Would you ever have imagined that there would be a dry van shortage? Nationwide, trailers are becoming more and more scarce. 2020 saw the start of what has become a continuous problem of lack of parts and labor, which has created the issue. It started, unfortunately, when the pandemic created labor shortages. Trailer manufacturing plants were either shut down, or workers were not comfortable going to work or were out sick. This is the same situation that companies manufacturing parts for trailers ended up in. All of this has caused new trailer production to flatline for the last nine months. Here are four reasons for the current trailer shortage.
1. Historically High Demand
Trailer manufacturers are reporting roughly 25% fewer trailers having been produced than in 2019. Companies are seeing the highest demand in history for new trailer purchases due to the tight freight market, yet they are unable to fill the need. Most have a backlog of four times or more orders from freight customers. As a result, what started out to be eight months behind for a new trailer delivery has turned into thirteen months.
2. Lack of Production
The price of steel and the lack of production of parts, such as suspension components, have also forced the industry to have to pass along the increases to their customers. While fleets are trying to expand, the trailer manufacturing companies have stopped new orders. They are loaded with orders deep into the 4th quarter of 2022 and beyond. Any orders that are in production now are for top customers, as they have to pick and choose which orders they already have that are the most important to fulfill.
3. Fewer Existing Trailers
New trailers are not the only issue, though. Older model trailers are having problems as well. You do not see as many for sale as were seen in the past. Due to the shortage, those for sale are at a premium price beyond anything ever seen. Parts are also hard to find for repairs. This has created an issue with older trailers becoming out of service and unusable. Some major component parts are backed up for six months or more.
4. Labor Shortages
Labor is also an issue for repair shops. Skilled trades have struggled with hiring since the start of the pandemic. Roughly 68% of companies have been unable to fill positions, and nearly 50% are understaffed in all skilled trade areas.
Hopefully, our workforce will be able to return to normal soon and help the struggle that trailer manufacturers are having. Renting a trailer is an excellent alternative to purchasing one. Contact us today for availability.
