Maneuvering through the various challenges inherent in the logistics industry can put the best 3PL company to the test. One sector where day to day challenges have always been present is in the trucking industry, regardless of whether it’s a small, medium or large sized carrier. Knowing the challenges the trucking industry faces is vital to working collaboratively on logistics with providers of heavy haul transport.
Five Challenges Faced by the Trucking Industry
Every day a trucking company opens its doors, there are five immediate and ever-present challenges it has to overcome:
Regulations
Every rig rolling down the highway has to adhere to an ever-changing list of regulations, restrictions and requirements. From hours of service to fuel emission limits, heavy haul trucking is heavily governed by multiple departments across Canada and the US. The red tape that trucking companies deal with is enough to wrap a rig 10 times over.
Operational Costs
Fuel prices fluctuate faster than the speed of traffic on the 401. Diesel prices ebb and flow, making it difficult for trucking operations to have consistent cost certainty. The same can be said for insurance requirements that can be extremely high depending on what’s being hauled
Cash Flow
Shippers and brokers often take up to 60 to 90 days to pay the trucking fleets contracted to handle their logistics. Such an extended payment schedule can be taxing on the cash flow of heavy haul trucking companies. That often makes it difficult for such organizations to grow, because they’re never able to accumulate large amounts of usable capital.
Driver Retention
Like many skilled trades, the trucking industry is suffering from a shortage of well-trained, competent and experienced drivers. Turnover in the industry is well known, and the factors are many: stress, health, age and lack of personal insurance are just a few reasons. The risks associated with driving are higher too, as more and more cars hit the road driven by people with little respect for sharing the highways and byways of North America.
Infrastructure
Lack of investment in major infrastructure in both Canada and the United States makes it a hard road for any company earning its revenue travelling across the continent. From aging bridges to uneven highways, poor infrastructure leads to more accidents.
Learn ways your 3PL provider can help alleviate the challenges facing the trucking industry.
