Common Challenges for Trucking Companies

The freight market remains challenging, pushing trucking leaders to rethink budgets, operations, and investments. For many fleets, it’s about surviving 2024 while positioning for a stronger 2025. As CFOs and executives look ahead, the focus is clear: control costs, leverage technology, and keep drivers at the forefront. Trucking professionals know these pressures all too well—balancing rising costs, driver retention, and safety while ensuring operational efficiency. But within these challenges lie opportunities to refine processes, build resilience, and prepare for the recovery many anticipate in the year ahead. Key Points: 🔹 Cost Management: • Mesilla Valley Transportation saved $75,000-$100,000 by auditing tech contracts and cutting unnecessary expenses. • ITS Logistics strategically reduced fleet size to match demand, emphasizing profitability over scale. • Garner Trucking is deferring large equipment purchases due to rising interest rates and long-term costs. 🔹 Safety and Driver Prioritization: • Fleets are investing in safety technologies to reduce accidents and insurance costs. • Driver performance is monitored closely to improve fuel efficiency and operational reliability. • Retention strategies are key, with companies prioritizing employee well-being despite tight budgets. 🔹 Technology Investments: • AI-backed tools like ITS Logistics’ ContainerAI streamline operations and improve real-time decision-making. • Boyle Transportation integrates advanced telematics and automation to reduce fuel and maintenance costs. • Automated billing systems are shortening cash flow cycles, helping fleets stay financially agile. 🔹 Strategic Partnerships and Sales: • ITS Logistics builds strong relationships with core carriers to maximize service and cost efficiency. • Sales teams are targeting high-value verticals to improve profitability and reduce dependency on spot markets. • NFI Industries uses data-driven insights to guide reinvestment and strategic growth. #TruckingIndustry #FreightMarket #CostControl #DriverSafety #TransportationTechnology #LogisticsLeadership #TruckingRecovery https://lnkd.in/eaDE-UpT

Compensation, regulation, and parking. These are the three top issues for Company Drivers, Owner-Operators, and Independent Contractors according to the latest American Transportation Research Institute. And it makes sense, the freight market isn't what it used to be as Rachel Premack's latest piece in FreightWaves highlights. https://lnkd.in/egjeMSSi For company drivers, compensation makes all the sense in the world. For OO/IC's fuel prices directly impact profitability as fuel remains one of the largest costs for motor carriers. Compensation is likely never going to fall below the top three for these stakeholders. And what of regulation? The Federal Motor Carrier Safety Administration (FMCSA) has revised its speed limiter entry in the U.S. Department of Transportation’s September 2023 Significant Rulemaking Report to eliminate a top speed in the summary. https://lnkd.in/eXdesMHe, the initial proposal required speed limiters on all commercial motor vehicles to be set no higher than 68 mph. While there are significant benefits to reducing speed for fuel, tires, maintenance, insurance, and general safety, when a significant part of the industry is pay-per-mile, reducing speeds becomes a much thornier issue. And parking? Parking is everything. According to Todd Spencer, President of the OOIDA, there is only one parking space for every 11 trucks on the road. With a problem of this scale- of this significance - truck parking isn't a driver problem, it is an all of us problem. Today on the program, we welcome Evan K Shelley 🚛🅿️♣️ of Truck Parking Club to better understand the challenge.

🚨 The U.S. trucking industry is facing a crisis that’s bigger than most realize: a critical shortage of qualified drivers. Nearly half of freight businesses are struggling to fill seats—45% say the lack of qualified applicants is their #1 challenge. Even more concerning? 63% report that driver recruitment and retention have either stalled or gotten worse in the past year. This isn’t just a numbers problem. It’s a business survival problem. Companies are feeling the pressure like never before. Many are turning to technology—digital freight matching, route optimization, and automation—to keep freight moving. But tech alone can’t solve a people problem. Here’s what I’m seeing: - The talent pipeline is drying up as fewer new drivers enter the industry. - Experienced drivers are leaving, citing burnout and better opportunities elsewhere. - The gap is forcing businesses to rethink everything from pay structures to work-life balance. The bottom line: If we don’t address the root causes—training, working conditions, and industry perception—the shortage will only get worse. What’s working (or not working) in your company to attract and keep great drivers? Let’s share ideas and solutions. #Trucking #Logistics #DriverShortage #SupplyChain #Transportation #TruckingIndustry

🚛 Navigating the Current Challenges in the Cargo Freight Industry 🚛 The cargo freight industry is facing unprecedented challenges—global disruptions, increased fuel costs, labor shortages, and evolving regulations are putting immense pressure on businesses. But in every challenge lies an opportunity for growth and innovation. 🔍 Key Challenges: 1. Supply Chain Disruptions: Delays in shipping and congested ports have become the new normal. 2. Rising Fuel Costs: Increasing operational expenses directly impact profit margins. 3. Driver Shortages: A lack of qualified drivers is making it harder to meet demand. 4. Sustainability Regulations: Stricter environmental guidelines are reshaping how we do business. 💡 Our Approach to Solutions: 1. Tech-Driven Efficiency: We’re leveraging real-time tracking, AI, and automation to improve route optimization, reduce idle time, and increase fuel efficiency. 2. Strategic Partnerships: Building strong alliances with suppliers and logistics partners to mitigate disruptions and ensure timely delivery. 3. Driver Recruitment & Retention: Offering competitive pay, better working conditions, and ongoing training programs to attract and retain top talent. 4. Sustainability Initiatives: Investing in eco-friendly trucks and exploring alternative fuels to stay ahead of environmental regulations and reduce our carbon footprint. The future is full of possibilities, and by staying agile and committed to innovation, we will continue to drive growth and success in the cargo freight industry. #CargoIndustry #FreightSolutions #LogisticsInnovation #SupplyChain #Sustainability #TransportationChallenges #FreightTech

Trucking has razor thin margins. Many don’t make a nickel on a dollar. Less than a 5% margin is not that good.  Some business minds would stay away from it. Every cost increase matters. And they keep coming.  Insurance, parts, maintenance, fuel, salaries, equipment.  Even money is more expensive than it was before. Increased interest rates make financing tough. When I was a kid, my dad would say,: “this is a pennies business.” I’m starting to get it. Carriers need to control costs.  To control, they must understand.  I’m no expert here, but I see who’s successful. They build networks.  They invest strategically.  They measure everything. They take planning seriously.  They participate in peer groups.  They work directly with shippers. They keep their driver turnover low.  They have a good fuel card program. They are intentional about fuel efficiency.  They are deliberate in their customer service.  They follow and participate in industry research:  American Transportation Research Institute They are in trade organizations that make them better.  Groups like the Truckload Carriers Association (TCA) Many carriers that make money are old companies, multi-generational. They have, in some ways, figured it out.  In other ways, they’re still working on it.  Great fleets are continually improving. They can make money and stay alive. #trucking #profitability #business