Cost inflation within the trucking and freight industry is becoming a real concern for many companies. Approximately 60,000 drivers are needed to meet the demand for trucking services and the shortage could be upwards of 100,000 or more.
The driver shortage stems from several factors, including an aging workforce, high driver turnover rates (above 90 percent at present), reduced capacity as a result of regulatory changes, increasing freight demand, inflationary pressures, and “lifestyle priorities” that make competing industries more attractive. Because of these issues, industry experts are predicting that the numbers may nearly triple by the year 2026.
The leading issue is high turnover, which could be a result of poor wages and working conditions, such as being away from families for a long period of time. While the trucking industry boomed in the 1980s, now many people are retiring. Higher gasoline prices have also exacerbated the overall increase in freight costs, the industry follower pointed out. Gas prices have climbed to a national average of $2.88 per gallon, up from $2.49 at the start of the year, according to the motorists’ group AAA. Diesel prices also have jumped to $3.17, compared to $2.44 a year ago.
Read the full story at https://www.thestreet.com/markets/truck-driver-shortage-may-triple-by-2026-analysts-say-14650452.