What is Truck Supply/Truck Capacity?

Truck supply and capacity are macro economic terms to describe the current economic condition of available trucks to loads (supply vs. demand). For example, if I had 500 loads moving out of Houston and researched the market and I see only 200 trucks available - then I have more freight than capacity. Capacity is the availability of equipment for any given period. If I owned a trucking company and I had an empty trailer or tractor sitting on the yard ("on the fence" as they call it), then I have available capacity. Of course, trucks only produce revenue when running with freight ("loaded miles").

Every state has a different amount of daily capacity based simply on this question: Is the population consuming or producing more products?
It is imperative to understand truckload capacity because capacity impacts shipment prices. So, if your client doesn't understand why the price is high, and you can educate them on the daily/weekly/monthly capacity (current market conditions), then they will begin to understand. And you will be showing them that you really know your stuff.

Never assume rates are the issue. A shipper will more often than not, gladly pay a few extra cents per mile if they know you, as their broker, are looking out for their best. It is also important that you pay your carrier a bit more than all the other brokers. Also understand why we have the fuel surcharge (.28 a mile is the average right now). The shipper should be paying it to the broker and the broker should be giving it to the carrier.
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Strive to under promise and over deliver. Never speak negative about anyone. Keep your positive spirit in all matters. Make the carriers’ and shippers’ goals your goals.

Moving on,

Jeff Roach
www.brooketraining.com