The trucking industry (also sometimes referred to as the logistics industry) is the name of a vital part of America’s economic activities. Trucking Companies provide Commercial Vehicles and drivers to carry goods from one part of the country to another. Transportation by Trucking is major way of transporting goods in the USA.
Trucks are used mainly for transporting materials and commercial products over land. Other incentives for the purpose are transportation by carriage trains and air carriage. Air and train cargo services have certain drawbacks however; the most obvious on is that both of these cannot go everywhere in the country but trucks can. This is due to the presence of vast and complex network of highways and trucking stations across the country.
Challenges to the Industry:
Unfortunately the trucking sector is facing a lot of problems these days. Many small Trucking Companies are closed or are under heavy debt and fighting for survival. Trucking sector provides many Owner Operator Jobs which are also adversely affected when the sector downsizes
Major causes of the down trend are discussed in this article.
The recent economic crunch is on a global scale. USA is certainly affected by the phenomenon. As the production and consumption of commercial goods is decreased the trucking industry has less and less loads availableto carry. This is one of the major causes of the down trend in trucking sector.
Other major problem for the trucking industry is fuel cost. Commercial heavy load carrying vehicles are diesel fueled. Diesel, along with other petroleum products, is continuously rising in price in past few years. As the fuel cost increase, trucking companies are left with no option than to increase their charges or cutting short on their man power etc.
Congestion on the freeways is yet another significant problem for the truckers. Roads are ever increasing in truck traffic and truck stations are crammed with Vehicles most of the time. Tough to meet security and safety regulation by federal and state authorities imposed on trucking companies worsen the situation.
With less freight to carry around the country truckers are struggling hard to get contracts. There are now internet based load boards. They offer loads which need to be moved by the truckers.
Authorities require truck drivers to be specially educated for the job. The ever hardening regulations and rules require more and more educated drivers. But properly educated truckers are not easily available everywhere. Shortage of drivers is also a major problem for the industry.
More and more states in the US are introducing environmental laws regarding emissions of carbon dioxide and carbon monoxide gases by petroleum based vehicles. These laws require trucks to use advanced emission reduction equipment; which add to the cost considerably.
Another major problem, which limits the truckers from working at their desire time of the day to get the most out of their trips around the country, is the Hours of Service regulations by National authorities.
These problems are deteriorating the trucking industry of the US. Small trucking companies are being kicked out of the game and big giants are expanding their reach.
