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Ahhh, August. The last full month of summer, kids heading back to school, the first fall breeze in the air, pumpkin spice in your cup. (Sorry, pumpkin spice lattes are about to be back at Starbucks and I can’t resist — don’t judge me.)
It’s also one of the last months of quarter three — just before we head into the “ber months” (September, October, November, December) and the holiday season. Though, we have been seeing Halloween decorations in stores since July.
During the holiday season, the movement of goods normally ramps up as new products arrive at California ports from China, Christmas trees are moved from the Pacific Northwest across the country and families start spending more money at the grocery store for the big food holidays (helllloooo stuffing and sweet potato pie!).
So, what can truck drivers expect in August and how can they succeed? The team here at Anderson Trucking Service (ATS) is constantly monitoring market trends and making informed decisions to help drivers succeed. When it comes to being successful in August, you don’t have to worry. We have tips to help you understand:
- What happened in July
- August freight rates
- August freight availability
- Supply and demand in August
- Tips for success in August
What Happened in the Trucking Industry in July?
It’s important to know what happened in the past to understand how we’ve gotten to the present market, so let’s do a brief recap of what happened last month.
Around the end of June and into July we saw an increase in freight activity — most likely due to the holidays Juneteenth and the Fourth of July. Inventory had to be replenished and the big food holidays brought increased demand on keeping grocery stores stocked.
After that, demand leveled out.
In late July, Yellow Corp., a large trucking company filed for bankruptcy and ceased operations. The company had been around for 99 years. As many as 30,000 people could be without jobs. The company had financial struggles for years before recently losing a significant number of customers.
Freight Rates in August
All signs say that we’re in the worst market we’ve been in since 2009. It doesn’t help that we’re in the usual summer lull. Contract rates are still dropping and we may still have a ways to go until we hit the bottom. Rates are still fairly low and drivers are being offered lower-rate freight.
We should see an uptick in freight rates in the fourth quarter, but it more than likely won’t happen in August. The fourth quarter is traditionally the best shipping quarter and keeps drivers busy with freight.
Freight Availability in August
As far as freight availability goes, volume isn’t decreasing, but it isn’t increasing exponentially either. This is due in part to the rate of inflation. It’s still high, so consumers still haven’t returned to previous buying patterns. They’re investing in services and experiences over goods that are hauled on trucks.
We’re seeing dropping inventory supplies, but ordering is increasing again. This indicates the market is probably at the bottom and should trend back up.
For now, and throughout all of August, there may not be an overabundance of load options because of this.
Supply and Demand in August
We’re currently seeing a large number of drivers with their own authority giving it up and seeking the shelter of trucking companies. The move from being owner-operators to becoming company drivers is not something we traditionally see. However, the price of freight has made them seek the security of trucking companies.
At the same time, carriers are capping their fleets instead of expanding them. There are a few reasons for this, but it’s primarily a symptom of the down market. When the market is down, carriers are hesitant to add trucks to the fleet. They may not have the money to invest in new trucks either — especially with their current inflated prices. Following the parts and truck shortages during the pandemic, we’re still seeing inflated prices for equipment and longer shipping times.
Because drivers are making the transition from owner-operators to company drivers, there’s an abundance of drivers looking for jobs right now. All the while, a lot of company drivers are jumping from company to company because they’re looking for more money.
When these drivers switch jobs so often, they end up disqualifying themselves from carriers because they have too many jobs on their record. A lot of newer drivers are moving around looking for higher paychecks; they don’t realize the market is impacting most (if not all) carriers.
Navigating the August Trucking Industry
There are several strategies you can implement to successfully navigate the industry in August and beyond. They include the following:
- Think twice before switching carriers
- Stay updated on current freight rates
- Pay attention to your delivery times
- Run more miles (if possible)
Turnover is high at a lot of trucking companies right now, but that doesn’t mean leaving your company is the best idea. Think twice before you leave your company. Ask a lot of questions and research the company thoroughly to ensure it’s the right move for you.
We’re seeing a ton of drivers industry-wide leave their companies within the first 90 days of employment because they aren’t making as much money as they desire. They want something the market can’t provide right now. This leads us to our next point…
Stay updated on current freight rates so you know what you can realistically earn. Learn what the market is and isn’t capable of right now. You may have been earning $4,000 a week during the pandemic, but you’d be hard-pressed to find a carrier that pays $3,000 per week now. Know when to hold onto a good thing.
Now is the time to be prompt. On-time service is more important than ever. Carriers can lose customers if freight is delivered late. Make sure you trip plan and give yourself plenty of time to arrive at your destination.
A lot of carriers are having their drivers run more miles right now. However, this can be difficult if freight availability is down at the carrier you drive for or rates are so low you can’t make a profit. Staying on the road longer (instead of taking excessive home time) can help.
Succeed as a Truck Driver
As summer comes to a close, make sure you’re following these tips to have a successful August.
Freight rates remain low, and demand has leveled off after holiday spikes. Freight availability is stable but not increasing significantly due to high inflation rates. Many drivers are shifting from owner-operators to company drivers for stability.
To succeed, drivers should consider staying with current carriers, stay updated on freight rates, prioritize on-time deliveries and consider running more miles for better earnings.
For more success tips, check out the Drive4ATS Learning Center.