High Trucking Rates in 2021: What’s The Reason?

trucking rates

High Trucking Rates in 2021: What’s The Reason?

The average van freight rates for 2021 September in the United States were $2.87 per mile, a half USD increase from the same period’s average, reports DAT Freight & Analytics. In addition, reefer truckload freight rates in 2021 September made up approximately $3.27 per mile, again an increase of $.04 from the September average. And, since the lift of lockdown measures, trucking jobs have become more high-paid than ever. Excitingly, among the best trucking companies to work for today is AJR Trucking considering its vision and mission. So read on to discover the reasons behind high trucking rates in 2021 and what opportunities open up for truck drivers.

Generally speaking, the current shortage of truck drivers coupled with a very limited number of new trucks being manufactured has caused the average freight truck rate to go up. And things aren’t favorable for retailers as the current rates are predicted to remain high, according to The Wall Street Journal. While freight demand in the United States increased 3.4%, costs for trucking went up about twice the figure with 6.5%, reports the news outlet giving credits to Cass Information Systems sources. In fact, rising freight costs are no news as starting from 2020; the truck market has been coming up with more and more solutions to deal with the situation. So to make trucking jobs more attractive to potential applicants, many trucking companies, including AJR Trucking, have started offering very high wages. Also, with a shortage of semiconductor pieces of equipment, many US retailers have found themselves in an unfavorable situation as truckload freight rates keep increasing. With more high-level chips needed in the consumer technology sector because of Covid-19, early in 2020, a shortage of semiconductor devices became common. But later on, the auto industry’s new technological solutions further complicated the supply of semiconductor equipment.

In June and July, truck freight rates appeared to remain constant across the United States. However, later in 2021, markets such as Southern California and the Southeast, where produce seasons affect prices, have displayed price volatility. Whereas the average outbound rate for JOC US went up by $0.02, the figure for Southeast recorded an increase between $0.13 and $3.43 on average. It goes without saying that the increasing rates are connected with a greater demand for fresh produce from South American countries and the import of goods from Asia. For example, rates for Los Angeles, where ports are used to import products from Asian countries, went up from $0.10 to $3.55 per mile in June. Besides, it has become common among stakeholders in the trucking industry that the current freight rates are at their peak. But according to some transportation experts, rates for contract truckload are expected to go up till the end of 2021 and then remain stable. In addition, considering that contract truckload rates typically follow the spot truckload figures, one can predict that the peak rate is yet to come. Also, please note that for contract one the lag period may last from 3 to 6 months.

It’s not just the shortage of drivers and trucking equipment that have contributed to truckload rates increase. Interestingly, a fewer quantity of available pallets. “Events keep upending the market, whether it’s a ship stuck in the Suez Canal or higher lumber prices leading to pallet shortages,” adds Dean Croke, who is an analyst at DAT. Further discussing the retail peak for 2021, Croke highlights that many truck market stakeholders are likely to hurry up collecting products at their warehouses in preparation for another increase in truckload freight rate. However, when it comes to the American trucking company, drivers are always well off as they are likely to enjoy high salaries for many years to come.

While at AJR Trucking, the truck driver salary is high; there are various things other than the financial side that attract people to our company. AJR not only boasts world-class project management but also hires professionals that are eager to learn and develop throughout their time here. One reason why the employee selection process is so essential for us is that we aspire to provide our customers with services that go beyond their expectations. While setting various requirements for our employees to comply with, AJR Trucking puts tremendous importance on employee appreciation. The unique talents and abilities of our employees never go unnoticed, and we do our utmost to ensure that our employees have a conducive environment to achieve personal growth while helping AJR develop and remain among the best trucking companies. Here’s what one of our employees, Arturo M., has to share about his experience working for AJR Trucking: “Great company to work for new 2020 trucks, the best part is they have set routes. They are contracted with the US Post Office, a steady job throughout the whole year.” Plus, it’s essential to note that AJR Trucking makes sure that each employee engaged in logistical operations has a truck driver’s license.

In addition, AJR Trucking is committed to minimizing its environmental footprint by keeping track of its contribution to sustainability projects. In fact, consuming renewable natural gas (RNG), AJR Trucking is arguably the best trucking company currently operating. It goes without saying that its business operations are equal to planting a total of about 150,000 trees along with eliminating over 2,000 metric tons of GHG emissions to promote sustainability.

As a USPS Contract Carrier, AJR Trucking operates in the private sector of the transportation industry. Through its impressive project management capacity, AJR succeeded in remaining partners with USPS for over 30 years. What’s more? The carrier invests heavily in cutting-edge technologies, ensuring that its staff uses the very best of available resources. Its fleet of over 60 clean trucks makes it a leading alternative fuel supplier to USPS. Therefore, one might state that AJR’s contribution to environmental sustainability goes beyond regional influence as it is today considered a valuable alternative to traditional carbon-driven carriers.

So through professionalism and personality, AJR Trucking boasts an excellent environment for professional growth. And, excitingly, the carrier is hiring new drivers who can contact us to learn more about our services and work conditions!

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