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GROWING TRENDS IN THE TRUCKING INDUSTRY IN 2022

June 6, 2022 0truck businessTrucking

The trucking industry plays a significant role in the United States economy and ensures businesses operate. It is also one of the most extensive revenue streams, hauling above 8 billion tons of goods every year. These account for nearly three-quarters of all goods transported in the United States.

The trucking industry is a vital source of job opportunities, and millions of drivers depend on it to provide for their families. But the turmoil of the past years has caused tremendous changes with shifts in demand, a changing workforce, and new legislation. These have impacted its overall production and development. However, it is safe to say various factors have influenced how the industry functions and different elements have changed how work gets done within this industry.

Keep reading as we explore growing trends affecting the trucking industry throughout 2022.

DEVELOPMENT OF TECHNOLOGY

Technology development has caused widespread improvements in several industries, and the trucking industry is not an exception. Trucking companies are beginning to employ several software programs to help make their operations more efficient and streamlined. Trucks are now equipped with better technology to improve functionality.

These technologies make it easier to track trucks in real-time and empower trucking companies to create streamlined routing. Additionally, AI and machine learning create intelligent predictions, allowing them to make proactive decisions. These changes are likely to increase, and trucking companies will respond better to what it brings.

GROWING FUEL COST

Over the years, fuel costs have steadily risen after hitting low in the pandemic in early 2020. These have impacted the trucking industry and pushed freight rates higher. Fuel costs have always been a significant percentage of overall operating expenses for every trucking company. Additionally, the fuel industry is constantly undergoing fluctuations in market prices due to supply and demand. Today, many trucking companies are opting for other alternatives. These include electric trucks and many more to cut their daily costs. But they need to invest, which is an expense many trucking companies currently cannot incur. However, if the fuel industry experiences a positive growth rate, fuel prices can return to where they were before the decline began.

HIGHER NUMBER OF MERGERS

Many trucking companies went out of business due to pandemics, poor management, and operating administration. And many of them are choosing to go down the alternative route by merging with other companies. According to statistics, others are likely to move in this direction in 2022 if the market does not improve.

Some are merging with existing trucking companies to pool their resources together to withstand the market. Others are uniting with companies from other sectors to expand the range of services they can provide. These allow them to continue their operations and expand to newer territories. It will also help them stay afloat until the market is favorable. Additionally, it adds new efficiencies and eliminates inefficiencies throughout the industry.

INFLUENCE OF URBANIZATION

The growth of urbanization is one of the developments the trucking industry benefited from over the past years. Rural areas are experiencing wide-scale development into urban landscapes, making it easier for trucks to travel through paths they could not. These have widened trucking companies’ customer base and helped them generate more business.

SUBSTANTIAL GROWTH WITH E-COMMERCE INFLUENCE

The e-commerce industry has grown tremendously after the pandemic. Many people prefer to order online from the comfort of their homes instead of visiting a store or showroom. These have made this industry bloom and have helped it become one of the most successful. However, the industry cannot function without the help of the trucking industry. They depend on truckers to get their goods from one place to another. Therefore, the continuous growth in the e-commerce industry is also improving the trucking industry.

With this growth comes both opportunity and challenges. Trucking companies will have ample ability to expand their services. But they will face high fuel costs, a strained supply of fleets, and driver shortages. To deal with the situation, they must be willing to be innovative in their approach to increasing hauls while addressing ongoing supply chain issues.

DRIVER SHORTAGE

The trucking industry has struggled with driver shortages for many years. Many older drivers are retiring without replacement. The hiring pool for specialized drivers is dwindling, and many drivers now prioritize quick, thorough, and well-paid carriers. The lack of better pay and long hours on the road every time is now discouraging as many drivers miss spending valuable time with their friends and family. The job also has a high risk of accidents and strict regulations.

HIGHER FREIGHT VOLUME

The demand for trucking services is not likely to slow down anytime soon. According to reports from the American Trucking Association, the national trucking freight volume has increased by more than 60% in 2022. Industry revenue and efficiency have also increased due to new technologies.

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THE CAUSES OF TRUCK DRIVER SHORTAGE IN THE UNITED STATES

May 31, 2022 0truck businessTrucking

Over the past decade, the trucking industry in the United States has struggled with the shortage of driers. These have affected the entire economy, as more than 60% of all freight is moved on United States highways. It has also affected the supplier costs, consumer pricing, increased shipping delays, and shortages at stores.

The trucking industry has emerged as one of the most acute bottlenecks in a supply chain that has unraveled amid the pandemic. The lockdowns made it difficult for new drivers to access commercial-trucking schools and get licensed. These have worsened supply shortages across industries, further fanning inflation and threatening a broader economic recovery.

Drivers’ shortage across the United States has become so severe that many trucking companies are now trying to bring in drivers from abroad like seemingly never before. The industry has been grappling with a chronic lack of drivers for years. But the pandemic made it worse as demand for shipped goods soared.

WHAT IS DRIVER SHORTAGE?

Driver shortage indicates the shortage of qualified professional truck drivers. Truck drivers are leaving the industry and searching for jobs that offer better pay, benefits, and working conditions. According to reports, many of them are not satisfied with the lifestyle it provides. Continue reading as we will discuss the factors affecting the shortage of truck drivers in the trucking industry and what the industry can do to fix the problem.

THE CAUSES OF DRIVER SHORTAGE

INCREASE IN DRIVER TURNOVER

One of the main contributions to the astounding rate of driver shortage in the United States is the turnover rate. According to research, many potential drivers are interested in having a career in truck driving. But they often abandon the idea when they discover the lack of respect, poor working conditions, and the job demand.

LOW DRIVER WAGES

There was a time when truck drivers made decent money for their hard work, but an increase in the cost of living has changed everything. The wages of many truck drivers do not match their cost of living. The wags of some trucking companies are also no longer worth the sacrifices the drivers make for the job, making the drivers feel underappreciated and underpaid. These make them leave their jobs to look for something that offers better pay, benefits, and working conditions.

DEMOGRAPHIC PROBLEM

One of the most extensive issues influencing the driver shortage is the demographic of the current workforce. These include age and gender. According to statistics, the average age of a commercial truck driver in the United States is 55 years old. These drivers will be retiring within the next 10-20 years, and there are not enough young drivers to fill the gap, putting the industry on a dangerous cliff.

The Federal requirement to hold an Interstate Commercial Divers License has also left three years post-high school gap, where possible employees become distracted by new employment opportunities. These have contributed significantly to the shortage experienced today.

Another significant demographic issue is stereotyping truck driving as a macho job for macho men has also worsened the situation. According to statistics, women makeup 47% of the nation’s workforce but only account for 6% of commercial truck drivers. Therefore, convincing women that they are welcome and needed in the truck driver career pool can bridge the gap.

TRUCK DRIVERS’ LIFESTYLE

The lifestyle of a truck driver is not ideal and steers people away from even considering a career as a truck driver. They live on the road for days, spending a lot of time away from their homes, loved ones, and friends. Being on the road non-stop also limits their nutritional options. Their high-calorie, high sugar diet can lead to health problems such as diabetes, high blood pressure, and digestive issues.

Sleep deprivation is another chronic problem faced by truck drivers. The pressure to get to their destination quickly makes them skip sleep breaks. These lead to mental fogginess, poor judgment, and forgetfulness, making them more prone to accidents. These lifestyles with poor wages make many drivers walk away and look for a new career.

HIGH LEVEL OF RISK

Truck driving is a risky profession, and truck drivers face more difficulties than smaller vehicles. They must be alert and know how to handle their trucks. They drive for long hours to make deadlines on bad roads and weather. Some drivers also haul hazardous chemicals and other dangerous substances. All these put drivers and their health in risky situations.

INCREASE IN TRUCKING REGULATION

The United States Department of Motor Vehicles and the Federal Motor Carrier Safety Administration imposes regulations on the trucking industry. Changes like stricter anti-drug enforcement, drug and alcohol testing, state-to-state rules, and proposed changes to working hours for drivers have contributed to a shrink in driver capacity. It also has significant impacts on the trucking capacity.

PANDEMIC PROBLEM

The trucking industry in the United States has felt the effects of global disruption with the pandemic. The lockdowns and restrictions made many drivers stay home with financial support from stimulus payments. It also caused partial or complete closures of many driving schools and testing facilities, leading to a backlog in getting new drivers qualified. Additionally, a surge in demand due to the pandemic is also causing a ripple effect in the trucking industry.

THE BOTTOM LINE 

The trucking industry has been grappling with a chronic lack of drivers because of the pandemic. It also raises the demand for shipped goods. The consequences have also been dire and far-reaching.

Global Multi Services is a truck permit provider that operates across the United States. We have the expertise you need for all your trucking permits and license needs. Contact us for your truck permits and license.

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WHY IS THE TRUCKING INDUSTRY AND TRUCK PERMIT IMPORTANT IN THE UNITED STATES?

May 18, 2022 0PermitsTrucking

The trucking industry moves goods across overland routes in the United States. They deliver freight from rail yards, ports, and airports to their final destinations. They also have a market worth $732.3 billion and allow flexibility in delivery times.

The trucking industry is the most reliable and more affordable than other means of transportation. They are a vital pillar of the economy of the United States. Also, every sector of the American economy relies on the trucking industry to function daily. Additionally, they provide massive job opportunities to the country and are responsible for employing approximately seven million people, half of whom are truck drivers.

Trucking companies need truck permits and other documents before operating intrastate or interstate. These laws are put in place to regulate the trucking industry and protect the country’s roads. Also, it avoids accidents and ensures truck drivers adhere to government regulations. But the processing of these permits can be a hassle and takes some time.

Global Multi Services have the legal experience and expertise to get a truck permit for your hassle-free. Continue reading as we discuss the importance of the trucking industry and truck permits.

IMPORTANCE OF THE TRUCKING INDUSTRY

SHIPMENT OF GOODS 

Goods travel on trucks at one point or another before reaching their final destination. Many companies and business owners also depend on domestic shipments to run their businesses, and trucks haul about 70% of all domestic shipments. Therefore, the trucking industry enables businesses to transport their products across the country. They also allow them to get the raw materials and the supplies they need to continue running their companies. These add up to about $140 billion in goods shipped by motor carriers per year. These goods include agricultural products, furniture, stone and minerals, vehicles, wood, textiles, leathers, coal, petroleum, etc.

EMPLOYMENT OPPORTUNITY

The trucking industry provides employment opportunities for many people in the country. According to reports, more than 700,000 truck drivers are employed in the United States and earn about 30 billion dollars every year. Hence, the industry invests a lot of money in the country’s economy. The trucking industry supports consumers and businesses by transporting raw materials and finished products all over the country to be purchased by everyone.

Being a truck driver can get lonely, but they are vital to the country. They pull massive loads and cannot even see behind them for the most part. They also spend several days all alone in their trucks. Some truck drivers spend days and weeks away from their families, which can be difficult.

BOOST THE ECONOMY

A country’s economy relies on consumers buying goods and services, and the trucking industry adds a lot to the American economy. In a country as large as the United States, product transportation is everything we could ever need to ensure every citizen gets what they need. The trucking industry is pretty much responsible for everything the citizen buys. The product can get there in a semi-truck or shipped as raw materials in a truck to where they assembled the product.

Most states in the United States have land areas. So, boats cannot be used for everything, and flying goods and raw materials are expensive. Therefore, truck driving is our only option.

The trucking industry adds a lot to the American economy. Trucks are responsible for about 84% of the entire revenue of the whole transportation industry. It brings in more than $500 billion in revenue each year. These contributions to the gross income of the country and boost its economy.

IMPORTANCE OF TRUCK PERMIT

COMPLIANCE TO LAW

The Department of Transportation and the Federal Motor Carrier Safety Administration set many regulations to ensure the trucking industry adheres to safety rules. Hence, it is vital to know the requirements and necessary procedures to comply with the laws. Running a trucking company is already challenging, and getting penalized for not adhering to the law can affect your business reputation.

AVOID ACCIDENTS

Aside from permits necessary to travel from one state to another, safety rules are put in place to protect other vehicles and road users. Trucking companies must do pre-inspections on their truck to ensure it is in good working condition before hitting the road. These show all the truck parts are working perfectly and will not cause any havoc on the road. They must do drug and alcohol tests for their drivers and other employees in the country.

WIDE RANGE DELIVERY

Truck permits allow motor carriers to operate across the United States. These include IRP Plate, Motor Carrie permit, MC Authority IFTA, etc.

The International Registration Plan is an agreement between the 48 contiguous states of the United States and the Canadian province. The plate facilitates apportioned fee collection from motor carriers traveling across two or more states.

The International Fuel Tax Agreement maintains the concept of using a single fuel license for interstate carriers. Qualified motor carriers must register and obtain an IFTA permit and file IFTA Fuel Tax Returns in their base jurisdiction.

THE BOTTOM LINE

Trucking is a profession that provides plenty of opportunities for work, growth, and freedom. According to reports, the number of truck drivers is steadily rising. But it is not enough to keep up with the current demands of the economy. With demands higher than ever, it is an opportune time to pursue a career in truck driving. The trucking industry supports the citizens and is the backbone of the country. Therefore, becoming a truck driver means you are supporting a healthy economy.

GLOBAL MULTI-SERVICES HAVE WHAT IT TAKES

Registering your trucking business to get MC Authority is stress-free when you find the right company with the experience to help you in assisting your needs. Global Multi services have the expertise you need. Contact us today for all your trucking permits and authority

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