Truck drivers are responsible for transporting various items from one point to another. They work different hours than regular employees, some of them even drive all night to deliver goods. Owner-operators are usually the highest-paid truckers. The U.S. economy would grind to a halt without trucks like the best trucking company in Georgia – CSA Transportation.
Without trucks, the U.S. economy would grind to a halt
Trucks are the backbone of the U.S. economy, transporting 70 percent of all goods transported in the country. Trucks provide transportation for goods that range from medical supplies to critical commodities. They deliver products to warehouses, ports, and airports and are vital to our transportation network. Without trucks, our economy would grind to a halt. Trucking is an industry with high turnover, but fleet managers can minimize this by implementing shorter routes and allowing drivers to go home every night.
Without trucks, hospitals, food manufacturers, and banks would suffer, with food, fuel, and other goods unable to be delivered. In less than 24 hours, hospitals would run out of supplies, and manufacturers would have to suspend production. Within two days, there would be a shortage of goods, causing a severe economic crisis. Without trucks, we would experience a major supply shortage within two days, causing panic buying that could be disastrous to our economy.
Truckload carriers specialize in hauling large shipments for long distances
There are two kinds of truckload carriers, TL and LTL. Full truckload carriers haul large shipments long distances and operate trucks with 53′ trailers. These carriers have the advantage of moving larger quantities at once, as they only have to make one trip to the final destination. On the other hand, less-than-truckload carriers concentrate on moving a single container, so they have more flexibility when it comes to route and destination.
In the world of long-distance trucking, a single truck is used to transport a variety of freight. Truckload shipments, as the name suggests, fill an entire semi-trailer. On the other hand, LTL shipments fill multiple trailers and are not consolidated. As a result, these trucks are often used to transport goods smaller than truckloads and are less expensive than full truckload shipments.
Owner-operators are the highest-paid truckers
While most truckers work for a larger company, owner-operators own their trucks and operate them independently or lease them to another company. While this level of independence means higher expenses, it can also mean higher pay. Since owner-operator is responsible for maintenance and repairs of their vehicles, they are expected to make enough money to cover their expenses. In addition, truckers who operate independently are often more entrepreneurial and self-motivated than their counterparts.
The biggest challenge an owner-operator faces is locating loads. Owner-operators can obtain loads by posting ads on load boards. Rates are often based on the type of freight hauled. Using this information, owners can calculate their cost per mile. Cost per mile measures a driver’s profit after expenses. This figure is calculated by multiplying fixed and variable costs by the distance the driver covers. The resulting profit margin is then determined.
Driver shortage is the biggest limiting factor for the trucking industry
The shortage of truck drivers is the most widespread problem facing the trucking industry. This problem is exacerbated by the growing demand for freight and an aging driver workforce. The shortage may reach 105,000 drivers by 2023 and 160,000 by 2028. The DAT Truckload Volume Index, which tracks the volume of freight moving by truckload carriers, dropped 19 percent and 8%, respectively, in March and April. Meanwhile, many Department of Motor Vehicle offices remained closed or halted services.
The shortage is largely the fault of poor wages and benefits and is set to grow with the number of drivers on the road. Truck drivers will find better options elsewhere with a low starting salary and a dwindling benefit package. In addition, trucking companies need to look for ways to attract the next generation of truck drivers. The current demographic trends in the trucking industry do not encourage young people to choose truck driving as a career, and many millennials don’t even own trucks. Trucking companies must make their trucks more appealing to younger generations to avoid a future driver shortage.