7 Biggest Challenges Trucking Companies Face Today
As it keeps growing, the trucking industry is in a constant state of flux. Those dealing with the greatest challenges are small and medium-size carriers. Here is a look at 7 of the most critical issues affecting trucking in the current market.
Saving Money on Fuel Costs
Fuel efficiency and getting the best deal on fuel are central to keeping costs down for truck fleets. Current diesel prices are low, but that can fluctuate rapidly. One of the most promising ways to save is with fuel card programs. These give the company discounts on their diesel fill-ups and for a range of other services.
Retaining Good Drivers
Trucking companies need 48,000 more drivers right now. And they are dealing with turnover at a rate of 100%. The solutions that companies are trying include higher pay, better benefits and more bonuses based on performance.
Accident and fatality rates are up nationwide. Companies are investing in advanced sensing technology to help drivers prevent collisions.
The U.S. is #16 among developed countries in the quality of its highway infrastructure. More funding is needed to improve roads and bridges. Without it, companies are looking at lower profits and an increase in accidents and delays.
Health of Truck Drivers
Rolling Strong of the Truckload Carriers Association, just one of several new programs that are aimed at bettering the health of truck drivers. Statistically, they have double the rate of obesity and diabetes compared to workers in other fields. And they are twice as likely to be without health coverage.
Dealing with Cash Flow
Trucking companies must contend with a 60 to 90-day timeframe for getting paid, a fact that limits growth and causes havoc with cash flow. Many turn to accounts receivable financing, also called factoring.
A wide range of government regulations cover the trucking industry, like hours of service, e-logs and fuel emission standards. Though the goal is safety, it also results in red tape and expense for the drivers and companies.
For help with your trucking business, call the experts at Vantage. They have years of experience that will keep you on the road to success.