According to statistics from Government Fleet, smaller trucking fleets are taking over the roads, beating out bigger operations when it comes to picking up business. However, with growth among smaller fleets, a mix of issues such as training needs and replacement budgeting are causing a stir. Also, in the industry as a whole, a growing driver shortage tied with a surge in e-commerce is creating a major disparity in being able to serve customers on time.
As fleets grow and business picks up, stakeholders in the industry are scrambling to find ways to be effective and stay ahead of the curve. Here are some major issues operators are concerned about:
As mentioned above, the truck driver shortage is starting to be un-ignorable. According to the American Trucking Association, the industry is short on truck drivers by an estimated 63,000 positions. And even with a pay increase of more than 15 percent in the median salary range over the past six years, the demand for getting new drivers behind the wheel hasn’t been met.
To make matters worse, companies can expect to see that shortage increase, especially with an aging workforce. The average age of a driver hovers around 50 years old, and younger drivers aren’t applying as frequently as they used to.
In 2016, one of the major campaign topics among both major parties had to do with infrastructure spending. It is clear that the country needs to put more effort into rebuilding our roads, bridges, and highways.
Safe and reliable infrastructure is important to the industry and crucial for trucking companies to be able to operate efficiently and safely. Efforts have been discussed to pump more funds into the industry, but there has yet to be any major legislation passed.
Speaking of safety concerns, truck drivers are witnessing a sharp rise in not only accidents on the road but fatalities. In 2017, more than 37,000 people died in auto crashes, a decrease by two percent from the prior year. However, commercial trucking made up 4,761 of those deaths, marking a nine-percent increase and hitting its largest level in 29 years.
Now, major distractions on the road are starting to influence these numbers as truck drivers and commuters are becoming more and more distracted by phone use. This puts a whole new layer of importance on the need for commercial truck insurance to protect companies and their drivers from claims related to accidents and death. While not everything can be prevented, it can be protected by maintaining comprehensive commercial truck insurance coverage.
The laws and regulations affecting the industry are constantly under review and being revised. What’s more, different states see their own regulations change, like in California, where the recently passed AB-5 bill is upending what it means to be an independent contractor.
Electronic logging requirements are also starting to shape the industry as the electronic logging devices that are being mandated have been installed to help create a safer work environment for drivers. These devices help to accurately track, manage, and share the records of duty status of drivers.
Next, drivers are starting to see drug and alcohol sobriety tests be more intensely enforced. Updates to drug and alcohol testing, while beneficial for everyone on the road, including everyday commuters, can be costly, taking up space in an operation’s budget. Trucking fleets are having to find ways to keep budgets slim or even find room by cutting services.
One service that is being weighed by operations, but is still a necessity, is commercial truck insurance. Truck liability insurance should be kept as part of an operation’s budget outline and different commercial truck insurance brokers, like Western Truck Insurance, are able to provide personalized and form-fitting commercial truck insurance to fit a company’s needs.
About Western Truck Insurance Services
Western Truck Insurance Servicesis a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.