Office: (404) 975-4800

News

Where is the Best Place to Work as a Truck Driver?

What to Consider when Choosing Your Destination

Truck drivers are some of the country’s top earners and for a good reason. They work tirelessly to keep our world turning and our economy thriving. So it’s no surprise that a truck driver’s salary is competitive compared to other industries. On average, a truck driver can earn anywhere between $40,000 and $78,000 per year. But, did you know there are some states where the money for trucking is even better? However, you must be careful when deciding on where to go. In some states, the cost of living and state regulations could significantly impact the amount of money you actually make. 

Like any profession, each state offers different pros and cons. For instance, while one state may see a higher average annual pay, other factors like natural resources and geographic proximity could impact that number, ultimately making you less than the supposed average. That’s why it’s crucial to weigh all factors carefully before deciding where to reside as a truck driver.

The main factors to consider include:

1. The Cost of Living 

In most industries, the average pay varies from state to state, and, in some cases, the pay doesn’t always correspond to the cost of living within said state. Most of the time, a truck driver’s income is based on the specific route they drive, the type of freight they’re hauling, the difficulty of the job, and the company’s standards. But unfortunately, most companies don’t factor the cost of living into their wages. So, if you choose a state with a lower cost of living, your paychecks will go further.

2. Income Taxes

You must also consider the state’s income tax rates. If you want more take-home pay, you’ll want to choose a state with a lower income tax rate. As of 2020, only seven states offer no personal income tax, including Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. With these rules and regulations constantly changing, it’s wise to seek advice from a tax professional before deciding on a new job in a new state.

3. Quality of Life

While pay is a crucial factor when choosing your career and the location you’d like to work in, it should ultimately come second to the quality of life. For instance, some states offer better roads and highways, safer public rest areas and truck stops, and cheaper parking. These factors not only make your job easier, but they can help to reduce out-of-pocket costs and stress. You’ll also want to look into your state’s crime area to ensure the safety of your home and neighborhood.

4. State Regulations

Like pay, industry regulations can vary from state to state, and these regulations can impact trucking companies and drivers. And if the trucking company is on the smaller side, they could have trouble adapting due to limited resources. Unfortunately, if the company doesn’t have access to things like new equipment and personnel, these regulations could come at a high cost. If these added costs are passed on to the customers, you could see reduced pay.

5. Geography and Natural Resources

You should also consider the type of freight you’ll be hauling, the population, the geographic location, proximity to other states, international borders, and shipping ports when choosing a state to work in. You’ll also want to determine what natural resources the state you’re considering is known for since there’s a good chance you will be hauling it at some point or another.

6. Freight Volume

As previously mentioned, you’ll want to consider the amount of freight you’ll be hauling across states. The amount of cargo you handle often affects the pay you’ll receive per job. The states with the most freight being moved include Texas, California, Illinois, and Ohio.

The type of freight is also necessary to note, as it can also determine how much money you could be making.  

  • Top states for flatbed hauls: Alabama, Texas, Arkansas, Georgia, and Mississippi
  • Top states for refrigerated loads: Texas, California, Illinois, Ohio, and Georgia
  • Top states for van loads: Texas, Illinois, Ohio, California, and Georgia

What are the best states for truck drivers?

Ready to find new territory? Make sure you get the most up-to-date information before deciding where to land. 

Here are the top five states to work in as a truck driver:

STATETOTAL JOBSAVERAGE SALARYHIGH/LOW
Kentucky6,466$72,287$107,000/$48,000
Indiana9,598$71,429$105,000/$48,000
Ohio15,146$70,880$105,000/$47,000
Pennsylvania14,369$71,491$106,000/$47,000
Delaware1,484$71,947$107,000/$48,000

More Like This:

-> Top 10 Truck Driving Jobs

-> Top-Selling Transportation Equipment in the U.S.

->10 Best Supply Chain Jobs in America

Demand for Truckers Dwindles: Recession on the Rise?

The demand for trucking has taken a shocking turn. According to Bank of America, shipping demand is “near freight recession levels,” and the prospects surrounding freight capacity, inventory levels, and shipper rates are moving in a similar direction as they were in the Summer of 2020, at the height of the COVID-19 lockdown. 

The managing director of Bank of America, Ken Hoexter, said in a recent investor’s note that a survey found that the demand for trucking is down 23% year-over-year (y/y), and the Truckload Demand Indicator fell to ‘58’— the lowest it’s been since June 2020. 

So, what does all of this mean for the future economy? This article will break down what led to this decline in demand and what we can expect to see in the future.

The demand for trucking: Then vs. now

The need for trucking has, for the most part, been a significant pillar in the foundation of our country. Now, as the demand for trucking is slowly dwindling, industry experts wonder what the future holds for the trucking industry.

In the Cass Freight Index, the demand for domestic shipping increased 0.6% in March from the prior year (2021); the percentage is also a 2.7% increase from February. At the end of this year’s first quarter, the creeping growth rate shows Cass Information Systems Inc. that the freight industry is clearly slowing down. 

The trucking industry recently experienced historical highs when it comes to freight rates, but those numbers seem to be decreasing as shipping demand and available capacity reach an equilibrium. For example, according to Bank of America, dry van spot rates (excluding fuel surcharges) are down 27% in the past month and 37% since December 2021. The analysis from Bank of America also shows that shipping rates have dropped to their lowest point since July 2020.

Why is the demand for trucking declining?

Over the years, the trucking industry has proven to be a reliable gauge for the U.S. economy’s prosperity or lack thereof. It’s simple math, really—when consumer spending declines, companies purchase less, and, as a result, business in the trucking industry dwindles. 

Since 1972, the trucking industry has faced 12 industry recessions, out of which six led to larger economic issues. Now, as the Federal Reserve attempts to diminish inflation, there are growing concerns surrounding another recession that would impact both the trucking industry and the overall economy. 

Cass Freight Index Report

These concerns led policymakers to raise shipping rates by a quarter-percentage point and promise half-point increases starting in May. This increase has caused freight volumes to slow. Since March, the Cass Freight Index shows shipment components are up 0.6% y/y, but this is significantly less than the 3.6% y/y growth the industry saw in February.

Other shipment component stats include:

  • Although the shipments component rose 2.7% from February, the overall seasonal pattern was still 1.0% lower.
  • If the Cass Freight Index used a normal seasonal pattern from March to predict shipment components for April and May, we would see an approximate 3% y/y increase in April and a 3% y/y decrease in May. 
  • The year-over-year shipment growth decreased to 0.4% in the first quarter of 2022 from 4.3% growth in the fourth quarter of 2021.
Image Credit: cassinfo.com

The changes to shipping rates have Wall Street traders predicting a 100% chance of a half-point rate increase at the beginning of May. If they are correct, this increase would be the first time the U.S. central bank has raised federal funds by 50 basis points since 2000. 

While some economists believe the actions of the Federal Reserve are too late, others are concerned that stabilizing prices too quickly could trigger a wide economic recession since higher interest rates force consumers and businesses to reduce their spending.

What could this mean for the economy?

Since Class 8 vehicles move around 72% of all freight, and approximately 2 million Americans work as truck drivers, a recessionary period could be detrimental. 

Suppose industries such as retail, housing, and lumber predict needing fewer heavy-duty trucks for shipping. In that case, the trucking industry would be plunged into a recession. This downturn could lead to many businesses going bankrupt, thousands of people across affected industries losing their jobs, and American families severely disrupted. Thus, leading to a nationwide economic crisis.

More Like This:

→ How to Retain Your Top Drivers During a Shortage

→ How the Russia-Ukraine Conflict Affects the Supply Chain

→ Long-Term Effects of the Pandemic on the Transportation Industry

How Drivers Can Avoid Drug and Alcohol Violations

In 2020, the Federal Motor Carrier Safety Administration (FMCSA) proposed regulations that would require state agencies to block drivers with any drug and/or alcohol violations from renewing or upgrading their commercial driver’s licenses or permits. The proposed regulations would also prevent new drivers from being issued licenses or permits. In some cases, the new rules would grant agencies the authority to downgrade a driver’s license or permit within 60 days of receiving a drug and/or alcohol violation. 

Today, a new regulation requires states to ban drivers with violations from operating commercial vehicles until the driver completes a return-to-duty process. These regulations were deemed ‘The Drug and Alcohol Clearinghouse.’ 

From their start in January 2020 to the end of March 2021, states saw an astonishing 69,100 total drug violations and 1,552 alcohol violations. In the first three months of 2021 alone, there were 14,324 drug violations and 367 alcohol violations reported, and experts anticipate these numbers to grow with each passing year.

While the FMCSA’s Clearinghouse aims to safeguard our nation’s roadways from potentially dangerous truck drivers, some drivers fall victim to violations simply because they don’t know the new laws and regulations.

Drug and alcohol violations are on the rise

As expected, reported violations saw a 10.2% increase from 2020 to 2021. In 2021, the nation’s total number of drug violations was particularly shocking, with a total of 58,215 reported.

The Drug and Alcohol Clearinghouse broke that number down even further and found:

  • 31,085 violations involving marijuana
  • 8,765 violations involving cocaine
  • 5,082 violations involving methamphetamine

In terms of alcohol violations, the Clearinghouse saw a 26.74% increase from 2020. 

Overall, the Clearinghouse found 104,840 truck drivers with at least one violation since its start in 2020. 81,052 of the drivers are still prohibited from resuming operations, and, as of January 2022, only 13,050 of them have completed the requirements for return-to-duty eligibility.

In recent years, the FMCSA has vowed to double the number of random drug tests administered. This decree requires carriers to perform random drug tests on all of their drivers, including any contracted owner-operators. While this demand was labeled as a temporary statute, it will most likely be re-instituted again and again. The FMCSA is required by federal law to increase random drug testing by 50% if the rate of positive drug tests passes the 1% threshold. This change could cost up to $70 million for approximately 2.1 million drug tests.

6 drug and alcohol traps and how drivers can avoid them

On more than one occasion, truck drivers have violated regulations concerning drugs and alcohol because they don’t know or fully understand the law. 

Trucking professionals have found six common traps to watch for, including:

1) Sleeping/Resting in the sleeper cab after consuming alcohol.

According to the safety regulation 49 C.F.R. § 392.5, a driver is not allowed to have any alcohol in his/her/their system while having “physical control” of a commercial vehicle. The general definition of physical control is: to have immediate access to the keys and your vehicle in close proximity to you. However, the exact points of what qualifies as “physical control” are not fully specified within the regulation.  

Since the fine points of “physical control” are not defined, it is better to play on the safe side and avoid alcohol consumption while on the road. The regulation also applies when taking a 34-hour restart. So, suppose you decide to consume alcohol while you’re at home or in a lodge. In that case, we recommend storing your keys in a safe location to avoid being considered “in physical control” of your commercial vehicle.

2) Failure to proceed to a testing site immediately after testing notification.

The regulation 49 C.F.R. § 382.305 orders drivers to go to a test site immediately after receiving notice of their selection for random testing.

It is imperative to do precisely that in order to avoid receiving a violation. For example, suppose you are in the process of completing a non-driving, safety-sensitive task or function (e.g., unloading a trailer). In that case, you and your fleet manager (or someone with authority) are obligated to stop your task and ensure that you reach the designated testing site promptly. A few contingencies would not be subject to violation, but you will need to review the FMCSA’s regulations to determine them.

3) Failure to report to testing while off duty.

In reference to regulation 49 C.F.R. § 382.305, the same rules apply to drivers off duty. According to the FMCSA, drivers are subject to random drug testing while at home or on vacation. If you are selected for random testing, you must immediately proceed to the designated testing site.

Regarding random alcohol testing, the regulation does not state or require drivers to submit to testing while off duty.

4) Failure to respond to a medical review official.

A medical review officer is responsible for confirming a positive drug test that has been received from a designated laboratory. To complete the confirmation, the M.R.O. must contact the driver-in-question’s employer and ask that they notify the driver to contact the M.R.O. to discuss test results promptly. This is an opportunity for the driver to offer an explanation for the positive test results or to retrieve fax or email information to forward a copy of a prescription to the M.R.O.

5) Using medication that is prescribed to someone else.

In the event a driver tests positive for specific drugs, they would automatically be banned from operating a commercial vehicle until they follow subsequent protocol. In regards to controlled substances that are only made available by prescription from a licensed medical professional, a positive test is deemed okay. However, if a driver tests positive for a controlled substance but does not have a prescription for that substance or the prescription is expired, then they are subject to violation.

6) Legal marijuana use.

If you test positive for marijuana in a random DOT-mandated test, you will immediately be banned from professionally operating a commercial vehicle until you complete subsequent protocol. This rule also applies to legal marijuana usage and/or consumption since state laws do not have the power to overrule or void drug testing results under the FMCSA’s regulations.

Treatment resources every driver should know

If you or someone you know is struggling to overcome addiction, consider treatment through an inpatient or outpatient program.

American Addiction Treatment Centers by State

For free, confidential treatment referrals and information services any time, anywhere, visit SAMHSA’s website or call their National Helpline at 1-800-662-HELP (4357).

More like this:

→ What You Need to Know About the Drug and Alcohol Clearinghouse

→ The Dangers of Distracted Driving: How You Can Help

→ Older Drivers: How to Stay Safe Behind the Wheel

How the Truck Parking Crisis Affects Us All

Picture this: It’s Monday morning, and you’re driving to your workplace. You arrive, only to discover that there are no more available parking spaces. Now what? Do you circle the lot hoping someone will leave and risk being late to work? Do you park in a ‘No Parking’ zone and risk being ticketed or towed?

This scenario is one that many truck drivers face on a daily basis. In fact, truck parking was the fifth largest concern in the American Transportation Research Institute’s (ATRI) 2021 Top Industry Issues poll. The persistent problem has been introduced to legislation over the years, yet there haven’t been many solutions offered to the industry.

The American Trucking Associations (ATA) and the Owner-Operator Independent Drivers Association (OOIDA) recently came together to pressure government agencies to prioritize fixing the parking crisis. The groups explained that the nationwide issue has been a decades-long battle that has affected driver safety, the supply chain, and carriers. In this blog, we’ll break down the top three issues caused by the parking shortage and offer ways truck drivers can combat the problem on their own.

Top 3 issues caused by the parking shortage

The increased shipping demand brought on by the COVID-19 pandemic has led to more trucks on the ground than ever before. The ATA and the OOIDA found that there are approximately 3.5 million truck drivers on the road and only 313,000 parking spaces available nationwide. This shortage has caused three common issues shared by truck drivers.

These issues include:

Safety Concerns

In 2019, a study found that 98% of truck drivers experience difficulty finding safe parking—this is an overwhelming 23% increase from a 2015 report. Trucking organizations have expressed concern for driver safety and well-being, stating: “When drivers are unable to find safe, authorized parking, they are stuck in a no-win situation, forced to either park in unsafe or illegal locations, or violate federal HOS regulations by continuing to search for safer, legal alternatives.”

In a recent letter to the U.S. Department of Transportation, the ATA and OOIDA said 70% of drivers have violated federal Hours of Service (HOS) rules due to limited parking options. With so few parking spots, drivers are frequently forced to park in unsafe and unauthorized locations, including highway shoulders, interstate entries, exit ramps, and abandoned properties. Parking in these locations poses safety risks to all motorists and makes 84% of truck drivers feel unsafe.

This parking shortage also impacts law enforcement officials. When drivers are illegally parked, police officers are faced with three options; they can 1) ignore the problem and risk getting in trouble with their superiors and jeopardize public safety. 2) ask them to relocate their rig, forcing drivers to violate HOS rules or potentially forcing fatigued drivers to risk public safety. 3) ticket the truck driver and cost hardworking individuals time and money.

The moral of the story: When truck parking is not readily available, everyone’s safety is compromised.

Time is money…

The phrase “time is money” has never been more true when it comes to truck driving. Each day, 98% of drivers struggle to find safe and legal parking and waste approximately 56 minutes of available driving time searching for it. This time spent hunting for truck parking can have profound economic impacts. According to a study done by ATRI, the 56 minutes of unproductive drive time equals around $4,600 in lost wages per year. Searching for parking also disrupts fleet productivity, which inevitably leads to supply chain issues and unhappy consumers.

…And money is time

As previously mentioned, law enforcement officers are allowed to ticket drivers of illegally parked semi-trucks. Parking violation fines vary in each state and city, but the total costs can wrack up after the initial fine compounds with potential court costs. And if the driver is ticketed multiple times, their license could be jeopardized. While this personally affects truck drivers, it also cuts into carriers’ profits and can potentially lead to a driver shortage, putting the carrier behind the competition. And if the officer asks the driver to relocate, the carrier could be exposed to fines and penalties from driver protection agencies.

So, the driver, carrier, and anyone else involved in the business feels the impact of the parking shortage.

What can drivers do to avoid parking issues?

While we can’t say for sure when the parking crisis will be resolved, we can prepare truck drivers with knowledge on how to avoid parking troubles.

4 Parking Tips for Drivers

  • Use apps, like Trucker Path. The app allows drivers to find parking on their route.
  • Plan your route from start to finish. It may also help to research all available parking along your route in case your ‘Plan A’ doesn’t work out.
  • Get an early start. Getting on the road before other drivers gives you the advantage when finding parking since your break time will be different from those who got a later start.
  • Avoid unsafe or illegal parking areas. Parking in designated truck parking areas will help keep you and other motorists safe.

More Like This:

→ Parking Shortage: An Unexpected Problem for Truckers

→ Top 10 States With the Best Roads and Highways

→ 5 Largest Infrastructure Projects Happening Now

The Dangers of Distracted Driving: How You Can Help

Tips for Avoiding Distracted Driving

It’s officially Distracted Driving Awareness Month. Throughout the month of April, different organizations unite to help drivers safely reach their destinations by encouraging them to remain focused behind the wheel. According to a recent study by the National Highway Transportation Administration (NHTSA), 3,142 people were fatally injured due to distracted driving. 

Distracted driving affects hundreds of people every single day. And what many people don’t know is how it can impact heavy-duty truck drivers. This Distracted Driving Awareness Month, we encourage you to put down your phone, follow the speed limit, and eliminate distractions. In this blog, we will tell you everything you need to know about distracted driving and tips on how to eliminate distractions from your daily commute.

Facts about distracted driving

While answering the phone, eating a quick snack, or jamming to your favorite song may seem harmless, they can have critical consequences when done behind the wheel. When studied, researchers found that reading a text message for five seconds while traveling at a speed of 55 mph is equivalent to driving the length of a football field with your eyes closed.

Need more reasons to eliminate distractions from your drivetime? 

Here are a few facts about distracted driving:

  • A 2020 study done by the NHTSA found that 7% of all fatal crashes in 2019 were caused by or related to distracted driving.
  • Another NHTSA study found that 8% of fatal crashes, 15% of injury crashes, and 14% of all police-reported traffic accidents were distraction-affected crashes. Overall, approximately 400,000 people were injured, and 2,841 people died.
  • The NHTSA reported that 1 out of every 5 people killed by a distracted driver was not in a vehicle (walking, jogging, biking, etc.) at the time of the accident.
  • The CDC found that drivers between 15 and 19 were more likely to drive distracted than drivers 20 years of age and older. And 9% of all teen drivers who died in vehicular accidents were involved in distraction-affected crashes.
  • According to the IIHS, the fatal crash rate is three times greater for teen drivers.
  • The AAA Foundation for Traffic Safety found that driver distraction is the cause of more than 58% of crashes involving teen drivers.
  • A research study from Cambridge Mobile Telematics showed that distracted driving habits occurred in more than 36% of all trips across the United States.

The risks are even higher when a truck driver is distracted at the wheel. In fact, “distracted truck driving is more likely to result in fatalities than other types of automotive accidents.” This is because the weight and force of heavy-duty vehicles are much greater than that of a standard passenger vehicle, making them more dangerous in the event of a collision. That is why truck drivers must do their part in eliminating distractions from their drive.

3 types of distracted driving

Over the years, experts in traffic safety have classified distractions into three main categories: Cognitive, Manual, and Visual. If you’ve ever been driving and started thinking about a conversation you had earlier that day or your mental to-do list, you’ve had a cognitive distraction. By definition, a cognitive distraction is when your thoughts distract you from the task of driving. A manual distraction is when you remove your hands from the steering wheel. For example, eating a sandwich or rummaging through your bag is considered a manual distraction. A visual distraction happens when your eyes are not on the road. For instance, if you apply makeup or search for something in your vehicle, you are driving while visually distracted. 

Using your phone while driving, including texting or reading messages, combines all three categories of distractions. The University of Utah found that those who use their phones while driving are 5.36 times more likely to get into an accident than undistracted drivers. The university also found that those who text and drive are comparable to people who drive with a blood-alcohol concentration of 0.08%. For truckers, texting while driving increases your risk of crashing by 23 times, according to Virginia Technical Transportation Institute.

Tips for avoiding distractions

Now that you have all the information about distracted driving, it’s time to help put an end to it. Putting a stop to distracted driving starts with you.

Here are some tips for remaining focused while driving:

  • Don’t eat and drive. Eating will take your hands off the steering wheel and your attention away from driving. If you’re traveling and want a quick bite to eat, find somewhere safe to park and enjoy your break from driving.
  • Put your phone away. Use ‘Do Not Disturb’ or ‘Driving Mode’ to disable incoming messages, calls, and notifications. Placing your phone in your bag or glove box will also help eliminate your temptation to use it. 
  • Just focus. Avoid multitasking by setting your GPS, picking out your music, and making calls or sending texts before you start driving.
  • Keep your music low. Loud music could prevent you from hearing emergency vehicles and CB warnings.
  • Properly secure your belongings. Items falling throughout the vehicle could distract you from the road ahead. Before you take off, secure loose objects and belongings properly.
  • Get plenty of rest. Being tired could cause you to be unalert or fall asleep behind the wheel.

Observe Distracted Driving Awareness Month

Observe Distracted Driving Awareness Month by:

  • Taking the pledge to end distracted driving.
  • Supporting campaigns developed by the National Highway Traffic Safety Administration and National Safety Council, as well as state, county, and local law enforcement agencies.

Using the hashtag #DistractedDrivingAwarenessMonth when posting on social media this month.

For more articles about driver safety, click here!

How the Russia-Ukraine Conflict Affects the Supply Chain

Throughout the past two years, supply chains have muscled through numerous challenges as the COVID-19 pandemic impacted industries all over the world. As Russia invades Ukraine, the world’s supply chains face more opposition. And while the problems are significant, new reports show they may worsen.

According to a Dun & Bradstreet report, 374,000 businesses worldwide use Russian suppliers, while approximately 241,000 businesses use Ukrainian suppliers. Out of all of those businesses, around 91.5% of them are based in the United States.

So how will this ongoing conflict continue to affect our supply chains? Which industries will be hit the hardest? And what can we anticipate going forward? We’ve got all the answers here.

What is the Russia-Ukraine Conflict?

On February 24, 2022, Russia initiated a full-scale military invasion of Ukraine. Since then, the death toll has reached well over 200, explosives have ravaged the country, and millions of Ukrainians have fled to neighboring countries. This growing conflict has spread well beyond Ukraine and thoroughly disrupted the world’s shipping and freight industries. 

Since the start of the invasion, Russian forces have caused shipping routes to be cut off, logistic firms to suspend services, and air freight rates to hit an all-time high. All of this has caused severe impacts on the global market, and many industries are feeling the overwhelming sting of this war.

Biggest impacts on the supply chain

The most affected industries include:

1. Fuel

At this point, we’ve all seen the astronomical prices at our local filling stations. As of March 11, the United State’s national average hit $4.33 per gallon, And in states like California, Hawaii, Nevada, and Oregon, people are paying more than $5 per gallon. These extreme prices have started to impact other parts of the economy as well. For instance, drive share and shipping companies have increased what they charge consumers to counteract fueling costs. Other industries that rely on fuel, like farming and construction, have also had to rethink their budgets, leading to higher prices at the grocery store and layoffs on job sites.

→ How the Gas Shortage has Affected the Trucking Industry

2. Raw Materials

Ukraine has slowly become one of the largest raw material suppliers in the world. They exported several materials, such as chemical products, minerals, transportation equipment, and other products. Since the invasion, Ukraine has been forced to increase the cost of its exports. This has caused many countries to slow down the manufacturing of electronics, homes, and vehicles. In some cases, companies have had to shut down production. Ukrainian allies have also ceased trade with Russia, thus losing access to large amounts of nickel, platinum, and 10% of the global copper reserves. These elements play essential roles in producing semiconductor chips, automobiles, jet engines, medicine, etc.

3. Shipping & Transportation

Another industry affected by the Russia-Ukraine conflict is shipping and transportation. Freight companies have started rerouting ground, ocean, and air shipping to avoid Russia and minimize fuel costs. This has led to longer transportation times and higher shipping costs for consumers.

For example, imports leaving Asia take approximately four hours longer to reach their destinations since the cargo jets can no longer fly over Russia. These jets use up to 20,000 pounds of fuel per hour of flight. And with fuel being more expensive, freight companies have no choice but to raise prices for consumers.

 4. Automotive

Since the start of the pandemic in 2020, the automotive industry has struggled with production and inventory shortages. Unfortunately, these troubles don’t seem to be subsiding anytime soon. The sudden increase in the price of fuel, steel, aluminum, and nickel has placed further pressure on the already fragile industry. The more expensive materials force automobile and automotive part manufacturers to slow down or cease production until prices stabilize. Meaning consumers will also continue to experience low inventory levels.

What can we expect moving forward?

As the conflict in Ukraine continues, trucking rates and other transportation costs could continue to increase as the price of oil rises. However, the overall outcome of this invasion is filled with a lot of uncertainty. For this reason, supply chains must prepare and improve their operations by “balancing investments in dedicated teams, processes, and technologies that will enable their organizations to implement end-to-end risk management,” says an analyst from Gartner.

More Like This:

→ How is the Microchip Shortage Affecting Truck Prices in 2022?

→ Where Did All of the Trucks Go?

→ How will the Trade War Between China and the U.S. Impact the Trucking Industry?

Archives

Sign Me Up!

Stay up to date with the latest news in the commercial trucking industry.

Contact Us
close slider