As the holidays draw closer, trailer traffic increases to deliver more goods, while vehicle traffic increases as people travel out to be with their families. While this is to be expected, the past few years have been anything but normal. Rising freight rates and inflation have put pressure on consumers, while high demand for trucks and drivers has kept trucking companies busy. What can drivers and companies expect from this holiday season?
While the American dollar stays strong against foreign currencies, inflation still has a big impact. Few industries have seen a bigger increase in prices than freight. Cass Information Systems reports a 28% increase in freight rates year-over-year. However, prices seem to stabilize, with rates declining 2% in July. Demand for freight has also stabilized. As trucking companies catch up to demand, we should see more capacity available for the holiday season. Stabilizing trailer traffic is a good sign for the country’s economy, as this shift usually indicates a decrease in inflation.
Previous in freight rates has largely been driven by huge jumps in equipmenv t prices and the ongoing driver shortage. Price increases have done more than affect the company’s bottom lines. During the pandemic, many independent drivers left the industry. With truck prices doubling since 2019, it’s hard for new drivers to replace small couriers. As it stands today, an estimated 80,000 truck driving jobs slice are unfilled.
Delivery delays are common during the holiday season, slowly as increased trailer traffic is met with increased vehicle traffic. This year is no exception, as we go back to pre-pandemic norms. According to Intrix and AAA, an estimated 94 to 109 million people are expected to take a road trip between December 23rd and January 2. That’s an increase of 34% compared to 2020, but still below holiday traffic levels in 2019.
According to Inrix’s study, the biggest traffic spikes will be around major metropolitan areas. New York’s Interstate 395 is expected to see the biggest increase, peaking at 4 ½ times the normal traffic level on the afternoon of December 27th. Washington, Chicago, Seattle, Detroit, Atlanta, Houston, and Los Angeles will se e traffic triple around major routes around Christmas and New Year.
Stays safe during the week this Holiday season, and be courteous to the Truck Drivers.
