OLD DOMINION FREIGHT LINE's * USA: Drivers shortage
* California - ODFL warns truck capacity could buckle as soon as early 2017
--- Although as a less-than-truckload carrier Old Dominion Freight Line is somewhat less exposed to the driver shortage than truckload companies, the North Carolina-based trucker is paying close attention to the issue... The long-anticipated, much-discussed truck driver shortage could surface again as a major problem as early as 2017, so businesses and consumers should anticipate motor carriers will increase freight rates to cover the additional costs they will incur to attract and retain drivers, an industry executive said Tuesday... Chip Overbey, senior vice president of strategic development at Old Dominion Freight Line, told the Los Angeles Transportation Club that lackluster economic growth in the first half of 2016 was influenced by weak investment from businesses and manufacturers. However, this cycle may be nearing its end because historically these “industrial recessions” have lasted only two to three years... Rapid expansion in e-commerce fulfillment, coupled with a growing desire by shippers to reduce inventory carrying costs, have motor carriers focusing their resources in the less-than-truckload, next-day and same-day delivery sector. About 68 percent of Old Dominion’s business is in less-than-truckload second-day delivery, Overbey said... These developments are putting pressure on motor carriers to run tight, on-time delivery schedules... Although economic growth so far this year has been disappointing, Overbey anticipates a return to more normal growth next year. He described 2016 as the “quiet before the storm” ...
(Photo: An ODFL truck moving up) -- Los Angeles, CAL, USA - JOC, by Bill Mongelluzzo - Aug 24, 2016