This trend is expected to continue into the future as more people turn to online shopping for their needs and wants. well. A reassuring sign, however, comes from the general merchandise sector, which started rapidly adjusting inventories downward during the fourth quarter. Electronic logging devices or ELDs are a type of equipment that will automatically record and log driving time for commercial vehicles such as semi-trucks. According to the latest Short-Term Energy Outlook from the Department of Energys Energy Information Administration, average retail diesel prices will remain at more than $5 per gallon through 2022 and into early 2023. In addition to these challenges and trends, the trucking industry in 2023 is also facing a number of regulatory changes. profitability for many retail companies that rely on trucking companies to Demand would likely continue to fluctuate with the market, which will continue the Rollercoaster effect that weve described in the past. The past few years have been extremely challenging for the US trucking industry. flow of freight. This complimentary CCJ webinar was sponsored by Bestpass. Most importantly, while US consumers are still shopping in times of high inflation, there are still mismatches between what shoppers want and what is available to purchase., OEMs continue to face part shortages going into 2023, especially in the microchip industries. This includes, pre-employment, violation reporting, return to duty reporting and annual queries. Get an on-demand recording and hear from economists and industry experts discuss the market forces, business conditions and supply chain issues that will impact carrier operations in 2023. The trucking industry has a lot of room to grow in the next few years, and you can take advantage of this opportunity by starting or expanding your trucking business. Another trend that is expected to shape the trucking industry in 2023 is the growing demand for sustainable and eco-friendly practices. result. Based on reports from the American Trucking Association (ATA) economists as well as researchers at the Americas Commercial Transportation (ACT) Research Company, we may have a higher tendency toward a U.S. economic recession in 2023, but they are hopeful it is short and mild. Much like a leaking pipe, the recovery efforts are still in transition to help stabilize economic conditions as quickly as Q2/Q3 of 2023 or may take as long as 2024. Truck industry statistics and growth forecasts for 2023 Robinson Alzate Senior Manager of Business Development at Trans4 Group Ltd Published Jan 10, 2023 + Follow Market volatility may. December 9, 2022 2023 ACT Expo fleet-focused sessions will cover zero-emission infrastructure, . Fuel: Whether you run heavy-duty trucks using diesel or light-duty trucks using gasoline, fuel is always a key topic when it comes to transportation annual outlooks and trends. The trucking industry accounts for $800 billion in gross revenue each year, making it a major contributor to our countrys overall economic growth and vitality. Review our OnSite Maintenance Program to see if its right for your needs. All the trucking industry trends are indeed likely to influence the entire US trucking industry in 2023. Penske On-Site Maintenance: Elevate your shop and your business. 4. the point where people now prefer to shop online than in-store. As consumers become more conscious of their impact on the environment, companies are being pressured to adopt more sustainable trucking practices. "FTR is not forecasting negative GDP" for 2023, Vise said, although that could change in its next forecast. In the past few years, trucking has seen a major shift in how its viewed. incurred when making these new additions. , improving the vehicles overall efficiency and functionality. Revenues include both public and private companies in the general freight trucking industry. As the industry grows, so too will the prices of trucking services. ", While credit card debt is up,Miller said there has not been a corresponding increase in delinquencies, adding, "we're actuallystill below pre-COVID levels, as hard as that is to believe. The industry experienced a decline in 2019, however, many believe that it is likely to turn around and experience a gradual increase due to new developments. However, the adoption of advanced technology and the incorporation of data analytics into fleet operations can turn the tables for the industry. We are in an environment where overall freight levels are not likely to change a whole lot over the year., Asked about why we still hear talk of a driver shortage in light of this capacity shift, Vise said, I believe what a lot of people call a driver shortage is, frankly, just the churn thats always there. As far as mergers are concerned, trucking companies are likely to explore two options: the first option is to merge with an existing trucking company and pool the resources together to stay afloat in the business. Companies will have to adjust their prices in order to keep up with the demand Trend No. optimize their productivity and gain a competitive edge. one of the bigger factors when accounting for trucking companies expenses. Hisotically, there's about an18-cent-per-mile difference between contract rates and spot rates, but Vieth said it hit 66 cents in October (and 69 cents in November, according to DAT). Trailers: If you use dry freight trailers in your operations, getting new trailers or adding to your trailer fleet will also be a challenge. Check out our EV blogs tolearn about EVsandif EV is right for your fleet. development within this space. Some of the top trucking technological advancements that trucking companies are looking to include are aerodynamics, electric vehicles, and platooning. With such major and unexpected changes, what does the future hold for trucking? service to make sure you are all set winding down the road without worrying market conditions do not improve. Clouding that question is the way record spot rates drove so many new-entrant motor carriers over the past couple of years. COPYRIGHT 2021 | BERGEY TRUCK CENTER | ALL RIGHTS RESERVED | DESIGNED & POWERED BY. Market sizes from 2018 to 2028 reflect industry trends and growth patterns. Read on to learn how On-Site Maintenance can help you solve your toughest fleet maintenance challenges. As a result, many other companies are anticipated to follow in their footsteps in the coming year. In spite of inflation, Vise said, real consumer spending is holding up, although spending on goods is fairly flat. a significant increase in the retail industry and a significant increase in the opportunities for those in the trucking industry. . Trucking Industry Trends All the trucking industry trends are indeed likely to influence the entire US trucking industry in 2023. Trucking profitability is at near-record levels but has slid each of the last two quarters. In much of 2020 and 2021, many . A market flip is expected to emerge in 2023. In conclusion, the trucking industry is expected to face some challenges as a shortage of drivers and regulatory changes, as well as opportunities as the adoption of autonomous trucks and sustainable practices. Companies had to build a lot of inventory to support the spike in demand for goods caused by the pandemic. and keep their business afloat. Fortunately, port congestion is finally easing. "If there's a silver lining here it's that the U.S. economy doesn't work without trucking.". Unless there is a large spike in the retail industry and a momentous increase in freight flow, this trend is not likely to change in the coming year. 1110 Pumping Station Road Nashville, TN 37210 Phone: 615.256.5755 Fax: 615.726.3568info@mwlginc.com. merchandise. The industry's strong fundamentals have FreightWaves researchers suggesting that it may spark a multiyear upcycle for trucking. The trucking industry overview is right before your eyes. Serving Car & Truck Fleet Management Professionals, Serving EV Intenders & Professionals In Commercial & Public Fleets, Serving Corporate, Executive, & Financial Managers Of Large Commercial Fleets, Serving Leaders In Fleet Mobility & Emerging Technology, Serving Public Sector Fleet Professionals, Serving Medium & Heavy Duty Commercial Truck Professionals, Serving Transit Bus, Private Motorcoach, & Passenger Rail Professionals, Serving School & Pupil Transportation Fleet Professionals, Serving Vocational & Service Fleet Professionals. different sector. It is likely another interest rate spike is coming; therefore, loans and credit lines will likely be considered a last resort in Q1 of 2023 (with the belief of refinancing as a prelude to any new contracts signed in the foreseeable future). This is compared to fixing a leaking pipe, once the pipe has been fixed only one part of the problem is addressed the remaining recovery transitions to water damage. Though the trucking industry is presently in a difficult market, some experts are eagerly anticipating 2023 and all it is likely to bring. TransPlus Systems Corporation 2022 - All Rights Reserved, Short-Term Energy Outlook from the Department of Energys Energy Information Administration, average retail diesel prices will remain at more than $5 per gallon, The American Transportation Research Institute, ATRI reported that 92% of its respondents adopted new safety technology, full list of devices that have been approved. and one that is sure to be seized in the coming months and years. This would then allow them to maintain their current position By 2023, the total freight tonnage is expected to grow by 21 percent, and revenue for the freight transportation industry is expected to rise 59 percent, according to the Ontario Trucking Association (OTA). To view or add a comment, sign in While market conditions remain broadly loose, there are increasingly signs of slowing supply a key to the bottoming process, according to experts. If youre like us, youre anxious to see what 2023 has in store for the trucking industry. function in 2023. The truck driving job market is offering great prospects for drivers in the next years. years, most of the country has experienced wide-scale development, with most As e-commerce grows, independent truckers and brokers have an opportunity to capitalize on these new markets by offering shipping logistics services for e-commerce companies. While the government is poised to pour billions of dollars into infrastructure improvement, Miller said that would be unlikely to offset any potential losses from housing starts. Intrigue Services Worldwide. them are beginning to incorporate 'smart' technology to improve the vehicle's Trucking Industry Forecast For 2023. owner October 13, 2022 Currently, at least three thousand truckers are unemployed due to the One of the biggest challenges facing the trucking industry in 2023 is the ongoing shortage of truck drivers. Many trucking companies have been switching from diesel powered trucks to natural gas powered ones due to their lower emissions and fewer maintenance costs. Click here to learn more about our job opportunities. As the e-commerce industry is booming and expected to continue growing in This industry relies on the skill and dedication of truckers to transport The trucking industry transports around 11 billion tons of freight every year, which is a major part of the US economy. This unprecedented congestion prompted intervention from the Biden administration to help reduce the strain. The e-commerce boom is also driving significant change in the trucking industry. This specific blog post will provide details on the top trucking trends in 2023 and how they can possibly influence the industry we call home. We also may expect to see a higher emphasis on the creation of electric semi-trucks to avoid the high fuel prices. An end-to-end TMS software tailored to your needs. For comparison, in Q3 2019 this rate was 2.62%. to traverse through parts of the country that were previously inaccessible. largely manual and analog process has been modernized and streamlined thanks to We kind of have to redefine what a recession is, he said. A Comprehensive Fleet and Driver Technology Solution. In fact, theres a whole new list of trends likely to appear in 2023 and influence the industry as a whole. Want to join the team? Trucks are now being equipped with advanced fleet technology, improving the vehicles overall efficiency and functionality. For 2023, it is expected that capacity issues will decrease as companies plan their movements better and allocate their trucks where they are needed the most. In 2019, truckers had to further decrease their prices due to a shortage of jobs. Over the last decade, the e-commerce industry has witnessed a tremendous boom. Over the years, fuel costs have only risen because of the limited nature of Preventive Maintenance For Commercial Trucks. for many retail companies that rely on trucking companies to transport their To meet this demand, companies are investing in new technologies and innovative delivery options, such as drones and robots, to ensure that they can deliver goods as quickly and efficiently as possible. One of the biggest challenges facing the trucking industry in 2023 is the ongoing shortage of truck drivers. The growth of online shopping has led to an increase in the number of small, individual orders, which has created new challenges for trucking companies. industry by aiding companies that are struggling and may go under if current 2023 Randall-Reilly, LLC. The first way is through the use of more efficient trucks and engines. The number of truck driver jobs will increase significantly in 2023 due to several factors such as increased construction activity, greater demand from retailers, higher freight rates, and rising consumer spending. ATRI reported that 92% of its respondents adopted new safety technology in the last three years. sector. within this industry. Theyve been forced to navigate the dwindling spot rates that now threaten to drag contract rates downward for the foreseeable future.(FreightWaves, 2022). Comments are moderated and may not appear for 24 hours or more. While it had its challenges, it was a year that we all came together to learn, to grow and to get ready to do it all over again. Avery Vise, VP, Trucking, said the theme of the webinar was uncertainty, and that is all about the economy.. Luckily, TransPlus' Fleet Manager software provides ELD HOS integrations to ensure compliance with the mandate, while providing useful, real-time HOS data to your dispatching team.. Advanced Clean Transportation (ACT) Expo 2023 Agenda Announced. Starting in October we have started to lose a pretty substantial number. Preliminary numbers for last month show the industry lost more carriers in December than in any month on record with the exception of December of 05, he said. Changes in Pricing 7) 7. Data analytics has helped boost the overall efficiency of the trucking companies that they lacked before. So, lets take a look at our trucking industry forecast for 2023. forced to merge with other companies in order to survive. Transflo Intelligent Automation leverages AI and machine learning to capture and process valuable, real-time freight data to automate every day tasks. Unfortunately, hiring and retaining drivers continues to be challenging for many trucking companies. December numbers show the CPI rose 6.5% in December from a year earlier, which was down from 7.1% in November. Overcapacity - freight companies began . Clearly a lot of those drivers were absorbed into larger carriers and we saw a shift of capacity from the spot market to the contract market, Vise said. The report provides insights and data on key . Miler said while there indeed has been an increase from the all-time low of 1.55% in Q3 2021, he believes more significant is that the delinquency rate remains below pre-COVID levels and there's not been an upward jump like in Q4 2008 or Q1 2009, "when the Great Recession was at its worst.". Source: U.S. government . At Drive M&W, we help our drivers stay in the know and offer flexible schedules to help you select what work you can realistically be involved in. It is now one of the most successful 4: Making America's transportation network more resilient. Thankfully, there are so many solutions present for this problem that the trucking industry never had in the past. Let's take a look at the challenges facing trucking companies and the tactics you can use to attract, hire, and retain drivers for your business. The concept of real-time tracking has allowed many trucking companies to keep track of their shipments, vehicles, and drivers. As e-commerce continues to grow, the trucking industry will have to grow along with it to meet the demand. Drivers: Fewer trucks in a fleet could mean an easement of the driver shortage for 2023, but this may be short-lived relief, given the forecasts of driver retirement rising in the next 2 years. One example of how technology has improved the trucking industry is through fleet management systems. In recent years, the industry has faced some challenges such as rising fuel prices, but despite these obstacles, it still remains an extremely popular choice for drivers and business owners who want to make money while working on their own terms. At the same time, it has helped them communicate with the customers in a better way, updating them about the consignment status. application of technology that is now being experienced. If youre looking to learn more about the mandate and how to prepare, check out our full breakdown here., Getting your fleet ready for ELD compliance is crucial if you want to avoid disruptions to your operations and fines. Discover how Trans Plus has helped companies. The federal government has proposed new regulations that would increase the minimum wage for truck drivers, as well as impose new safety standards on the industry. Well, today, were going to look at some things that are likely to happen in the trucking industry over the next few years. Influence of E-Commerce; 1.3 3. And with the current state of affairs in the world, it doesnt look like fuel prices are going to be decreasing anytime soon. streamlined. industry. Premium Statistic U.S. trucking industry - operating revenue . Based on reports from the American Trucking Association (ATA) economists as well as researchers at the Americas Commercial Transportation (ACT) Research Company . Subscribe to our newsletter and get latest updates & news. that you could plan more for your trucking in the year to come. And when it comes to keeping insurance premiums as low as possible, there are safety technologies that can help. Autonomous trucks have the potential to greatly reduce the need for human drivers, and many companies are investing in research and development to advance the technology. 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