The trucking industry is experiencing the record demand as the US economy is recovering. But at the same time many smaller companies, who are the majority in this business, are going through hard times.
This year the amount of freight transported by trucks has hit its peak. It has happened due to improving retail sales and led to growing of the trucking industry revenue. But the expanses have been also growing for transporting companies. The industry has a hard time attracting new drivers so the companies have to raise salaries and offer sign-n bonuses. Also many truck drivers choose to leave the industry because of the new regulations that keep them from getting paid as much as they are used to.
Often small and midsize companies find it hard to adapt because of the lack of manpower and technology. Hundreds of these businesses have closed or been sold out to bigger companies who have enough finances to handle the ever changing trucking industry. It’s hard to grow in these conditions and many prefer to leave the business.
It’s also not easy for truck drivers to adjust. Many plan to retire as the rule to have an e-Log will become active in October. The rule is aimed to make the roads safer but there are some points of disagreement. This rule does not take the drivers sleeping patterns into consideration, as well as weather conditions and traffic. And the main thing is the decrease of drivers’ income the regulation will cause.
As for the companies, they can see some benefits from installing e-Log systems in their trucks. Drivers tend to get in trouble for not updating their paper logs and with the new system this problem is solved. The businesses have an option to raise drivers’ pay for all the inconvenience e-logs can cause them.
Still, the challenges are present, and many company owners are planning to quit the industry. It’s easy for big companies to expand during the time of trucking boom, but for many smaller businesses it might be too hard to adjust.