Scarcity of Transport Capacity: What It Means for Logistics and How to Prepare

Scarcity of Transport Capacity: What It Means for Logistics and How Companies Can Prepare

In recent times, logistics and supply chain management have faced unprecedented challenges. The COVID-19 pandemic forced everyone to adapt, prompting companies to rethink and transform their operations. The transportation and supply chain industries have been particularly exposed to vulnerabilities, and governments worldwide have introduced new regulations, many of which are here to stay even as the pandemic subsides.

In the European transportation market, Easy4Pro’s experience shows that there is indeed a scarcity of capacity. A structural part of carrier availability has diminished, and it may take months for the situation to stabilize, potentially lasting until the end of the year.

For instance, Easy4Pro's data shows that, typically, an average customer receives around nine offers per shipment. However, demand fluctuations during April created overcapacity, leading transport companies to reduce vehicle availability. As demand returned, vehicle availability remained lower, resulting in fewer offers from carriers and thus, a scarcity of capacity.

Market Data: Monthly trends in the number of active carriers, bids per shipment, and carriers per shipment from January to September.

The scarcity of capacity is mainly impacted by two factors:

1. The Pandemic: While the industry is recovering, many small carriers have been strongly impacted, reducing market transport capacity.

   
   

2. New EU Legislation: The “mobility package” limits “cabotage” and introduces new competition and work/rest time rules. Additionally, countries like France have enacted their own cabotage laws, and other EU countries may follow.

Easy4Pro's Solutions for Transport Management System Users:

1. Empower Your Carrier Panel: Expand your panel in the coming weeks. TMS makes it easy to manage multiple carriers without extra effort. Easy4Pro partners can access our network of trusted European carriers.
   

2. Monitor Low-Response Carriers: Identify carriers with low response rates. Implement reward/punishment systems to maintain a strong response ratio. Easy4Pro’s BI can distinguish reliable carriers from those that cherry-pick shipments, ensuring efficient performance on your private marketplace.
   

3. Extend Decision Time: Allow more time for carriers to submit offers, which can increase the number of bids received.
   

4. Implement Extreme Solutions if Needed: If your TMS allows, consider extending bidding times or enabling bidding after the decision deadline in exceptional cases to increase solutions.

These strategies can help your company navigate the current scarcity of capacity and build resilience for the future. For more information and personalized advice, contact us at info@easy4pro.com. If you'd like to join our community as a partner or carrier, visit www.easy4pro.com.

Easy4Pro - The private marketplace for efficient on-demand transportation.