Staying up to date with news and current events is the top platform activity amongst 28.8% of LinkedIn users. Trending Google searches as of June 2022 were recession, stock market and housing market. No matter if the intention of people is to stay informed or to stay protected, the lurking threat of a recession seems to be the headline. What sparks more concern is the “economic hurricane” that Jamie Dimon, CEO of JPMorgan Chase, termed. While we are unable to define economic hurricane, we can guide through the events of 2022, which might have caused such a thing. Through the good and the bad, here’s what has happened the last six months:

At the start of the year, truck capacity was tight as the Omicron variant and vaccine requirements flamed the Freedom Convoy protest around the US and Canada. The market volatility at that time caused a number of shippers to eliminate 12-month contract rates. Fuel prices in January were at $3.28 which, even at that time, was expensive. If you can remember, for months around 2020 we became comfortable paying less than $2 per gallon. Consider this the beginning of cost increases brought on by higher demand and lower production.

In February, Ukraine was invaded by Russia. This was a conflict that had been going on for years, but low on the radar of many. The public announcement by Putin of “military assault against Ukraine to aim demilitarization” quickly erupted into news headlines. Many western world leaders responded with unprecedented sanctions and condemning Putin’s and Russian Oligarch’s actions.
A week later in the US, President Joe Biden had the opportunity to speak of his steps to aid Ukraine in the State of Union Address. Hope was flying for some Americans after the speech supporting the Biden-Harris Administration’s plan highlighting “Buy American”, Ukraine, Economic Progress Report, Bipartisan Infrastructure Law, Inflation, Insulin, Energy Efficiency and more.

Since the beginning of 2022, every supply chain was battling to maintain affordable prices and delivery for customers. After over 100 days of the Ukraine-Russian war, the Ukrainian President Zelensky continues to meet with world leaders to push a plan that would economically force Putin and other Russian oligarchy to end the war on Ukraine. This pressure on Ukraine and Russia drastically effected steel, oil and food around the world — more cost increases. In China, the Shanghai Port had a local COVID outbreak, causing strict testing requirements and lockdown. The decrease in any operations in the city created a backlog of over 300% in trucking and port production creating an even larger backlog of orders — even MORE cost increases.

Conversation in April led to “What’s Next for Summer 2022?” It seemed every industry and/or product had a root problem that was affecting business to a detriment. For the following months, shelves were empty with no baby formula or beef, gas prices continue to rise and both used cars and new cars seem out of the possibility.

Could these last six months of events cause an economic hurricane? The optimists believe that it will be okay and the pessimists, not so much. The realists are working with logistics professionals to lead discussions around change and prevention. Company leaders are seeking advice from supply chain experts to learn how their businesses can make a difference. This article is our thanks to the experts that have the knowledge to guide a struggling organization to regain its ability to manage customer expectations, environmental footprint and cost optimization.

Critical shipments deserve some VIP treatment. With careful coordination our project team will prepare all aspects that are required when shipping over dimension, heavy haul and specialized trucks. Our professionals understand the unique needs — legal dimensions, permit, escort, governmental costs and equipment requirement — when shipping specialized.

The legal requirements for oversize, overweight and super loads is crucial to having a successful shipment. We understand that, when meeting timelines, there is a personalized service of planning permits, routing and execution of over dimensional cargo. Because of this PGT Services will communicate how permits stipulate the route followed as well as specific dates and times for travel.

Committed to total satisfaction and the highest in safety standards, we continue to work together alongside other valued carriers, consistently getting your product from point A to point B. Our most valued assets come from our customers, carriers and valued partners. Our long-term partnership with our sister company, Southern Pines, has offered us guidance and support in our venture into specialized trucking.

Special Services:

• Stretch RGN / double drop
• Lowboys
• Double drop
• Removable Gooseneck
• Multi-axle
• Tankers

Special Requirements:

• Permits
• Escorts / police escorts
• Legal dimensions vs over dimensions
• Bucket trucks

Special Challenges:

• Finding safe and reliable capacity
• Managing transportation providers
• Obtaining correct permits, route planning and escort availability
• Controlling transportation costs
• Visibility to shipment events

Learn More About PGT Services Specialized and Heavy Haul Services

FreightWaves — The outlook remains positive for both the housing and general construction markets. This market strength — paired with the relatively small number of flatbed carriers — means flatbed capacity is in high demand and difficult to secure. As shippers navigate this strained environment, they should consider whether their current 3PL partners are best suited for their needs. 

“Flatbed shipping is specialized. There are many more variables in terms of types of trailers and the required securement equipment than other modes,” PGT Services President Barret Rea said. “A specialized flatbed broker like PGT Services will understand this and provide a much better experience for both shippers and carriers.”

By using a flatbed-specialized broker, shippers virtually eliminate the risk of their freight being matched with the wrong truck, causing unnecessary delays and damages. They also increase their chances of finding capacity quickly because, while generalized brokers may work with more carriers overall, a specialized broker will be able to offer access to a larger number of flatbed carriers.

Partnering with 3PLs that understand the nuances of flatbed — and the differences between the flatbed and dry van markets — can make all the difference when it comes to securing capacity and locking down competitive rates. 

“Flatbed and dry van are similar only in that they both tend to be naturally affected by the economic freight environment as a whole. Otherwise they are driven by very different factors,” PGT Services Vice President Justin Burgh said. “Where dry van tends to be heavily driven by consumer spending, flatbed is heavily driven by infrastructure spending, the housing market, construction and the oil and gas market.”

Flatbed peak season tends to start early in the spring and last through the warm weather months, with a typical slowing during the peak dry van seasons. This is playing out now, as flatbed capacity continues to decrease and spot rates keep climbing despite recent dry van slowdowns. 

Current conditions in the flatbed space reflect the sector’s typical peak season, but capacity constraints and rate hikes remain affected by the heavy impact the coronavirus pandemic had on the already-small existence of quality flatbed carriers, according to Burgh. Like other carriers across the industry, flatbed companies are also reeling from a lack of qualified drivers. This tends to be exaggerated in flatbed, as new drivers tend to prefer the simpler dry van operations and existing flatbed drivers often make the switch to dry van when the market is strong. 

Navigating these conditions is difficult under the best of circumstances. It can be nearly impossible without the right 3PL partners. 

Even the most proactive shippers find themselves needing to move a large quantity of freight on a time crunch occasionally. This is the nature of working in a changeable, reactionary industry. Shippers will want to make sure they are working with the best broker partner possible when the pressure is on. 

“Aggregate flatbed data can be difficult to source so working with a trusted partner who understands the market and is buying large amounts of capacity is important,” Rea said. “We often see situations where shippers need to move large volumes in a short period of time. A specialized broker can spin up capacity quickly by aggregating the smaller carriers in our network.”  

Shippers will likely need to rely on partners with specialized knowledge even more in the future, especially as they continue to move away from yearlong RFPs that have proven to be costly in light of recent freight market volatility. 

Additionally, consolidation among flatbed carriers is expected to continue as larger companies work to expand their scale and smaller companies take advantage of the current seller’s market. This means shippers’ existing carrier relationships could be shaken up in the coming months.

Greater reliance on the spot market — coupled with changing carrier dynamics — will create a stronger need for deep industry insights. Specialized brokers are naturally more prepared to meet this need than their more generalized peers. 

“PGT Services doesn’t look to be all things to all people,” Rea said. “With the tightness in supply chains and fast-moving developments in technology, the market needs specialization and real expertise.”

PGT Services has been named the Flatbed Broker of the Year by The Home Depot, the world’s largest home improvement retailer. This recognition reflects PGT Services’ performance as a flatbed transportation provider and partner in The Home Depot’s mission to build the fastest, most efficient and reliable supply chain in home improvement. 

Earning this recognition was a significant accomplishment for the PGT Services team. PGT Services continues to focus on providing the best freight experience to our partners and this recognition from The Home Depot team aligns with PGT Services mission of ‘Safety, Service and Execution’ for our valued customers.