News / Could Truck Driver Overtime Hurt E-Commerce?

Could Truck Driver Overtime Hurt E-Commerce?

17 June 2022 - by - in Industry News
high trucking demand

Truck driving into the sunset.

Major companies are offering overtime to truck drivers to help compensate for the increased delivery demand. While this may seem helpful for drivers, it has some disadvantages for e-commerce companies. Regardless if your business uses an e-commerce platform, here are a few things you should know that could impact your business. 

What Is Happening With Truck Driver Overtime?

According to a new bill, the Guaranteeing Overtime for Truckers Act, truckers are eligible for overtime wages. Previously, many trucking companies limited drivers’ hours to 40 and then hired more drivers rather than offering overtime wages. In light of the new bill, drivers could earn more money. Most drivers could easily work over 40 hours a week while traveling their delivery routes. While overtime sounds helpful for drivers, it could hurt other businesses, including the e-commerce industry. Trucking companies already struggle with paying and retaining employees. Paying for overtime will cause these companies to struggle with finances and employee retention. Companies who pay lower wages face the possibility of drivers moving on to bigger companies who will provide better compensation. 

Could Truck Driver Overtime Hurt E-commerce?

Although paying truck drivers overtime wages sounds like a good idea, experts believe it will hurt e-commerce in the long-term. As trucking companies pay more compensation, the shipping costs may also increase. Currently, most truck drivers spend at least 6 hours of driving time per day. Factoring in traffic and suspension time, a driver can easily exceed an 8-hour workday. This means most truck drivers will earn overtime pay each day they work. Trucking companies can adjust schedules to avoid paying for overtime. However, this adjustment will affect shipping times and costs. This trickle down effect will also hurt companies that rely on e-commerce platforms. 

Freight shipment delays and high shipping costs may cause companies and consumers to find alternative solutions. This will affect both retailers and consumers. Research shows consumers value free delivery and competitive pricing. If the rising costs of shipping continue, consumers may find other shopping alternatives. 

How Will This Affect Your Business?

While the overtime bill may not pass, it’s important to consider how it will affect your business so you can start planning. Experts say this bill may not directly affect e-commerce businesses, however, businesses will feel the overall effects. Again, this will depend on the type of company and its growth. Larger companies that can afford overtime wages may not struggle. However, it’s not always possible to know which companies handle your shipments. 

If your business ships goods and materials, you may experience longer shipment times and higher prices. Partnering with another company can help you increase business growth and supply you with the tools and resources you need to navigate shipping logistics. 

Trifecta Transport Can Help With Shipping

Are you dealing with common shipping issues in your business? It’s hard to know whether shipping issues are because of trucking shortages, freight shipment delays, or another reason. When you’re dealing with shipping issues in your business, it can affect customer service and business growth. 

At Trifecta Transport, our team understands how to deal with time critical shipping issues that threaten business growth. We offer a wide range of services that include quoting, booking, tracking, and managing logistics. When you partner with us, we can help you navigate the details so you can focus on your customers. 

Contact Us Today

Need help working out the shipping details of your business? Contact Trifecta Transport today and let us help you work them out. We are ready to answer your questions and help you create a plan that includes the best shipping methods for your business.