2014 has been a challenging year for the trucking industry. Driver turnover, increasing fuel prices and DOT regulatory issues have caused a shut down in operation by some trucking companies. This also meant that freight prices surged significantly and shippers had to pay a lot more to deliver their shipments.
A sharp increase in driver turnover is mainly responsible for the current state of the industry. While retirement is a key factor, many drivers are leaving to join other industries. Over-the-road (OTR) drivers are opting for jobs in construction or less-than-truckload (LTL) truck driving. Changes to the hours of service (HOS) regulations have also brought about a decline in driver productivity. Additionally, carriers need to ensure that drivers meet the department of transportation (DOT) criteria.
Extreme weather conditions and high demand caused an unusually sharp rise in freight prices. Spot market rates shot up by as much as 20 percent in the first three months of 2014. Industry LTL heavyweights such as FedEx, UPS Freight and Con-Way Freight increased their rates by 3.9 percent, 5.4 percent and 5.4 percent respectively during the year. While some shippers were protected from mid-year rate hikes by their contract terms, many were not.
Stagnant wages and long working hours away from home have made it difficult for trucking companies to attract new drivers or retain existing drivers. The industry’s 400,000 trucking companies are hesitant to expand their fleets for fear the economy and consumer demand will grow less than projected.
With an aim to help professionals deal with the problem, AudioSolutionz, the country’s leading business enhancing information and training provider will host a webinar discussing the ongoing crisis in the trucking industry. The webinar by leading industry consultant Noel Perry on Thursday, December 11, 2014 will also identify some of the major risks that the industry may confront in 2015 and train professionals on how to develop well-documented market plans for the future.
About AudioSolutionz
AudioSolutionz is the country’s leading source of business-enhancing information and training on trending industry topics. For more than a decade, it has been helping professionals connect directly with industry experts and get valuable knowledge and skills specific to their industry. AudioSolutionz specializes in training webinars, audio conferences, DVDs and transcripts in 12+ industries.