Supply Chain Challenges for Modular Construction Logistics and Oversized Freight

Modular construction and oversized freight come with their unique supply chain challenges that may not exist with traditional freight. To move modular construction buildings on time, in sequence, and intact, an intimate knowledge of transportation and preparation for these challenges is required so the logistics still can be executed flawlessly—no matter what.

In this post, you will learn the seven top supply chain challenges for modular building transport and oversized freight shipping. Then, we’ll share how we tackle the modular building transportation challenges, so our clients get fast, reliable shipping service every single time. 

Common Modular Construction Supply Chain and Transport Challenges with Oversized Freight

With modular construction, a building is constructed off-site using the same materials and standards as traditional construction methods. It is becoming more popular than ever due to its many benefits, such as controlled conditions, faster production times, reduced costs, and less waste. 

7 Challenges

Because the buildings are constructed nearly entirely off-site, the freight will likely be oversized and require special logistical considerations and project management expertise for transit and installation. 

1. The Recent Increase in Raw Materials

Because of the pandemic, the price of raw materials has spiked, specifically lumber and steel. Experts attribute this to increased domestic and foreign demand, stimulus, growing wages, and an economy that, as a whole, seems to have made a shift from services to goods. 

2. Damage in Transit

Oversized freight is more prone to damage while in transit. Improper handling, poor delivery practices, and incorrect loading/unloading are all too common and can cause significant damage. This leads to lengthy (and costly!) delays while they get repaired or replaced. Route surveys and a deep knowledge of oversized permit shipping regulations ensure your freight is protected in transit, and working with experienced transportation and logistics partners certainly helps, too. 

3. Increase in Freight Rates

The growth in modular and off-site construction is outpacing domestic transport availability, and freight rates across the country have increased because of the imbalance between logistics supply and demand. This is a significant logistics challenge to consider specifically for modular and oversized freight, as they’re built offsite and transported and heavily rely on the dependability of transporters.

4. Driver Capacity 

Another reason why freight rates have increased is that there’s a shortage of drivers. Drivers are retiring faster than they’re entering the industry. A new federal clearinghouse alerts carriers to drivers who have failed drug tests or who have DUIs or other substance abuse problems on their records. Over 75,000 drivers were barred from driving since the clearinghouse went into effect. 

Since the pandemic, fleets have struggled to retain drivers to respond to increased demand and began offering higher and more consistent salaries and bonuses to attract and keep drivers. Of course, they pass this cost on to customers.

5. Requirement of Specialty Transportation Equipment

Modular and oversized freight requires specialty trailers that can be hard to secure. Suppose the exact trailers needed to move are not available. In that case, disruptions to construction schedules lead to costly delays that proper logistical foresight, planning, and strong supplier relationships could have prevented.

Learn More about Our NEW specialty trailers : Hydraulic Trailers Available

6. Requirement of On-Time and In-Sequence Deliveries

On-time and in-sequence deliveries are critical for modular construction. Naturally, as they create the modular components in large, complete modules, they need one before the next—like building blocks. Deliver them out of order, and you come up against storage issues on site. Deliver late and the whole construction timeline gets backed up. Not good when your reputation is on the line. 

7. Lack of Visibility During Transit

Knowing precisely when the modular goods will be delivered is essential. After all, timing the construction accordingly is crucial as these are not small matters! Most transportation providers don’t offer the best freight tracking service. This makes it difficult to ensure timely and in sequence delivery. When the on-site construction team is in the dark about the transit of modular pieces, it can create a mess on the ground before the freight has even arrived. 

Tackling Supply Chain Challenges in Modular Construction and Oversized Freight

With flawlessly executed logistics and efficient supply chains, the modular construction and oversized freight challenges of today can be significantly reduced or eliminated. At Stream Modular, we know what it takes to move your freight flawlessly from A to B while swiftly sidestepping new challenges that paralyze most. 

We’re built for it. 

We work with reliable transportation carrier partners who have aligned values and services to ensure the people, equipment and process moving your modular freight is as quality as your product. That way, you’re the hero—just like we like it. To learn more about how Stream Modular can help make your next project a success, reach out!

Stream Modular is a transportation logistics company specializing exclusively in modular construction. We help modular manufacturers and builders transport mods, pods and panels so they arrive on time and safely to the build site.