The trucking industry is an essential part of any global supply chain. We need trucks for moving goods across vast distances and keeping the economy alive. However, challenges facing the commercial trucking industry today, jeopardize the industry’s efficiency, profitability, and long-term sustainability.
From rising fuel costs and stringent regulations to driver shortages and the pressures of technological adaptation, trucking companies must navigate a complex landscape to stay competitive.
Let’s explore some of the major challenges and look at how trucking companies and truck drivers can overcome them.
8 Top Challenges Facing Today’s Trucking Industry
Trucking companies around the world are confronting similar major challenges. Regardless of your specific role within the trucking industry, you’ve likely encountered at least one of these issues.
1. Shortage of Drivers
The trucking industry is struggling with a severe shortage of new truck drivers, a problem that has been escalating over the years.
The American Trucking Associations estimate a shortfall of over 80,000 drivers, with signs that this number could double by 2030.
Driver shortages come down to these three primary factors:
- Aging workforce: The average age of a truck driver in the US is 49 years old, and many are approaching retirement. The industry has struggled to attract younger workers, who often seek careers with a better work-life balance.
- Lifestyle challenges: Truck driving is a demanding job that requires long hours on the road, extended periods away from home, and irregular schedules.
- Regulatory pressures: Increasing regulations, such as stricter hours of service (HOS) rules, add to the complexity of the job, pushing some drivers to leave the industry. These demands can also deter people from pursuing a career in trucking.
2. Driver Retention
Retaining drivers seems to be as challenging as attracting them.
The high turnover rate in the trucking industry makes the driver shortage even worse, leading to a cycle of constant recruitment and training.
To improve retention, trucking companies must focus on creating a more supportive and rewarding work environment. This should include better pay, better working conditions, health benefits, and opportunities for career advancement.
People should also understand the benefits of working as an owner-operator in the trucking industry, as this leads to a longer-term commitment to trucking.
3. Operational Costs
One of the biggest issues facing the trucking industry is the cost of operating a trucking business.
Operational costs in the trucking industry are continually rising, putting pressure on profit margins. These costs include fuel prices, insurance, maintenance, and compliance with regulations.
Managing operational costs effectively is crucial for maintaining profitability in a highly competitive market.
4. Adapting to the Energy Transition
The trucking industry is under increasing pressure to reduce its environmental impact.
With stricter emissions regulations and the growing demand for sustainable transport, companies must transition from diesel to cleaner energy sources. While sustainable practices have clear benefits, they also come with significant challenges for trucking companies.
Investing in alternative fuel vehicles, such as electric or hydrogen-powered trucks, requires significant capital. Many companies, especially smaller ones, are hesitant to make this investment without clear long-term benefits and an established infrastructure.
The infrastructure for alternative fuels, particularly electric charging stations and hydrogen refueling stations, is also underdeveloped. This limits the operational range of these vehicles and adds uncertainty over how businesses can adopt them.
5. Truck Parking and Infrastructure
Truck parking has been a persistent issue in the industry, and it’s getting worse.
The shortage of safe and secure parking spots forces drivers to park in unsafe locations, increasing the risk of cargo theft and putting drivers in potentially dangerous situations.
This issue can also lead to violations of federal hours of service (HOS) rules when drivers can’t find legal parking spots within their time limits.
In the US, there is only one parking spot available for every 11 trucks on the road, making it extremely difficult for drivers to find a place to rest. The problem is even worse in urban areas and along major freight corridors.
6. Scheduling Delays (Detention Delay)
Detention delays, when drivers are forced to wait at loading or unloading facilities, are a major pain point in the trucking industry.
These delays cost drivers valuable time, reducing their earning potential and leading to plenty of unhappiness in the industry. The problem worsens with staffing shortages at many shipping and receiving facilities, leading to longer wait times.
Most truck drivers are paid by the mile or the load, so time spent waiting is time they’re not earning. This is another aspect that adds to high turnover rates in the industry.
Delays at loading docks can also affect operational efficiency by throwing off carefully planned schedules. This leads to late deliveries and missed deadlines.
This inefficiency can ripple through the entire supply chain, affecting not just the trucking company but its customers and end consumers.
7. Compliance, Safety, Accountability (CSA)
The Compliance, Safety, Accountability (CSA) program is a regulatory framework designed to improve safety in the trucking industry. While its goals are important, navigating the complexities of CSA compliance can be challenging for trucking companies.
CSA covers a wide range of regulations, from vehicle maintenance and driver qualifications to hours of service and environmental standards. Keeping up with these regulations requires ongoing investment in training, technology, and sometimes new equipment.
Non-compliance with CSA regulations can result in severe penalties, including fines, increased insurance premiums, and even the suspension of your operating license. This makes it critical for companies to stay informed and stick to all applicable rules.
CSA scores are also used to assess a company’s safety performance. Poor scores can lead to increased scrutiny from regulators, higher insurance costs, and damage to a company’s reputation, making it harder to attract business.
To manage CSA compliance effectively, trucking companies need to invest in regular training for drivers and staff. Implementing robust safety programs and using the right technology to monitor and ensure compliance is also important – all things that can make operating a trucking company more difficult.
8. Equipment Maintenance and Supply Chain Disruptions
Maintaining a fleet of trucks is a constant challenge, particularly in an environment where supply chain disruptions have made it harder to obtain parts and equipment.
Ongoing global supply chain issues cause delays in obtaining parts, making it difficult to keep trucks on the road. Even minor repairs can become major downtime if parts aren’t readily available.
Many companies have also been forced to keep older trucks on the road longer than planned because of the difficulty in obtaining new vehicles. Older trucks require more frequent maintenance, which increases costs and the risk of breakdowns.
Final Thoughts
Running a trucking operation is demanding in today’s climate. However, while there are plenty of challenges facing the trucking industry, there are also solutions to all of them. Being aware of these challenges and knowing how to overcome them is key to long-term trucking success.
One of the most effective ways to overcome the challenges truck drivers face is by being an owner-operator with a reliable vehicle. Get in touch with us at Mission Financial Services if you’re considering investing in your own truck. We make it easy for all truck drivers to access the financing they need for their ideal vehicle.
