The trucking industry is experiencing quite a bit of growth right now, largely fueled by e-commerce. While this is good news overall, it also means you need to be prepared to meet the demands of retailers and consumers. The following are four of the top trucking trends for 2019 to help you prepare.
1. Driver Shortage
One of the biggest challenges facing the trucking industry right now is the lack of qualified drivers. At a time when the demand for freight is growing, older drivers are retiring with not enough younger drivers to replace them. There are several reasons for this including long hours and the grueling nature of life on the road. Transportation companies must find incentives to encourage more people to choose driving as a career. Otherwise, the driver shortage could have a harmful effect on the entire economy.
2. Rising Costs
The labor shortage in the trucking industry means increased wages and incentives for drivers, which increases the cost to operate a fleet. However, it is good news for owner-operators who can benefit from the higher freight rates. Rising energy costs due to instability in the Middle East and other reasons can also contribute to rising costs for transportation. At the same time, new technology, may end up reducing costs in the future.
3. New Technology
One of the biggest technological trucking trends is the gradual transition to electric vehicles on the road. However, before this is fully realized, there are still challenges such as the need to develop batteries that are lighter and have greater storage capacity.
Other advances in technology are also creating rapid change in the trucking industry. Apps and software are improving efficiency in areas such as freight matching, driver and fleet management and billing. In addition, blockchain technology may soon make its impact felt on the transportation sector. Among other things, this is likely to result in greater trust and transparency between companies.
4. Shifting Relationships Between Shippers and Carriers
Along with all of the other trucking trends for 2019, it’s likely that both shippers and carriers will be more selective in the way they deal with one another. Carriers, for example, are now less willing to deal with shippers that cause significant delays. There will be increased pressure for shippers to be more driver-friendly in this environment. Overall, transportation companies will become more strategic about who they do business with and the terms they demand.
All of these trucking trends are likely to have an impact on your business. One way you can improve your position no matter what the future brings is to incorporate transportation factoring into your business. This is a type of financing that lets you collect immediate payment for your invoices.
To find out how to improve your cash flow with freight bill factoring, contact Riviera Finance.