What’s Causing the Latest “WHAT?!” in the U.S. Trucking Industry

There has been a lot of movement in the U.S. trucking industry in the last three to four months. Shipping rates have increased, registration policies have undergone a review with many carriers and delivery decline rates have uncharacteristically peaked.

Since these movements have significantly affected the supply chain operations of businesses, and it’s expected they will continue to do so for a foreseeable future, we decided to overview these moments and explore in depth to what’s causing the “ WHAT?!” in the trucking industry.

It’s All a Chain Reaction!

The tariff hikes, the policy reviews and the high delivery decline rates… it’s all a chain reaction. And at the center of it are two words: “Capacity Restraint”.

The trucking industry is facing multiple capacity restraints:

There is a shortage of drivers

The demand is at an all-time highthanks to solid consumer spending

The regulations on maximum allowable hours for truck drivers are becoming increasingly stringent

All these things have added up and created a huge gap between the demand and supply in the trucking industry.

Consequently, tariffs have been increased.

Moreover, to improve their efficiency and maintain profitability, trucking companies have now become more selective in the jobs they’re picking; there has been a policy review so to speak of. Carriers are refusing to entertain delivery requests made at the last moment, requiring earlier notices from customers. Also, jobs deemed “ less” profitable are being turned down.

It’s predicted that the current challenges and state of the U.S trucking industry will continue to prevail as is in the coming years. And so, businesses must review their supply chain operations and economics to stand against these testing times.

Are you a business owner?

How the recent movements in the trucking industry have affected your business operations?

What do you plan to do to overcome the effects of these movements?

Let us know in the comments section below; we’ll love to hear from you.

A BONUS read: Voluntary Compliance: The 2018 Product Date Label Regulations