to-truck ratios have been high for the flatbed freight industry. Increases in construction, manufacturing, and retail sales all drove higher demand, while truck volumes remained steady. In the latter half of 2022, this ratio fell to a degree, but it certainly didn’t return to pre-pandemic norms. In fact, growth of the flatbed freight industry is expected to continue above 5% over the next five years. In examining construction, housing builds, heavy equipment needs, and manufacturing, each of these areas continues to show prosperity. Therefore, it’s expected that demand for flatbed trucking will persist well into the summer, if not longer. In addition, flatbed trucking rates will likely remain about the same during this time, which is great news for freight carriers. At least for the coming months, it does not appear that inflationary impacts will be substantial.
Rising Costs Could Affect Profitability
Understanding that rates for flatbed trucking should hold steady, it will be important for carriers to control expenses. However, there are some unwanted trends that may make this challenging. For one, fuel prices in North America remain elevated, which notably adds costs to operations. In addition, driver shortages and a reduced talent pool remain, and these are forcing freight carriers to pay higher wages. One option might be to operate with fewer trucks and drivers, but this risks a loss of market share and economies of scale. As a result, it’s likely that companies in the flatbed freight industry will need to find other ways to cut expenses. This means tightening operations and improving efficiencies will become essential in the coming months in an effort to remain competitive.
Investing in Technologies Will Be Essential
One way flatbed trucking companies might reduce expenses involves technology investments. In an effort to offset fuel costs long-term, investing in newer flatbed truck designs might be considered. In addition to purchasing more aerodynamic options, those operating on alternative fuels and electricity might be considered. This will actually add to short-term costs for the company but has the potential for major savings later. Likewise, these changes promote greater long-term sustainability for the industry as a whole. In terms of other technologies, it’s now essential for companies in the flatbed freight industry to embrace the latest developments. This includes technologies like real-time tracking, predictive maintenance, and telematics. If purchasing and operation costs are a concern, partnering with an advanced 3PL partner like Fratogo should be considered. Regardless, it will be important to acquire these capabilities in an effort to stay competitive within the flatbed trucking sector.
Avoiding Setbacks and Pitfalls
Naturally, it’s always important to avoid any potential missteps when looking ahead to success. For the flatbed freight industry, this means understanding safety regulations and ensuring compliance. Several regulations exist for flatbed trucking companies, including hours-of-service regulations for drivers and electronic-logging-device mandates. Load securement regulations also exist to promote road safety and reduce potential work hazards. Auditing current policies and procedures and monitoring adherence remain important in efforts to avoid fines and penalties. By paying attention to this and the aforementioned factors, flatbed freight industry carriers can enjoy a prosperous year ahead. And as always, Fratogo is more than happy to assist with any logistics needs that may arise.