Smart trailer rental can help solve some of the problems that carriers are facing with trailer manufacturing shortages and price hikes. With the proper smart tools in place, logistics companies can increase capacity or improve profitability through semi-trailer rental pools.
Keep reading to learn why trailer shortages are occurring and how companies are adapting with modern tech support.
What’s Causing a Shortage of Semi-Trailers?
News about slow trailer manufacturing and delays in obtaining materials have pushed out truck and trailer manufacturing. 2022 reports did not show improvements in fulfilling orders on time, and backlogs will probably continue to stretch into 2023.
While the supply chain disruptions and material shortages were initially a problem, there was relief in Q1 of 2022. However, staffing issues continue to make it difficult for manufacturers to meet trailer demand, and as a result prices have skyrocketed.
The fast ramp-up of product demand during the pandemic also impacted demand for trailers. Many logistics companies increased their trailer capacity to meet load volume demands. Now that demand has stalled, some companies are left with excess assets, and others are still searching for trailers to help boost capacity.
Additionally, the driver shortage has created another shift in the logistics world that creates a shortage in one company and excess in another. For companies with plenty of drivers, seasonal downtime can be a real concern. Trailers that sit idling in company yards are not producing income.
Smart trailer sharing can help logistics companies solve these capacity problems.
How do Rentals Solve Trailer Shortages?
Few logistics companies have considered how modern smart trailer rental programs can help transform the logistics industry. Traditional trailer rental agreements are expensive, complicated, and drawn-out processes. Trailer rental has become smarter and easier for businesses with a digitized process. Trailer rental programs can solve shortages in several ways.
Rental Platforms Simplify Trailer Relocation
First, companies can set up which trailers they want to list and create guidelines around when they need it back and where they want it moved to. If a driver can get a load on the route, they can get paid a small fee for relocation of the empty trailer while also getting paid to move the load.
Without a platform in place, relocation is harder to visualize. The platform makes it possible to see a map of existing trailers and get details on capacity, timelines, price, and more.
Some Operators Lend Assets to Increase Margins
When operators are short on drivers, trailers tend to sit idle. For those companies that don’t have enough manpower to utilize their equipment, there’s a potential that money is hemorrhaging from their business each month.
Companies can balance capacity by renting out excess trailers to improve their margins. Listing available trailers on a smart trailer sharing app allow other companies to use them for a daily fee. While providers won’t make as much through rental as they would with a load, they can improve their bottom line and increase profits by renting out unused assets.
Drop-and-Hook Setups Help Reallocate Trailers
Some brokers and receivers run into issues of empty trailers being abandoned at loading docks. Drivers may not always wait to take a trailer to another location, resulting in a backlog of empty trailers. Some receivers prefer to unload trailers at their own convenience. For example, if they have an overstock of goods, some shippers may keep the product on the truck until they have additional product orders.
In these cases, receivers and brokers can set up drop-and-hook setups to get trailers back into the trailer pool and keep loading and unloading windows longer. Drivers can drop a full trailer and hook a different trailer from the lot to their truck to take it to a different facility, saving the shipper on detention fees.
Because this setup requires coordination, a smart trailer rental platform is needed to simplify the strategy and track the details. A smart trailer rental platform even opens the doors to owner-operators taking on drop-and-hook loads.
Rental Pools Digitalize the Load-Out Process
Shippers and customers can save money when their goods are hauled with a trailer that needs relocation. A loadout is more complex than the average haul because it requires setting up a gig that runs a similar route to where the trailer needs to move.
A smart trailer rental platform makes it possible to digitize the load-out movement, connecting more drivers and brokers with listings for trailers that need relocation.
Load-Out Marketplaces Provide Efficient Trailer Rental Access
A load-out marketplace provides a cost-effective solution to help logistics companies reduce shipping costs and use driver time more efficiently. With the current rise in inflation, finding a way to cut down on wasted effort and trips is more important than ever.
vHub helps match load-outs to power units with nearby gigs. The technologoy helps companies optimize their trailer pools as efficiently as possible, regardless of the size of their trailer pool.
What would have been a time-consuming and complicated process that involves a lot of paperwork has been simplified by load-out marketplaces. As a smart trailer rental platform, vHub keeps all information in a no-hassle cloud-based platform which conveniently allows companies to create lists and make business transactions.
Semi Trailer Rental Pools Digitize the Load-Out Process to Save Money
Using VHub’s digitized load-out process, companies are getting more than just a list of trailers. This is a lot more than just a list of trailers. We are digitizing the load-out process. With backlogged trailer orders and worker shortages, companies must rethink how they approach their routes.
Using vHub makes it possible for owner-operators, brokers, and carriers to:
- Increase their trailer pool size with available trailers.
- Optimize return trips to reduce deadhead miles.
- Increase business capacity and take on more loads.
- Lower rental costs by taking on load outs.
- Reduce the amount of wasted fuel and assets.
- Lower shipping costs while improving margins.
For customers and shippers, the value of load-out marketplaces is clear: lower shipping costs and faster delivery. Rather than wait for an available trailer with a driver, goods can be loaded into a trailer ready for relocation and picked up by an available driver.
The vHub platform makes it much easier for owners and brokers to see what trailers are available for load out. You can see semi-trailers for rent throughout the country to find the asset that best fits your needs. Plus, the app makes it easy to set up your asset listings for load-outs or rental if you have empty trailers that need relocation.
Tech is making it easier than ever to connect with other logistics companies for a smarter way of doing business.
Adapt to Asset Demand and use Smart Trailer Rental Tools
It’s time to change with tools that help you adapt to the current supply chain disruptions and asset shortages. You don’t know what tomorrow will bring, but you can be better prepared with a marketplace that supports smart trailer sharing and load-outs.
Smart asset sharing is going to redefine the way logistics companies approach capacity. It’s time to find smarter and more efficient solutions for the shipping industry.
If you are ready to jump into a growing trailer pool, it’s time to sign up for vHub
Our load-out marketplace and smart trailer rental app allow you to do more. Check out our quick, simple, and secure platform. Sign up now to get started!