Nobody ever said trucking was just driving. There are a lot of pressures and challenges for small and medium-sized carriers. Here are the most pressing issues in the commercial trucking industry today.
1.) Department of Transportation (DOT) Regulations
The DOT regulates basically every aspect related to trucking from hours of serves, logbooks, and fuel emission requirements. Most of the rules are designed to make trucking safer, but they also create a lot of red tape and extra expenses for drivers and fleets.
2.) Cash Flow
Truckers may wait as long as 60 to 90 days to get paid by brokers and shippers. This extended cycle can drain a fleet’s cash flow and limit their growth. Accounts receivable financing or factoring, can turn fleets’ invoices into cash in less than a day, quickly building up their working capital.
3.) Retention of Drivers
There is a shortage of 48,000 truck drivers nationwide. Meanwhile, driver turnover rates are nearly 100%. In order to recruit and retain drivers, many fleets are boosting salaries, improving benefits, and offering performance bonuses.
4.) Driver Health
Truck drivers are twice as likely as other workers to be obese, have diabetes, and not have health insurance. Poor health also puts drivers at risk for hypertension, sleep apnea, and other disorders.
5.) Quality of Roads
According to Business Insider, the United States ranks sixteenth among developed countries for highway infrastructure. If there was more funding for roads and bridges, there would be fewer accidents, fewer delays, and more profits for truckers in the future.
Accidents and fatalities have increased in recent years as more trucks and other vehicles share the highways. Neither side is keen on sharing the interstates and highways. However, there is new “sensing” technology that helps trucks avoid collisions should help reduce the number of accidents in the coming years.
7.) Truck and Trailer Maintenance
Buying a truck and trailer is expensive, and it is often the first daunting purchase trucker make. To continue with the shelling out of cash, there are always costs to maintain the equipment. Truckers will need truck tires, truck lights, antennas, oil changes, etc. Although none of the maintenance costs are as expensive as the initial cost of the truck, it adds up.
8.) The Cost of Fuel
Fuel costs are another challenge that all truckers are facing each day, and one of the reasons is that the cost of fuel varies each year. No trucker can go without it, and it goes without saying that this is a problem truckers face annually.
Nobody said trucking was easy. Let us know what you think of or how you deal with these challenges.