Below we highlight the latest developments related to the trucking industry, and industry which, if you think about it, affects everyone, from owner-operators to merchandisers to the customer at the very end of the supply line.
Truck hauling rates are going up in response to tariff issues, increased transportation costs, driver shortages, and new regulations.
High demand is responsible for this as the demand has reached a point where capacity has been significantly exceeded.
According to Department of Labor figures, long-distance freight costs were up nearly 10% in June over last year’s figures – the biggest increase in almost ten years.
Because of the robust demand for freight hauling, some trucking companies report having customers willing to pay as much as four-times their usual rates.
Not counting fuel charges, per-mile rates increased 9% in May over the previous year, the largest spike in nearly 15 years. Rates for flatbeds, temperature-controlled trailers, and dry vans have also increased.
The steady economy and increases in consumer spending are stretching the capacity of the freight sector of the U.S. economy.
Electronic logging devices (ELDs) requirements prohibit extending shifts beyond the maximum-allowable hours, which has contributed to the driver shortage problem.
This trend has started in 2007 and shows no signs of slowing down.
It’s been difficult to attract new drivers. Part of the reason for this is the slow pace of payroll increases.
As freight-transportation companies raise their rates, nearly half of those profits are being passed along as wage increases in an effort to attract and retain drivers. If you need some help streamlining your profits to improve your bottom line, consider the freight factoring program available from Pay4Freight. If you’ve considered getting into trucking, read our series of posts on how to start your trucking company, starting with the first post, 6 Steps to Legally Establish Your Trucking Company.