Despite the explosive rise of e-commerce (and the billions of pounds of e-commerce packages that must be shipped from place to place), 2019 was actually a difficult year for the trucking industry. This was due in large part to the levying of tariffs in response to trade wars between the U.S. and other countries. This resulted in a drop in the demand for freight and an overcapacity of trucks on the road. Nevertheless, there is still a major shortage in drivers.
Ongoing Shortage of Qualified Truck Drivers
According to the American Trucking Associations (ATA), the year 2019 saw a spillover effect from 2018, when the industry suffered a massive shortage of 60,800 drivers. That figure was up by 20% from the previous year’s shortage of 50,700. If this problem isn’t addressed, it’s been predicted that by the year 2028, there will be a truck driver shortage of more than 160,000. The ATA noted that, although motor carriers get plenty of applicants from would-be truckers, not enough of them are from qualified candidates. There are a few reasons for the driver shortage, but one of the most significant ones is the relatively advanced age of the existing workforce of truckers. As existing truckers retire, there aren’t enough qualified candidates to replace them.
Testing of Autonomous Big Rigs
Companies like Google have been testing autonomous passenger vehicles in limited areas for quite a while now. However, this past year saw the advent of driverless big rig testing on U.S. roads. Tesla has been testing its trucks on Californian roads, while Daimler has been doing test runs on roads in Virginia.
Rollout of the ELD Mandate
Since 2012, motor carrier companies have been gradually integrating electronic logging devices (ELDs) into their trucks. Some previously installed, non-ELD devices had been grandfathered in, meaning they did not have to be replaced by ELDs—until now. As of December 16, 2019, all trucking companies are required to abide by the ELD mandate in all their trucks.
No matter what the next year or two brings, the professional drivers and logistics experts at Xcel Delivery Services will be ready for it! We offer high-tech inventory management solutions, cross docking, fleet replacement services, local and long-distance delivery, and much more. You can reach our team in Phoenix at (602) 368-1300 to discuss your company’s needs.
