Top 5 Obstacles To End In 2022 If You Are A Logistics Services Provider
In the industry, moving goods from one place in the USA via truck to another seems like a straightforward task. However, it has its own set of challenges. Especially, after the COVID-19 breakout, the whole sector has come across different challenges time and time again. Logistic services providers need to be on their toes all the time.
The Top Factors Creating Issues For Trucking And Logistics Services
- Increase fuel prices:
As we all know, there is a limited amount of fuel on earth, and the price of fuel will inevitably go up. But other factors can push the prices of fuel upward in a short time. The recent break-out of the war between Ukraine and Russia is an example of this. Russia is the second-largest producer of petroleum and due to sanctions, many countries are unable to buy fuel from Russia which is making fuel costlier. Sudden events like this one add to the worries of every logistic services provider.
- The Difficulty of cutting transport costs
The logistics industry is well aware that shipping and transportation are by far the most expensive aspects of their industry. Each year, on average, businesses in the United States spend more than $1.04 trillion on transportation. It seems this issue won’t go away anytime soon since it is the largest overhead for most businesses (even remote ones).
The good news is that we can start to reduce shipping costs by analyzing shipping data and optimizing shipping routes. It is possible to cut costs by coordinating incoming orders, reducing wait time, and forecasting traffic conditions. These measures not only bring the cost down but also lead to better customer satisfaction
- Truck driver shortages
The shortage of truck drivers is one of the biggest obstacles facing trucking companies all across the country.
According to industry estimates, the trucking industry faces a shortage of more than 50,000 drivers every year. Moreover, it is just hard to find young truck drivers. The median age of truck drivers is 49 in the USA. Even after reforms in government policies and a push to make trucking more attractive, the number of young people looking up to trucking as a career is very small.
- Difficult to find drivers for certain routes:
It is a truth that not every route in the USA and Canada is feasible for truckers all the time. Due to weather, demand, or the nature of the route or product type, some shippers find it hard to find drivers for particular routes. Even if you find a driver, you may have to shell out a premium price. In this situation, a reliable freight brokerage company like ours (Virtual Logistics) can help you find a driver at an appropriate price.
- Changes in regulations:
Rules and regulations affecting trucking get looked into regularly. Some of the proposed laws aim to improve security, bring more transparency and make trucking more efficient. For example, The FMCSA wants to extend shifts, change the rules regarding breaks, and reassess how to calculate involuntary breaks (like those for bad weather). Another example of trucking reform is the use of drug & alcohol sobriety tests.
The changes to drug and alcohol testing shouldn’t be an issue, since we all need to be safe on the roads; however, the tests come at a price, and trucking companies bear that cost.
- Tech Adaptability:
With the passing of time technology is benefitting us all in multiple fields including trucking. Technological advancement is transforming the trucking industry in a big way. GPS navigation and smarter vehicles are two examples of it. We have the technology today to build smarter trucks. In the future, we may see self-driving trucks as well. However, technology can prove to be a hurdle as well. Some drivers do not react positively to technology. Training drivers on new types of vehicles can prove to be an issue as well. And there is a cost part related to training as well.
Why Hiring A 3rd Party Logistic Service Is A Good Option:
Overcoming some of the above-mentioned hurdles is possible if you hire or outsource your transportation-related tasks to professional transportation and logistic services provider. Virtual Logistics provides multiple types of solutions for most issues. For example, we can provide solutions for freight brokerage, GPS navigation, driver payroll, financial disputes in trucking, cross-border shipments, and more. For further information on our services or to request quotes, get in touch with us.