Demand for carriers rose sharply in April, amid supply chain disruption, as Easter reduced working days and businesses rushed to move freight ahead of the Early May Bank Holiday.
According to TEG’s latest Road Transport Index data, artic demand rose 20% and haulage demand rose 12.6% across its carrier sourcing platform, during April.
Carrier availability fell 9.95% across the month, leaving 3PLs competing for a shrinking pool of capacity at a time when they could least afford disruption.
The numbers come against a backdrop of growing supply chain strain across UK business.
The Institute of Directors reported this month that one in five UK firms have already experienced supply chain shortages linked to the Middle East conflict, while over half expect further disruption in the coming months. Yet only 37% have taken any action to mitigate the impact.
Rising fuel costs are adding a further layer of pressure. When diesel prices spike, the margin on pre-agreed loads can shrink and carriers may walk away from work that no longer covers their costs.
For the 3PL that booked that carrier, the load still needs to move, often at short notice, creating a scramble to re-source capacity and keep freight flowing.
“The underlying trend matters more than any single month. Demand is rising, capacity is tightening, and fuel costs are making carriers pickier about which loads they take. Each pressure point compounds the last,” said James Mead, TEG head of enterprise.
However, flexible capacity is available for businesses that know where to find it.
On the TEG platform, loads are attracting an average of 6.7 quotes per load, even during April’s demand spike, and TEG expects demand to rise further ahead of the late May bank holiday on 26 May.
Mead added, “Flexibility is the antidote to volatility. The businesses that can scale capacity up and down as conditions change are the ones that keep moving.
“The technology now exists for enterprises to access open market capacity with the same confidence they have in their own fleets.
“That is why platform bookings are up 30% year on year.”
