Keith Davis, CEO

Skyrocketing Capacity Costs-What’s the answer?

In my 40+ years in this business, I have never seen a capacity shortage like we are currently experiencing. I built Sterling Transportation on a reputation of consistent express service and predictable pricing.

I’ve put a lot of thought into the current state of our industry and the short and long-term impact our responses to this crisis will have.

We, as an industry, continue to suffer from a major capacity shortage brought on by the perfect storm of increased demand, a lack of drivers, and an international equipment shortage.

But this shortfall is so severe that it has made it impossible for trucking companies to maintain delivery schedules.

As an industry, our attempts to avoid delays are driving prices even higher. These rising costs are unsustainable. There is only so much that we, the carriers, can absorb. Or that our customers can withstand through rate increases and surcharges.

Sterling Transportation was built around express service and we would like nothing more than to be able to maintain our schedules. But if the Customers and Carriers can align around slightly more relaxed delivery deadlines, we will all benefit from stabilized rates and weather this storm together.

An expanded version of this message is on page 14 of the Summer 2021 issue of Airforwarders Magazine. You can read the full article HERE.