Are you facing increased demand and low trucking supply? E-commerce is changing the world of trucking: experts predict that spending will surpass the $3 trillion mark by 2020.
Keeping track of trucking industry trends is important, especially for large manufacturing companies. The battle for final-mile shipping is being fought all over the United States as companies like Uber and XPO Logistics gear up to get a larger share of this lucrative market.
1. Driver Shortage
As Walmart and Amazon rush to meet increased order volume, the transportation industry is struggling to find drivers.
Despite increased pay and bonuses, the freight transportation industry lacks more than 50,000 drivers. Long hours make for a tough job and many younger workers do not see trucking as an attractive lifestyle.
While some truckers report making up to $100,000 per year, the typical pay is closer to $50,000. Some trucking companies have increased their pay rate by more than 15% but are still having trouble finding willing workers.
2. Electronic Logging Devices
The trucking industry is experiencing some pushback from experienced drivers after new electronic logging devices laws began last year.
The ELD laws require the installation of electronic tracking devices that will ensure drivers only drive for 11 hours in a row. They are then required to rest for 10 hours every day.
For some smaller trucking companies, the cost of installing the ELD devices comes as a shock to the system. With fewer drivers on the road than ever before, mandatory rest periods could slow down shipping times.
3. Rising Spot Rates
Spot rates should continue to rise through 2018, a trend relating to the shortage of truck drivers on the road.
Experts predict that the rates will even out, but for the time being there will be more freight shipped via railway. Shipping freight via train is cheaper than moving it by truck and many major shippers are already making the switch.
XPO Logistics arranged more than 10 million final-mile deliveries in 2017, but they have a fleet of more than 5,000 dedicated drivers and access to new shipment tracking software.
More Trucking Industry Trends
In the next several years, new technology is going to revolutionize the trucking industry. Uber Freight, Amazon, and Convoy are taking advantage of apps that connect truckers with on-demand freight.
In the next few years, these smaller companies stand a good chance of becoming competition for FedEx, UPS, and the United States Postal Service.
Tesla has also rolled out an electric truck that can go 500 miles on a single charge. Once there are more charging stations, these electric trucks have the potential to change the shipping market. Truckers who currently spend thousands of dollars on gas could find themselves a few pay grades richer.
New technology will continue to dominate trucking industry trends. We offer effective solutions for your shipping needs, allowing you to track delays, weather conditions, and damage to your shipment.
Drop us a line and let us know what shipping problems you’re dealing with. We work with businesses of any size and are more than happy to help.