Issues Facing the Trucking Industry

Cannonball Express Transportation

Author

January 9, 2017

Trucking IndustryThe American Trucking Association projects that the trucking industry is poised for serious growth by 2022. The forecast suggests that overall revenue for the trucking industry will rise almost 66% and tonnage will increase 24% by 2022.

However, 2016’s economy saw slow growth, shipping rates and volumes. Due to low demand, excess inventory and infrastructure bottlenecks, revenue YOY only rose 0.2%. But 2017’s trucking outlook improves: demand, spending and manufacturing are expected to pick up.

The driver shortage still overshadows the industry, and is expected to get worse. There aren’t enough qualified drivers filling open positions, and the aging workforce is retiring.

Adding to the enduring driver shortage, the ELD mandate has caused some drivers and small carriers to exit the trucking industry completely. 51% of carriers indicated that they’ve lost drivers who did not want to operate under ELDs. ELDs are mandated for use by all commercial drivers who track HOS begins December 2017. 81% of large fleets (more than 250 trucks) reported that they have already achieved full ELD implementation, while small fleets (less than 250 trucks) are much slower to ELD integration; only 33% have fully integrated ELDs into their fleet.

Shippers have little interest in using carriers that are non-compliant. Some shippers are stepping up and asking carriers to begin installing ELDs now. According to John Larkin of Stifel Financial Corp., shippers have decided it’s too risky to wait until December to see if their core carriers have sufficiently implemented the technology.

The other regulatory issue facing the trucking industry? Hours-of-Service and the outcome of the FMCSA’s studies. The association’s results will greatly affect the rules on driver rest periods. With stricter operation rules, drivers’ productivity will take a hit, which in turn will tighten capacity. Plus, carriers will find additional pressure to increase pay to keep drivers and have technology available so that drivers can be on schedule.

Experts expect a capacity crunch to hit the industry in late 2017. “A 1-2% shift in capacity could be an earthquake. That shift and a little spark to demand will give you that ‘2014’ feel,” says Brian Fielkon, Jetco Delivery.

The trucking industry is constantly changing; oil prices fluctuate, regulations are authorized and/or challenged, technological advances streamline processes, and environmental responsibility continues to move up the priority list. Carriers and shippers can work with a 3PL to enhance their businesses, connect to a larger network and focus on core competencies.

Nebraska Warehouse One-Stop-Shop | TechnologyEnabled 3PL Value-Added Services Warehouse | Freight Broker | Logistics

Nebraska Warehouse doesn’t just help to facilitate your shipments, but we are truly a one-stop-shop solutions provider. Our services include:

Latest News

The latest information about our Omaha storage warehouse services

Mental Health Awareness in the Trucking Industry

Long hours on the road, irregular schedules, days or weeks of separation from those you...


More Details

April 23, 2025

Developing Resilient Supply Chains for Pharmaceuticals

In the pharma supply chain, you're not moving boxes of generic products around. You’re shipping...


More Details

April 9, 2025

Using Data Analytics for Better Fleet Management

As cliched as it might sound, data analytics has genuinely revolutionized many industries—fleet...


More Details

March 14, 2025

The Impact of Fuel Prices on Refrigerated Transportation Costs

We might not think about it often, but the global sale of perishable foods, pharmaceuticals,...


More Details

February 12, 2025

Emergency Preparedness in Refrigerated Shipping: Lessons from the LA Fires 

The 2025 LA fires have caused almost incomprehensible damage, including destroying thousands...


More Details

January 31, 2025

Why Winter is a Critical Time for Temperature-Sensitive Shipments

Winter brings below-freezing temperatures. Preparation for the shipping and logistics industries...


More Details

December 23, 2024

Top 5 Industries That Rely on Refrigerated Shipping

  Refrigerated transportation is a huge industry that serves many different sectors of...


More Details

November 18, 2024

Why Temperature-Controlled Shipping Is Essential During the Holiday Season

The shipping and e-commerce industries are busy like Santa’s workshop around the holiday...


More Details

October 29, 2024

Top Safety Tips for Truck Drivers: Keeping the Road Safe for Everyone

Truck drivers do a much-unnoticed service to the American and global economy. But without them,...


More Details

October 10, 2024

Top Industries That Rely on Reefer Transportation Services

Logistics professionals know all too well that not all products can ship on a regular trailer....


More Details

September 20, 2024