Filling an order isn’t the end of the ink manufacturing process. The ink has to travel to the customer. The same goes for ingredients for ink; ordering the pigments, resins, additives or other raw materials is the first step, but the final step is when the products are shipped to the ink makers.

The problem is that there is a shortage of truck drivers. According to the American Trucking Association’s website, the issue is dire:

“The for-hire trucking industry is facing a shortage of drivers. Despite the national unemployment rate being under 5%, the industry struggles to find enough qualified drivers. The shortage stood at roughly 36,500 in 2016 due to a multitude of reasons, including demographics, regulatory, and the fact drivers are away from home for a period of time, among other factors. This figure was down from 45,000 in 2015 but was expected to surpass 50,000 by the end of 2017.”

As a result, getting shipments can be challenging.

Jeffrey Shaw, chief supply chain officer, Sun Chemical, said that there are several dynamics impacting transportation costs and driver shortages.

“Changing driver demographics, legislation, difficult work, time away from home, and lower wages all contribute greatly to cost increases and driver shortages,” Shaw reported. “As drivers near retirement age, it is difficult to find replacement drivers or back-fill open positions. Then, when trucks are moving on the road, legislation has decreased the hours of service generating negative productivity, thereby continuing to impact cost since there are less available drivable hours. Even with these challenges, we continue to work closely with our carriers to ensure we are a ‘shipper of choice.’ We want to be a shipper that carriers want to work with and a stop that drivers want to have pick-ups and deliveries.”

“The same changes we all faced in 2018 remain this year and will likely continue for the foreseeable future in regards to driver and bulk tanker shortages,” said John Hrdlick, president and CEO of INX International Ink Co. “We must continue to look for ways to better manage our freight costs and adapt to the current conditions.”

“Driver shortages are one main reason that has impacted transportation costs,” added Juan Deleon, INX’s corporate logistics manager. “ELD (electronic logging devices) implementation was another factor. However, the driver shortage is why carriers are working on increasing wages and benefits to retain them.”

Ken Klug, purchasing director for Wikoff Color, pointed to the lack of drivers entering the transportation industry.

“Demand for drivers continues to increase due to lack of new candidates wanting to enter the industry,” Klug added. “As older drivers have retired, fewer qualified drivers have expressed interest in joining the transportation profession. Carriers have been forced to increase their pay to attract new people into the industry and to keep existing drivers from leaving for higher wages. The strict governance of electronic driver logs has also played a role in transportation cost increases and driver shortages.”

“A lack of workforce is behind rising transportation costs,” the purchasing team at Toyo Ink America noted. “According to ATA, the aging population of drivers and new regulations make it difficult to attract new drivers. Availability of qualified technicians to repair trucks and freight demand are a few other reasons for a lack of workforce. Driver pay, labor for maintenance on equipment, and licensing continues to increase.”

Toyo Ink America’s team added that ELD regulations were enforced to comply with driver safety, which impacted the industry.

“This caused transit time increase, trucking capacity reduction and shipping cost increase,” the purchasing team at Toyo Ink America reported. “There was a wave of shipments to avoid tariff from China implemented in 4Q. Similar issue with expectation of the second wave to avoid anticipated tariff from China. Overseas shipments delays, port delays, congestion due to labor shortages keeping containers longer in yards. Shipping by rail can be challenging. This adds pressure on trucking out of port. Diesel prices are unpredictable and can cause huge spikes in fuel surcharge.”

As a result, ink industry executives said that they are impacted by shipping.

“We did see a bit of a spike last year on the TL side,” said Deleon, “due to the ELD implementation. However, we haven’t been impacted as much on the LTL side. We managed to quote some TL lanes and locked the carriers into this agreement despite the market trend.”

“Our freight/logistics group,” said Hrdlick, “is working very hard to minimize the impact of rising freight cost. All options are being evaluated.”

“We have had some delays at the ports due to congestion. However, we have been able to manage this through communication and the ability to use multiple resources to resolve any issues,” Toyo Ink America said. “Our 3PL providers have been providing us excellent service and communication regarding any trucking issues domestically. The communication that they give us allows us to route our products with the most efficient carriers regionally.”

“Wikoff has received increases from every carrier, but we are coping with these challenges by closely evaluating delivery lanes to ensure we are getting the best cost and service,” Klug said.

Shaw added that working closely with shipping companies as well as customers and suppliers is critical to managing transportation schedules and costs.

“Like most shippers, today’s transportation issues may impact us from time to time,” Shaw concluded. “Our focus continues to be on service levels to our customers, eliminating damages and mitigating cost increases. In order to provide the best service to our customers, our logistics and supply chain teams work closely with our carrier base to mitigate transportation issues. Communication is paramount. As in any relationship, managing expectations is critical and that is what we do with our carriers. Our objective is to be a ‘shipper of choice.’ We want to be a shipper that carriers want to work with, in order to make deliveries. Conducting regular review and business sessions with our carriers is a key action for us.”