A shortage of truck drivers and flat-bed trucks is delaying steel shipments at critical points in the supply chain and further driving up shipping costs and lead times, Fastmarkets has learned.
In March, there were 84 loads that need to be shipped for every available truck, up from 22 loads for every truck in March 2020, according to DAT Freight & Analytic."Demand for the entire flat-bed market, of which steel is a huge piece, has been surging for six weeks and is approaching record highs," Avery Vise, vice president of trucking at FTR Transportation Intelligence, told Fastmarkets. Steel products, such as beams and coils, are shipped via flat-bed trucks due to their heavy weight, as well as their size and shape, which require special handling precautions, according to R+L Global Logistics."It's terrible right now. A lot of shipping guys say it's the worst they've ever seen," a southern distributor said. Flat-bed truck shipping is comprised of two major markets - industrial and home construction, according to Vise. Heavy machinery, mostly headed for the Permian Oil Basin, is the third largest segment of goods shipped by...