Five reasons why flatbed shipping is on the rise

Five reasons why flatbed shipping is on the rise
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Flatbed Transportation is in great demand right now and this demand continues to grow. The trucking market is showing promising growth from 2020. This is despite the fact that in some other areas of transportation, demand is declining.

Demand is so strong at Flatbed Transportation that some firms have to suspend or delay deliveries simply because they can’t keep up with the task. Flatbed Transportation is not the only shipping method. It can also be delivered using tankers, trains, airplanes, refrigerated containers, and many other types of transport.

But why aren’t they as popular as Flatbed Freight Transportation? One of the reasons is that the transportation is carried out in huge containers. For example, in tanks. And in order to get the goods from this container, you will need to try. That is, it takes a lot of time and effort to extract the product, in contrast to Flatbed Transportation, where the whole process is quite simple.

Also, this type of transportation is very popular due to the absence of the need for packing the goods and due to saving money, since the role of an intermediate warehouse is performed by the vehicle itself, on which the cargo is transported. It is also a serious factor that on-board transportation is safe and reliable. It should also be noted that this transportation option is available for both small organizations and large corporations and even individuals. This is useful if you decide, for example, to transfer property from your home to another location. Now let’s look at the reasons for the growing demand for flatbed freight transportation service.

1. Growth in construction activity

Growth is now seen in the construction of industrial enterprises and private sectors. For example, this area is expected to increase by 4.9% compound annual growth rate by 2023. The demand for the purchase of new apartments in the United States in 2021 increased by 30%. And also, according to research, in the manufacturing sector, 85% of enterprises are experiencing moderate to strong growth.

If the demand for the construction sector is growing, it will be necessary to deliver construction equipment, materials, and components. And the most convenient and simple way of delivery of all these things is carried out using flatbed trucking. For example, some building materials such as wood or steel can only be delivered this way.

2. Increased demand in the oil and gas and agricultural sectors, as well as in the automotive sector.

Now the demand for crude oil and gas is increasing in the world. Oil prices are growing, drilling of wells at sea and onshore is intensifying. This means that the supply of these substances and all materials based on them will grow. This situation is partly due to the strong demand in the energy sector. So because of the growth in demand for energy, the demand for oil and gas is also increasing. And here, the most convenient and simple way of delivering these materials is Flatbed Transportation.

In the agricultural sector, commodity prices remain low. While the car fleet is getting old and the population is increasing. All this will lead to the fact that the old equipment will be sold, and the new one will have to be purchased. Also, the growth in demand here is associated with tax reform and government subsidies for the production of agricultural machinery. In any case, there will be new deliveries, which are most conveniently made using Flatbed Transportation.

In the automotive industry, there are also positive trends that contribute to GDP growth. The demand for trucks and cars is increasing. The consequence of all this will be an increasing demand for freight shipping.

3. Large buying activity

Recently, and especially during the holidays, retail sales have been increasing at a rapid pace. Consumers are purchasing more and more products. As a consequence, retailers order larger and larger quantities of goods, and factories, in turn, produce more of a particular product. All this works like a vicious circle and in this situation any company needs an established logistics system for the delivery of retail goods.

4. Increased demand for imported goods.

It is one of the most significant drivers of demand for Flatbed Transportation. Many goods coming from abroad are of higher quality than those produced in the country. Many of these products are also quite cheap. Like, for example, those that are created in China.

5. Changes in tax legislation.

The government supports the energy sector and opens up opportunities for oil drilling in the United States. There is also an opportunity to export gas and benefits for the production of wind energy remain. It is worth mentioning that the state introduced a tariff on imports of aluminum and steel. It will lead to an increase in the production of these materials domestically. And this is in turn will lead to an increase in demand for the Flatbed Transportation Service.

We have found out the reasons why the demand for flatbed cargo transportation has been constantly growing lately. This means that now is a great time to establish logistics in your business and choose the right company that deals with this issue. Choosing the right trucking company will make your business more productive. So pay attention to what’s happening in the sector, take a close look at the increase in demand and upgrade your delivery system by choosing a good Flatbed Transportation Service.

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