Having adequate capacity is critical to supply chain execution. Rating API can help alleviate some of the pressure on this important transportation management activity.
A Multi-layered Issue
- Driver shortage – From being sidelined until markets and warehouses opened back up to working overtime to meet the nonstop demand, the pandemic introduced difficult working conditions for drivers. Additionally, the majority of drivers are nearing retirement age, and not nearly enough new drivers are entering the industry. Over 100,000 new truckers would have to enter the industry per year over the next 10 years to meet the expected demand. Without enough drivers, there simply isn’t a way to increase capacity.
- Fewer trucks – With fewer drivers comes fewer trucks. A semiconductor shortage has also limited new truck production. Not only that, but specialized trucks, especially refrigerated trucks, are frequently being used to safely deliver and distribute vaccines across the country. Every sector of the truckload market continues to experience elevated load-to-truck ratios, which also increases prices significantly.
- E-commerce boom – This peak season, consumers are encouraged to shop early or expect major delays. Due to the pandemic, more people started shopping online and haven’t stopped. As retailers recover from closures and reduced sales, and address the demand for fast and transparent shipping, there’s more competition than ever to secure a truck. Continued domination of e-commerce in the market means capacity will only grow tighter.
Smaller Business, Bigger Challenge
According to the most recent U.S. Census Small Business Pulse Survey, 45% of businesses said they are having domestic supplier delays, up from 26.7% during the first week of the year. Unlike larger corporations, small businesses don’t always purchase products in mass but often rely on certain items in specific quantities. With supply chain shortages, this continues to impact smaller businesses with items in low stock or not in stock at all.
Where Rating API Steps In
Redwood’s Rating API
Redwood is a preferred integration specialist to some of the most recognized TMS providers in the industry, including MercuryGate.
In partnership with MercuryGate TMS, Redwood’s Rating API connects customers to Redwood’s private network of over 30,000 carriers, enabling MercuryGate TMS users one-click access to thousands of carriers, delivering speed, security and scalability. Within seconds, customers can compare rates and secure capacity with flexible coverage for contracted and non-contracted freight with 100% tender acceptance.
MercuryGate’s highly configurable, SaaS-based TMS can manage multi-leg, multimodal shipments across the country or across the planet as a single, digital freight platform for all shipments and modes. In addition to instant rates, Rating API can also provide robust capacity and tender acceptance.
Within a SaaS-based platform, real-time tracking resources open the doors to savings across all freight management segments, including shippers, freight brokers, logistics service providers (LSPs), and carrier drivers.
API to the Rescue
Michael Johnson is the EVP of Strategy at Redwood Logistics. In this capacity, he works with the Executive, Brokerage, and Technology teams to drive business growth through operational efficiencies and digital transformation. He is responsible for identifying and executing strategic initiatives that are aligned with the short and long-term goals of Redwood Logistics.