Dear Entec Customer, As you are no doubt aware, the
Dear Entec Customer, As you are no doubt aware, the US economy is very healthy and business activity is at all-time highs in many cases. This has had a very positive effect on almost everyone’s business but has placed increasing pressure on the nation’s logistics assets, most notably, both long haul and less than truckload shippers. The combination of a driver shortage, newly implemented electronic log books, and recent NAFTA tariff negotiations have greatly decreased the number of driver hours available to move freight. As a result, both freight and warehousing charges have increased substantially, and are expected to continue to increase as our economy grows. In order to continue to provide the best in class service we strive to deliver, we are implementing a freight surcharge of $100 to all orders where Entec arranges and pays the freight, effective August 15, 2018. This surcharge is in addition to any specific up charges communicated by material suppliers. We are monitoring a variety of published freight indexes to track the changes in rates, and we can share that data with you individually. We will gladly work with your team to help you manage the message to your organization and to your customers if you so choose. This is an industry wide issue that will not likely improve in the foreseeable future, and we are available to work with you to find creative ways to manage overall logistics and inventory costs. As always, we thank you for trusting us to support your business and we look forward to continuing to grow together. Best Regards, Steve Tomaszewski Entec Polymers Senior Vice President & General Manager
1 9 0 0 S u m m i t To w e r B l v d . , S u i t e 9 0 0
|
Orlando, FL 32810
|
407.875.9595
|
EntecPolymers.com
TRUCKING INDUSTRY FACT SHEET
The U.S. GDP is expected to grow by 2.2% in 2018, when compared to 2017.¹ 70.9% of goods in the United States are transported by trucks.² Despite the strong demand for trucks, the yearly supply of drivers has decreased. Mainly due to trucking companies unable to find qualified drivers.³ The Load to Driver Ratio in January of 2018 was 8 loads to 1 driver. Which is up from January of 2017 was 3 loads to 1 driver. In 2016 the ratio was 1 to 1.⁴ In 2016 the shortage was 36,500 drivers. In 2017 the shortage was estimated to more than 50,000. With the lack of new drivers entering the workforce that number could be as high as 174,000 by 2024.³ The average age of a truck driver is 49. When similar sectors are 42.⁵ Over the next decade, the trucking industry will need to hire a total of 890,000 new drivers. Replacing retiring drivers account for 45% of that volume, with the growing demand as the second factor.³ The Electronic Log Device (ELD) Mandate has put further pressures on freight costs. As the strict en forcement has limited the amount of time drivers are able to drive, hence limiting the distance they can cover in day. In some cases as much as 10%.⁶ Diesel fuel prices are up 26.8% from May 2017 to 2018. To entice drivers trucking companies are paying record high salaries, bonuses, and other incentives to recruit and retain drivers. ¹ http://fortune.com/2018/05/30/us-gdp-economy-growth-rate/ ² http://www.trucking.org/News_and_Information_Reports_Industry_Data.aspx ³ http://www.trucking.org/News_and_Information_Reports_Driver_Shortage.aspx ⁴ Morgan Stanley Freight Index ⁵ http://time.com/money/4070028/american-truck-driver-shortage/ ⁶ https://www.supplychaindive.com/news/truck-capacity-shortage-drivers-labor-market/515515/
Latest Morgan Stanley Index (Dry Van)
1 9 0 0 S u m m i t To w e r B l v d . , S u i t e 9 0 0
|
Orlando, FL 32810
|
407.875.9595
|
EntecPolymers.com
1 9 0 0 S u m m i t To w e r B l v d . , S u i t e 9 0 0
|
Orlando, FL 32810
|
407.875.9595
|
EntecPolymers.com
TRUCKING INDUSTRY FACT SHEET
The U.S. GDP is expected to grow by 2.2% in 2018, when compared to 2017.¹ 70.9% of goods in the United States are transported by trucks.² Despite the strong demand for trucks, the yearly supply of drivers has decreased. Mainly due to trucking companies unable to find qualified drivers.³ The Load to Driver Ratio in January of 2018 was 8 loads to 1 driver. Which is up from January of 2017 was 3 loads to 1 driver. In 2016 the ratio was 1 to 1.⁴ In 2016 the shortage was 36,500 drivers. In 2017 the shortage was estimated to more than 50,000. With the lack of new drivers entering the workforce that number could be as high as 174,000 by 2024.³ The average age of a truck driver is 49. When similar sectors are 42.⁵ Over the next decade, the trucking industry will need to hire a total of 890,000 new drivers. Replacing retiring drivers account for 45% of that volume, with the growing demand as the second factor.³ The Electronic Log Device (ELD) Mandate has put further pressures on freight costs. As the strict en forcement has limited the amount of time drivers are able to drive, hence limiting the distance they can cover in day. In some cases as much as 10%.⁶ Diesel fuel prices are up 26.8% from May 2017 to 2018. To entice drivers trucking companies are paying record high salaries, bonuses, and other incentives to recruit and retain drivers. ¹ http://fortune.com/2018/05/30/us-gdp-economy-growth-rate/ ² http://www.trucking.org/News_and_Information_Reports_Industry_Data.aspx ³ http://www.trucking.org/News_and_Information_Reports_Driver_Shortage.aspx ⁴ Morgan Stanley Freight Index ⁵ http://time.com/money/4070028/american-truck-driver-shortage/ ⁶ https://www.supplychaindive.com/news/truck-capacity-shortage-drivers-labor-market/515515/
Latest Morgan Stanley Index (Dry Van)
1 9 0 0 S u m m i t To w e r B l v d . , S u i t e 9 0 0
|
Orlando, FL 32810
|
407.875.9595
|
EntecPolymers.com
