What can we expect the market to look like this year? There will continue to be significant challenges before the market returns to "normal."

In categorizing these challenges, it breaks down into three main areas of concern: Driver Shortages, Infrastructure, and Equipment Shortages.

If we can quickly navigate the current outbreak of Covid-19, the government is forecasting a 3.5% growth to the GDP. This level of growth, along with capacity issues, leads to the belief that service levels will take time to improve and carrier rates will continue to rise.

Trucking rates will continue to rise as most carriers are faced with driver shortages.

The combination of an aging workforce, low unemployment, and the current regulation requiring a driver to be 21 prior to receiving their commercial driver's license have all contributed to the current shortage. Companies are exploring many ways to meet their need for drivers, but the current driver shortage is still a long way from being resolved.

The government has finally acknowledged the need to address the aging infrastructure. Aging roads and bridges, antiquated port and railroad material handling equipment, and the slow adoption of technology solutions have brought these issues to light. All these factors have been cited by drivers leaving the workforce. Many complain they spend as much time stationary. The USD 1.2 billion Infrastructure Act recently passed the U.S. Congress, but it will be years before the investment will improve the existing infrastructure. In the meantime, there will be additional delays as construction projects are started across the United States. We anticipate these projects will bring delays as trucks and rail containers need to be re-routed around construction zones.

There are also numerous equipment shortages across the supply chain. The equipment shortages range from chassis shortages at most major ports and railheads to slow production on Class 8 trucks. Supply chain constraints on chips, steel, and other imports have slowed production for most manufacturers of these trucks. This has led to a 67% increase in the price of new power units in 2021.

To navigate these shortages, we are advising our partners to keep an open mind, work on creative solutions supported by sound practices and focus on tracking their vendors' successes and failures to allow for an easy pivot to a new way of doing business.