Why Is There A Decline In Truck Transportation?
Red transfer truck
If you’re wondering why shipping still seems slower in certain areas, you are not alone. While many shipping and truck transportation companies have worked tirelessly to speed up production, they are still dealing with a decline in truck transportation services, even months after the Pandemic crisis of 2020. So, why is there a decline in truck transportation?
What Is Happening With the Trucking Industry?
Experts say the trucking industry is suffering because of a recent job decline. Since this past February, more companies have experienced job decline than in the past 10 years. The only exception to this job decline was in April 2020, when the world experienced the effects of a global pandemic. According to the Bureau of Labor Statistics, the trucking industry lost approximately 8,500 jobs, which was about the same number in March 2013. The Bureau of Labor Statistics tracked this data and compared it with previous months dating back to March 2013. The data showed there were only three months since 2013 that showed significant job loss. Other than those three months, the data actually revealed an increase in jobs for the trucking industry. When the Bureau of Labor Statistics adjusted the numbers to reveal seasonal and non-seasonal job data, they saw an additional decline in seasonal jobs.
Why Is There A Decline In Trucking Jobs?
While companies will always experience fluctuations in jobs, it’s no secret that many companies have struggled to survive since the 2020 Pandemic. As the vice president of market intelligence at Arrive Logistics, David Spencer reports there are other factors contributing to job decline in the trucking industry. Trucking fleets pay close attention to signals from the market. If it appears there are fewer needs for transportation, they will hire fewer drivers. Carriers may notice a decline in shipping volumes and reduce their productions. As shippers decrease the volume, carriers will do the same, leading to a natural decrease in jobs. Experts agree we may continue to see a decline in jobs over the next few months as shipping volume continues to decrease. These experts are also confident the situation will resolve as trucking companies continue adjusting to different conditions. Trucking companies also have to factor in contract rates and equipment prices that may affect hiring decisions.
Reports also show a decline in warehouse and rail jobs. This decline is another factor that affects truck transportation jobs. As fuel, equipment, shipping, and inflation rates continue to rise, trucking companies are watching the numbers in the market as they make future decisions.
What Does This Decline Mean For Other Companies?
If your company depends on the trucking industry to meet your shipping needs, you are not alone. Many companies are wondering how the job decline will affect their daily operations and the future of their businesses. This is especially true for companies who handle time-critical shipping needs within their company. The good news is that experts do not believe this issue will continue for much longer. They have hope for recovery and a gradual increase in shipping volumes as 2023 progresses. However, it’s still important to remain informed of the market changes in order to make the best decisions for your business.
Partner With Trifecta Transport
Trifecta Transport is a team of experienced and dedicated individuals who help educate business owners in shipping logistics. We understand the frustration of booking, scheduling, and meeting budgetary needs. We work with many carriers to bring our customers the best shipping options for their businesses. Our team can help you too.
Contact Us Today
If you need help to navigate the shipping logistics in your business, contact Trifecta Transport today. We are passionate about educating other business owners in shipping logistics, so they find success in their business. Contact us for a quote on our services today.
