Over the past few years, it has become increasingly difficult to secure truckload capacity. Currently, the overall trend in the logistics industry is that freight volume continues to increase, while truckload capacity cannot keep pace. In order to secure truckload capacity, you must understand the challenges associated with it which include truck driver shortages, increased regulations, and various economic factors.
Truck Driver Shortages
For several years running, driver shortages have been a consistent issue in the trucking industry. The two main factors that have led to a shortage in drivers include the number of drivers retiring and the amount of growth within the trucking industry. With the increasing number of drivers retiring, there is just not enough qualified applicants that can replace these jobs. The American Trucking Associations (ATA) estimates that by 2024, there will be a shortage of nearly 175,000 drivers. As the trend line for freight volume continues to increase, the number of drivers required simply can’t keep up.
Increased Government Regulation
As government regulations continue to increase, every business is affected in a unique way. Currently, CSA compliance, E-Logs, and Hours of Service regulations are affecting drivers and their availability. These regulations can be a burden to shippers because of the possibility of penalties, fees, and infractions if they are violated. Some infractions from government regulation can even revoke operating authority for freight carriers leading to an even larger shortage of drivers. Currently, the Electronic Logging Device (ELD) mandate is set to take effect this December. This regulation is causing major concern in the trucking industry and some carriers are even worried they may have to leave the industry or at the very least remove trucks from circulation.
Economic Factors
Not only is government regulation and driver shortages making it difficult to secure truckload capacity, but economic factors are also having an impact. A main concern in the industry right now is trucking equipment shortages. These shortages are due to the fact that economic pressure forced carriers into holding onto tractors and trailers longer than normal because these companies could not afford to replace them right away. Now that many carriers are in a position to replace old equipment, the demand for tractors and trailers has spiked while production has not. As a whole, truckload capacity is becoming harder and harder to secure because of factors such as this.
Securing truckload capacity can be very difficult and time-consuming due to the shortages, regulations, and economic factors affecting the trucking industry. Logistics Plus can help ensure you secure valuable truckload space. Contact us today!
