10 Trucking Trends US – 2023 Update. What You Should Know
Note: This article’s statistics come from third-party sources and do not represent the opinions of this website.
Are you looking to have a career within the trucking industry? In this article, we offer exceptional insight into the US trucking industry. Being a truck-friendly country, the USA boasts of multiple expansions in this field, increasing the demand for trucks.
In the US, trucking has long been the primary transportation option for many businesses, especially global ones. Over the years, trucking has grown significantly due to the increase in trade and globalization.
The trucking industry is also going through many changes, and it is crucial to stay on top of the new trends. Here, we’ll look at some of the significant trucking trends in the US.
The 10 Trucking Trends in the US in 2023
1. Advancement of Technology
The advancement of technology has made the trucking industry safer, faster, and more productive. Technologies such as collision mitigation and electronic logging devices have made it easier for truckers to stay on course and log their hours accurately.
Trucking companies are also embracing newer technologies to make the workplace more efficient and less dangerous for their employees.
The future of trucking is dependent on the advancement of technology. These advancements can also be new trucks, advanced sensors, and autonomous driving technologies.
2. Influence of E-Commerce
The e-commerce sector has been growing fast, and it’s expected to continue growing in the next few years. The growth has resulted in an online shopping boom for the entire logistics industry. The demand for parcel carriers, warehouse facilities, and delivery services is rising.
As e-commerce continues to expand, it will likely have a significant impact on the trucking industry in the US. For example, more drivers will be needed to transport goods over long distances. It’s because more products will be sold online.
Also, many companies that don’t sell their goods online are now using third-party services to deliver orders. It means they are using more trucks to ship their goods.
3. Incorporating Data Analytics
Technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Advanced Analytics are developing fast. They’re creating new opportunities for fleet managers to utilize the data available about the trucking industry.
Fleet managers must be aware that they can gain a competitive advantage in cost savings and higher productivity. So, they need to incorporate these technologies into their business processes.
4. High Number of Mergers
The number of mergers between logistics providers and trucking companies in the US has risen steadily. The reasons for this trend are quite obvious. There’s increased competitiveness and the need to reduce costs.
Mergers create large companies. They also offer operational, financial, and logistical synergies. Additionally, these mergers lead to cost savings, increased revenue, and profit margins. Also, there’s improved service quality and client satisfaction.
5. A Shift in Production Locations
Due to globalization, there’s been a shift in the location of business production for years. The trend is bound to continue. This shift is not limited to manufacturing but extends to all aspects of the business, including supply chain management.
The impact on trucking isn’t only limited to the movement of finished goods from the production site back to the distribution hubs and other end-user locations. It also includes raw materials, intermediate components, and finished products from suppliers to production sites.
6. Rising Cost of Fuel
(SUPPLY CHAIN BRAIN)
The rising fuel cost will continue to be a primary factor affecting the trucking industry. Higher fuel prices mean higher transportation costs and increased expenses for truckers.
Truckers are also faced with rising costs of tires and insurance. The maintenance cost to keep their vehicles safe on the road is also rising. They are also facing additional expenses from stricter safety regulations that have been put in place in recent years.
As fuel prices continue to rise, these additional costs will add up. They’ll lead to higher food prices for consumers.
Urbanization has been going on for thousands of years, but it is becoming more rapid and widespread. It not only brings in a lot of opportunities but also leads to the emergence of new challenges.
The growth of urban centers has dramatically impacted the trucking industry. It’s still doing so. The growth of urban areas has brought manufacturing plants closer to customers. It has reduced shipping costs. Also, it has increased local traffic congestion and pollution.
Urbanization increases the demand for both freight and passenger transportation services. With more people moving into cities, there is a higher demand for freight transportation services from warehouses to retail outlets and manufacturing facilities to distribution centers.
8. Career Bankruptcy
Career bankruptcy refers to the employment status of individuals before they file for bankruptcy. Truck drivers are not an exception to career bankruptcy.
Some have problems paying their bills and other debts due to job and income-related factors. So, they’ll look for a better solution that can help them solve their financial problems faster without filing for bankruptcy.
This way, you can expect to see more truck drivers who will turn to debt settlement services. This is much easier than filing for bankruptcy.
9. Changes in Pricing
With the advent of the internet, cargo freight has become more transparent, thus, available for customers to negotiate. Besides, customers have now become direct players in the trucking industry.
As a result, carriers must compete with each other within their market. Also, they must compete with others across the country. This trend has made carriers to be more competitive in the rates and services they offer to their customers. The trucking industry is now becoming more customer-friendly due to this power shift.
Customers can now see how much drivers make per mile. Also, they will know the fuel cost and what their load or trailer weight limitations are. This transparency is forcing carriers to offer lower rates and better services to their customers. Carriers need to adapt fast to the changing standards of their customers if they want to stay competitive.
10. A Market Flip
A “market flip” is when a small business is transformed into a big enterprise. Amid the gloom of a recession and rising operational expenses, the US trucking industry experienced slow growth.
But there are positive signs of recovery and growth in the industry. The market has been stable over the years due to the ongoing shift from rail to road freight transportation. But this can change as we see a reversal in this trend in the coming few years.
Significance of the US Trucking Industry
The trucking industry is one of the largest business sectors in the United States. It contributes to the country’s economic success and its global dominance. Truck drivers have long been a vital component of the US economy. It’s because their work makes it possible for nearly all other businesses to operate.
The amount of goods and number of people that are carried by trucks is quite high for any industry to handle. But it becomes even more impressive when you look at how much time and money is saved through trucking compared to other methods, such as railroads.
Trucking keeps costs low for customers and businesses. The prices we pay for most goods at stores are lower because they don’t have to include what it would cost to ship them by airplane or train.
How a Career in the Trucking Industry Looks Like in the US
The trucking profession is growing fast. There are many reasons for this. One of them is the low cost of starting a trucking business and the high demand for truck drivers. Many people are attracted to this line of work because it does not require a college degree.
But some employers will prefer candidates who have at least completed high school. Trucking jobs can be found in every state, and there are even some opportunities for part-time truckers. A career in trucking can be rewarding in terms of income. On the fun side, truckers get the chance to see the country from coast to coast while on duty.
Future of the Trucking Industry in the US
Many factors will influence the future of trucking. One of the biggest factors is technology. The global economy is experiencing fast technological advancements in all areas of business.
Advancements in technology have been so fast that it has outpaced our legal and political systems’ ability to regulate it. It means that the regulatory environment concerning driverless trucks is largely in flux. Nevertheless, these types of vehicles have several advantages over human-driven trucks.
Soon, we are expected to see the rise of driverless trucks. But, it may take a few years for this technology to be fully implemented. Until that time, truck drivers will still have a job to do. With these new technologies in place, truck drivers will have more time off during their travels and will also be safer on the road.
Driverless trucks aren’t the only innovation that’s changing the industry. Shippers are paying more attention to environmental friendliness and sustainability. They’re implementing several practices, such as using recycled products in their packaging and alternative fuel in their vehicles.
Frequently Asked Questions about Trucking in the US
How much do trucking companies make in the US?
It’s no secret that trucking companies are currently struggling with a shortage of drivers. It’s causing many carriers to raise pay to recruit new drivers.
Truck drivers earn an average of $43,950 per year across all industries. It can vary depending on whether they drive local, regional, or long-distance routes.
Trucking companies are established to transport goods from one place to another and earn profit. Owner-operators in the United States are a crucial part of the trucking industry as they provide businesses with freight services.
Why is there a shortage of truck drivers in the United States?
The answer to that question is pretty obvious. Drivers leave their jobs for various reasons, the most common being early retirement. Health is another hot topic in the industry.
Trucking is arduous work and requires a lot of physical stamina as you sit for long hours behind the wheel. Truck drivers are generally home only for two days out of every seven. So, it is tough on family life.
The combination of long hours and being gone from home often has put huge stress on marriages and caused many truckers to end their careers early.
The other reason for this is that many truck drivers are aging out of the profession. The average age for a long-haul driver is 55 years old.
Why do truck drivers quit after some time?
Truck drivers quit because of the long hours and the stress of driving. Others may quit their job because they don’t get enough money. There are many expenses associated with the job. If you do not get enough money in your paycheck, you will think of quitting. The salary is not as much as expected.
Conclusion: US Trucking Trends
Trucking has been around for decades, and nothing is likely to change that. It’s an essential part of the American culture. Still, many changes have taken place in the past few years, and many more are still to come.
A few significant trends that will affect trucking in the coming years include crewless and electric trucks, autonomous vehicles, and a shift in freight carrying patterns.
This article has outlined a more concrete vision of the future of trucking in the US and how it’ll look. But you should note that these predictions are not set in stone. Indeed, the trucking industry is constantly changing, and there remains room for even greater technological innovations and other changes over the coming decade. The future is unknown. But one thing is for sure. It’s going to be an exciting time for truckers across the country.
Featured Image Credit: Pixabay