We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Inflation, labor challenges top LTL business leaders’ concerns

Inflation, labor challenges top LTL business leaders’ concerns

Post-pandemic pressures continue, but the drivers of freight demand remain strong with little fears of an impending recession, executives gathered for a transportation industry conference said.

IMG_0192.jpg
June 30, 2022
Victoria Kickham
No Comments
Freight demand is expected to remain strong despite decelerating growth from recent historic highs, according to economists and transportation industry leaders who gathered in San Diego this week for the SMC3 Connections conference. Nearly 500 people attended the event, which draws executives from across the less-than-truckload (LTL) industry, including shippers, carriers, third-party logistics services providers (3PLs), and technology companies.

Most drivers of freight demand remain strong, including construction activity, corporate investing, manufacturing, and consumer spending, according to economist Chris Kuehl, managing director of Armada Corporate Intelligence, who delivered a global economic update to attendees on Monday. But there are headwinds, including inflationary pressures that are beginning to affect consumer spending in some sectors and high fuel prices that show no signs of easing. Despite recent fears and headlines, an impending recession is unlikely, according to Kuehl and others, although the general consensus is that freight markets and the broader supply chain are likely to experience a deceleration from the record growth they’ve seen since mid- to late 2020.

“The macroeconomic outlook is generally good, and [the probability] of a recession remains low for now,” Kuehl said during his presentation.

A panel of LTL carriers agreed that there will be some cooling ahead across the industry, due largely to inflation, rising interest rates, and overall slower economic growth. But they said e-commerce demands will continue to fuel the need for smaller, faster-moving shipments. Those conditions will continue to drive up demand for labor across the LTL industry, which includes truck drivers but also cuts across the broader logistics workforce, they said. Industry estimates peg the nationwide truck driver shortage at 80,000, but executives in attendance at SMC3 said labor challenges exist in the warehouse, the back office, and corporate environments as well. As a result, more companies are investing in efforts to attract and keep good talent, according to panelist Rob Estes, president and CEO of LTL carrier Estes Express.

“Having good people is critical,” Estes said, adding that rising demand for service throughout 2021 pushed many in the industry to play “catch up” with their labor investments, as well as in technology and other areas.

Tech investments are focused on areas such as network efficiency, freight accuracy, and pricing, according to the panel.
Logistics Logistics Services Trucking
KEYWORDS Estes Express Lines LTL SMC3
  • Related Articles

    Delays, inflation are top concerns this holiday season

    Procurement pros say inflation is top concern

    Overcoming warehouse labor challenges

Victoria Kickham, an editor at large for Supply Chain Quarterly, started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for Supply Chain Quarterly's sister publication, DC Velocity.

Recent Articles by Victoria Kickham

Logistics industry growth continued in February

Economy, technology take center stage at JumpStart

Q1 Outlook: Carriers will continue to compete for limited demand

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

  • Inflation drops again as interest rate hikes hit home, NRF says

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing