Trucking companies across the country are in a scramble to find drivers. This is especially true for long-haul routes. This not only drives up rates and wages, but also hurts small businesses. Due to the effects of our trucking shortage, it is more expensive to ship products and retail prices are higher. The current trucking shortage costs small businesses.
How bad is the trucker shortage?
According to the American Truckers Association, the shortage of truck drivers reached 50,000 by the end 2017. The problem is getting worse. The ATA believes the increased demand for shipping services and freight services in the U.S. is going to create an opportunity where the growing industry will need 898,000 drivers within the next decade. This equates to an average of almost 90,000 jobs per year. Demand is high, but capacity is limited.
A variety of factors are responsible for the shortage. Most experts agree that there are a few issues common to the entire industry.
* Working conditions that are difficult.
* The changing demographics of truck drivers.
The challenges of achieving a work-life balance.
* Issues of reputation in the industry.
These problems limit the number of people who are interested in trucking. These issues also create high turnover rates. The growing demand for e-commerce deliveries is creating a new influx of shipping challenges. This results in a shortage of truckers, which puts a strain on the U.S. economic system.
Small Businesses: The Impact
In order to address the severe shortage of drivers in this industry, there are efforts being made to improve conditions for workers. The government is enforcing regulations to prevent drivers from working too many hours. Shipping companies are also increasing their salaries. And improved technologies are boosting efficiency and safety. These factors, while not enough to stop the shortage of drivers, have resulted in high operating costs. Businesses that depend on trucking for obtaining and transporting their goods are paying these inflated costs.
Barron’s, citing government data reported that trucking expenses grew by nearly eight percent in the month of July. Some of these costs can be attributed to the rising cost of fuel, but they also show the impact of a growing shortage of drivers.
Causes of business disruption
The trucking shortage has reached a level where it is costing businesses. Due to the rising costs of trucking, companies are forced to increase their shipping expenses and consumers spend more for their products. Check out these areas that could see a noticeable increase in costs:
Ecommerce Deliveries : The e-commerce industry is not only defined by the need for fast shipping and delivery transparency. Customers also expect flexible, consumer-friendly returns policies. The small increases in shipping fees for each item could result in substantial costs over time for businesses and consumers.
Shipping timelines : Due to the strict schedules for drivers and the lack of drivers, getting goods to their destination is a time-consuming task. Due to the shortage of resources in the industry, businesses and consumers should be prepared for longer delays and a reduced level of flexibility.
Long distance shipments : Long distance shipments will take longer as drivers are expected to follow more strict schedules. There are also fewer drivers to share routes with.
Heavy Freight Deliveries: Organizations who rely on freight shipping companies to move heavy machinery or equipment could see their costs skyrocket as trucking firms struggle with the increasing complexity of moving special goods and equipment across long distances.
Deliveries Many small businesses provide delivery services in one form or another. You may have difficulty finding drivers for your business and you might need to raise employee wages or benefits.
Working Capital: How it Can Help
Here are a few of the ways in which the trucking shortage costs small businesses. Cash flow can be severely affected by the influx of expenses caused by high shipping costs. You may be able adjust your pricing and practices in the future, but you might need financial assistance to get you through. QuickBridge cares about your success and your customers’ satisfaction. We offer 24-hour funding to help you deal with the trucker shortage. You can use the additional working capital to hire drivers, pay payroll, and improve your business operations. Contact us now to get started.
