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Why we are one of the fastest growing Logistics companies in Texas
Our mission at Interstate Freight Solutions is simple: to provide high-quality services for our valued clients. Our team goes above and beyond to cater to each project’s specific needs. Through open communication and exceptional service, we hope you’ll find what you’re looking for with our Trucking Company. For more information or general inquiries, get in touch today.
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Flatbed demand has increased 102% year-over-year and has been on a steady climb since August 2016.
You may be wondering what’s causing this usually high demand for flatbeds. Here are a few of the key drivers of demand:
Oil, natural gas, and plastics
These three products are interrelated and contribute to the high demand for flatbeds, especially along the Gulf Coast. Natural gas is a by-product of the fracking/oil production process and, until recently, low domestic prices and lack of infrastructure meant that the gas was often flared off. Higher international natural gas prices have led companies to convert the gas to its liquid form (LNG) and export it.
Natural gas and oil by-products also feed into plastics production, which has led to a building boom for the petrochemical industry along the Gulf Coast. See our blog post How Natural Gas and Plastics Impact the Truckload Spot Market.
Wind Energy
Fossil fuels aren’t the only energy source fueling flatbed demand. There are now more than 50,000 operating wind turbines in the U.S. A utility-grade wind turbine has more than 8,000 parts. And while some parts are small enough to be transported in dry vans, the big stuff--blades, towers, and the turbines that turn the blades--require flatbeds for transport.
As you can see, Texas is a hotbed of activity for wind energy manufacturing. Along with oil and natural gas production, wind energy adds to the huge demand for flatbeds in Texas. It’s no surprise that Texas has the top three markets for spot market flatbed freight in the country: Houston, Dallas and Fort Worth.
Manufacturing locations for the largest components of wind turbines: blades, towers, and turbine assemblies that turn the blades. Source: American Wind Energy Association.
Construction
Construction has always been a major source of flatbed freight. Lumber, steel and other construction materials move on flatbeds. Residential construction, commercial construction, and state and federal infrastructure projects all contribute to demand. According the most recent numbers from the U.S. Census Bureau, sales of new single-family homes have increased 15% from March 2016 to March 2017, rising from 537,000 to 621,000.
New residential home sales have risen 15% in the past year.
Automotive
Last year was a banner year for auto sales. Sales of new cars and light trucks hit 18.3 million units in December 2016. Although sales have dipped in the first months of 2017, the auto industry has seen year-over-year increases for seven straight years. Many of the raw materials-- as well as the finished vehicles--are transported on flatbeds.
Sales of autos and light trucks have experienced year-over-year highs for seven straight years, reaching 18.3 million vehicles in December 2016. Chart courtesy of Macrotrends.
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Top markets for flatbed freight
Houston
Dallas
Ft. Worth
Chicago
South Bend, IN
Cleveland
Atlanta
Los Angeles
Gary, IN
Joliet, IL