Trucking News: 3 Trucking Industry Trends you Need to Know About

Share on

The trucking industry is constantly evolving, and it is essential for truckers and fleet managers to stay informed about the latest trends in order to adapt and succeed. One of the most significant challenges that the industry is facing is persistently high costs, including rising fuel prices, insurance rates, and other operational expenses. These costs have a direct impact on the bottom line of trucking companies, and many are struggling to find ways to cut costs and increase efficiency.

Another significant issue is the ongoing struggles with equipment, including a shortage of qualified drivers for hire and a lack of available and affordable trucks. The driver shortage is a problem that has been affecting the industry for some time, and it is expected to continue in the future, which makes it harder for companies to find and retain drivers. Additionally, the high demand for new trucks and the lack of available used trucks are also driving up the cost of equipment. These challenges make it difficult for companies to acquire and maintain their fleet.

Another important development is the electronic logging device (ELD) mandate. The mandate requires commercial trucks to use ELDs to record their driving hours and other compliance-related data. While the mandate aims to improve compliance with hours-of-service (HOS) regulations and enhance safety on the nation's highways, it also creates challenges for truckers and fleet managers as they work to comply with the new regulations.

Trucking Industry Trends in 2023

aerial photograph of trucks parked at a distribution center

Persistently High Costs

The trucking and logistics sectors faced a challenging fiscal reality in 2022, as diesel costs and insurance premiums experienced large increases over the course of the year. While stakeholders may be desperate for relief from these uphill financial trends, there is no indication that the trucking industry will experience anything less than an equally turbulent economic landscape in 2023. 

The current market conditions have revealed a new normal, one characterized by higher operating costs driven by increasingly scarce resources. While it may be tempting to hope for a return to lower costs in 2023, this appears unlikely given current market conditions. 

Businesses that want to stay competitive going forward must become more efficient in their operations, as costs remain stubbornly high for the foreseeable future. Companies need to take a close look at their expenses and identify areas where changes can be made, balancing costs with efficiency and effectiveness. Across several sectors, companies will increasingly rely on truck driver agency resources to either replace or supplement their staff drivers and reign in costs. 

No End to Equipment Challenges

Carriers looking to replace aging fleets will continue to be hampered by supply chain constraints for months and even years. The supply issues, which began in 2020, relate to semiconductors, tires, and other components that are in high demand throughout the global economy. 

For carriers, this puts fleet replacement and maintenance plans into a state of uncertainty. Supply contracts are failing as companies struggle to meet demand, leading to further delays in supply replenishment. Carriers must plan accordingly and consider long term supply agreements with suppliers; however, there is a fear that even those agreements may not be reliable given the supply-demand dynamic. This will cause headaches for fleets for some time to come and create an environment of uncertainty on when carriers can realistically receive the materials they need for repairs or replacements.

The significant demand for trucking products that has been generated by the ongoing pandemic has had a notable impact on the industry. Despite an increase in manufacturing activity to meet demand, these efforts have not been able to fully keep up with the mounting orders, largely due to a shortage of essential components. This imbalance between supply and demand has placed a considerable strain on truck manufacturers, leading to delivery time backups.Measures are being taken on multiple fronts to streamline the process and ensure that this demand is met to a satisfactory level in the coming months. Until then, many companies are being left in a challenging position.

Electronic Logging Device (ELD) Mandate Takes Effect

After years of delays, the ELD mandate for the trucking industry in Canada is almost here. Electronic logging devices will be required for all commercial vehicles beginning on January 1st, 2023. 

ELDs are intended to replace paper logbooks and track driver hours-of-service records in a convenient digital format. This technology has been widely embraced throughout the United States with positive results as it increases safety and compliance with governmental regulations. ELDs make it easier for regulatory agencies to monitor hours-of-service compliance.

Electronic logging devices (ELDs) represent a significant leap forward from their predecessor technological solutions, automatic onboard recording devices (AOBRDs) and earlier electronic onboard recorders (EOBRs). ELDs are outfitted with sophisticated hardware that can easily interface with the vehicle’s engine to collect and log data on driving hours. As ELDs measure actual vehicle motion and operation, they ensure accuracy in driver logs, surpassing the sometimes manual inputs necessary for AOBRDs or EOBRs. 

Truckker - Helping Companies and Drivers Thrive 

In order to overcome these challenges, it is important for trucking companies to stay informed and adapt to the changing industry. Companies can implement cost-saving measures, invest in new technologies and equipment, and find ways to attract and retain qualified drivers. And, of course, compliance with the ELD mandate must be a priority. 

By staying up-to-date on these and other trends, truckers and fleet managers can make informed decisions and find ways to overcome these challenges.

Truckker helps companies overcome transportation challenges by providing them with a reliable and experienced workforce for their transportation needs, all while saving time and resources. 

For drivers, working with a truck driver agency is an easy way to find consistent and steady work. If you are looking for a trucking job that aligns with your experience, preferences and goals, sign up with Truckker today!