Carriers Face Ever-Changing Challenges in a Volatile Freight Market
Trucking companies face unique challenges. The driver shortage, new regulations due to the ELD Mandate, along with the accompanying tight capacity are only the tip of the iceberg for carriers.
So What Other Challenges Do Carriers Face?
RTS Financial created a list of the seven biggest challenges facing trucking companies: regulations, fuel costs, cash flow, driver retention, driver health, safety, and infrastructure.
Let’s take a look at a few of these challenges.
Infrastructure: Let’s face it--there are some pretty bad roads out there. Every time a carrier heads out, there’s a good possibility they might hit a rough patch. Accidents happen on bad roads which cause damage to trucks, roads, as well as, goods. Accidents disrupt the supply chain and cost money.
Driver Retention: The driver shortage is big news, but equally important is driver retention. Sure, it’s difficult to find and train qualified drivers, but what about keeping them? The American Trucking Research Institute’s (ATRI) 2017 Reportlisting the top ten trucking industry issues listed driver retention as # 5. Driver turnover forces trucking companies to spend big on hiring and training, as well as creating bonuses to keep qualified drivers happy.
Cash Flow: Ask any trucking company how long they often wait to be paid for loads delivered. The number of days can be staggering ranging from a manageable 15 days to as long as 90 days. Long wait times stymie cash flow and the possibility for growth.
Driver Health: ATRI’s report lists driver health at #10 and claims that “roughly 20% of drivers that leave their jobs cite health problems as a factor.” Drivers work long hours, are gone from home days at a time, eat in truck stops where food choices are not only limited but are unhealthy, and lack opportunity for regular exercise.
While we’ve only explored four of numerous challenges trucking companies face, you get the picture. When you add the regulations and costs associated with the ELD Mandate and the ever-growing driver shortage, you begin to see the full scope of adversities carriers battle every day.
Here at Pyramid Transport, we work with over 5000 approved carriers. We create strong relationships with trucking companies because we understand the unique frustrations of our carrier partners. We offer quick pay, quality loads, mutual respect, honesty, unparalleled freight match, and excellent communication.
A carrier’s best defense in a volatile market is a good partnership with a freight broker!