Transportation industry is predicted to get stronger compared to it was last year. Some aspects are found to be responsible for the freight transportation trends in 2018. One of them is increasing demand for freight. On the other hand, there is a shortage in the truck supply and driver supply. There has been very little re-generation in the freight transportation industry.

Statistic data showed that older drivers are retiring, while very few young drivers get into the industry. Many aspects are responsible for the driver shortage. They include long working hours, being away from family for long periods, long-distance driving that spends much energy, sleep deprivation, or less-than-ideal pay.  As a result, the number of trucks to haul the increasing freight demand becomes fewer and fewer.

Factors that Affect the Freight Transportation Trends in 2018

The shortage in driver and truck supply affects the freight transportation trends in 2018 in a significant way. The following are other factors that influence the freight industry this year.

Higher Rates

The main impacts include higher freight rates, since the trucking companies have to may for securing a truck. This is actually a predictable result of increased demand, which is combined with decreasing supply (of available trucks). Of course, the increasing trend can be temporary in nature. However, the capacity is very tight this year.

If the trend continues, there may be a significant change in the freight transportation industry. The most possible impact is a transition from highway freight to rail freight. The latter is found to be less expensive than the highway transportation is. Land transportation is associated with higher operational costs during the transport process.

Government Regulations

Another aspect that influences the trends in freight transportation industry this year is increased government regulations. They include Electronic Logging Devices (ELD) mandate, which requires any motor carriers to equip their trucks with electronic devices. The device serves to track the way and to record the drivers’ working hour for the day.

According to the government regulations, the maximum hours of service for a any truck driver is 11 hours. After the period, they have to get at least 10 hours of rest. Before the mandate was put into effect, the truck drivers mostly recorded their hours of service on a manual log book even though the ELD has actually be around for some time.

Some small carriers have a problem with the cost for installing the electronic devices. However, some freight companies chose not to install them just because they disliked the devices that automatically track their movement. Some drivers perceived that the devices broke their privacy. However, the mandate aimed at creating safer roads for all. Therefore, the freight companies had no choice but to install the electronic devices.

Of course, there are some other freight transportation trends in 2018 to anticipate by the carriers. The trend may significantly affect their business. We have not seen any aspects related to how the freight transportation industry responds to the web-based business platform and customer behavior. So, make sure to check the next posts for more information.