The systematic and structural challenges plus reliefs for the trucking sector
The trucking sector is changing, rapidly and continuously. These changes are both systematic and structural as it seems, with both macro and micro-level effects, impacts, and issues.
In 2020, the sector was huge, with over 9 million drivers working across the value chain. Though the numbers are high, still there is a shortage of drivers and the industry is facing shortages across levels.
Let’s look at all the challenges and possible reliefs that the industry is witnessing and probably would witness for a few more years to come.
Challenges to the trucking sector
The challenges faced by the trucking industry are structural, systemic, as well as temporary. While grappling with issues like rising fuel prices, the industry is making some strenuous efforts to balance the supply chain disruption as well.
The driver shortage is one of the top challenges that the trucking industry is facing. The trucking industry is dealing with a major shortage of experienced drivers, who are in high demand. With the pandemic and changing dynamics, drivers are retiring, and fewer inexperienced drivers are entering the market due to entrenched perceptions. This has disrupted the supply-demand ratio of good and relevant drivers in the market.
Gas price increase
Gas prices are exploding all over the USA. In the back-to-normalcy phase, after the pandemic and the ongoing war crisis, gasoline prices are surging at a fast pace. With the price being over $4 in most states and increasing frequently and steadily, the trucking industry is likely to face margin pressures as costs rise.
The drivers and trucking industry are facing another challenge which is the changing demands of clients, customers, and consumers. The market is on fire, service expectations are too extreme and the market is too competitive. As an estimate, Amazon ships 1.6 million packages a day, while UPS and FedEx handle 10 billion packages per day, more or less. Many of these deliveries come with premium delivery times, making it a tough situation for the trucking industry.