If you’re in the trucking business, you know it’s a harsh industry to stay afloat. With new regulations being passed, fuel prices rising, and a shortage of drivers, it’s no wonder that so many trucking companies are struggling to keep up. Here are some of the significant challenges facing the trucking industry today and what you can do to overcome them.
New Regulations
One of the biggest challenges facing the trucking industry today is the constantly changing regulatory landscape. Every year, new rules and regulations are being passed that make it harder and harder to operate a trucking business.
The most recent example is the ELD Mandate, which requires all trucks to be equipped with an electronic logging device. This has been a significant headache for trucking companies, as it’s expensive to implement and challenging to use. If you’re in the trucking business, it’s crucial to stay up-to-date on the latest regulatory changes to be compliant.
Fuel Prices
Another big challenge facing the trucking industry is the high cost of fuel. Fuel prices have been rising for years, and there’s no end. This poses a significant problem for trucking companies, as fuel is one of their most significant expenses. To combat this, many trucking companies have implemented fuel surcharges, which are passed on to the customer. However, this isn’t always enough to offset the high fuel cost. When fuel prices are high, it’s essential to be as efficient as possible, so you’re not wasting money.
Driver Shortage
One of the most severe challenges facing the trucking industry today is the driver shortage. There are not enough drivers available to meet the demand. This has led to longer wait times for shipments and higher rates for drivers who are willing to work. The driver shortage is only expected to worsen in the coming years, so trucking companies must find ways to attract and retain drivers. Some ways to do this include offering competitive pay and benefits, flexible schedules, and good working conditions.
Economic Uncertainty
Another big challenge facing the trucking industry is economic uncertainty. With Brexit on the horizon and tensions between China and America continuing to rise, there’s no telling how global trade will be affected in the coming years. This could lead to less demand for freight transportation, which would be bad news for truckers. As a result, trucking companies need to diversify their customer base so they’re not relying too heavily on any market or region.
These challenges affect the industry in various ways, with some obstacles forcing businesses to close down entirely. Thankfully, there are ways to deal with these challenges. Here are some of those ways.
Technology
Technology is changing almost every industry, and the trucking industry is no exception. New technology is making trucks more efficient and easier to drive. While this is good news for truckers, it also means that there will be even more competition from other modes of transportation, such as trains and planes. Therefore, trucking companies need to find ways to embrace new technology if they want to stay ahead of their competition. Here are some essential technologies to help your business avoid the abovementioned challenges.
Tire Management
Last-mile services are becoming an essential service for many trucking companies. However, they can also be a large cost sink. One way to alleviate this is by reducing tire damage using tire management software for last-mile deliveries. This software manages tire pressure, tracks usage, and helps schedule preventative maintenance.
Fleet Management System
A fleet management system can help reduce fuel costs by tracking driver behavior and routing trucks. It can also assist with compliance by keeping track of driver logs and other regulatory requirements.
Automated Dispatch
Automated dispatch can help reduce driver shortage by automating scheduling and route planning, freeing up time for drivers. It can also improve communication between drivers and dispatchers, making for smoother operations.
Automation
Automation is becoming increasingly common in warehousing and logistics, and it’s also starting to enter the trucking industry. While automation may seem intimidating, it can help alleviate some of the industry’s challenges, such as driver shortage and economic uncertainty. However, as trucking companies adapt to automation, they must also focus on upskilling their workforce and finding ways for employees to work alongside technology.
Training
Another way to deal with the challenges above is by giving your drivers and staff proper training. This includes training on new technologies and safety training to reduce accidents and compliance issues. Ongoing training can also help retain drivers by keeping them up-to-date on industry developments and giving them career growth opportunities.
Ultimately, the trucking industry faces some significant challenges, but there are ways to overcome them. Trucking companies can stay ahead of these challenges and thrive in a constantly changing industry by embracing new technologies, investing in training, and finding ways to attract and retain drivers. This way, they can ensure their business’s success in the face of economic uncertainty and other challenges.
