Experts predict several factors will continue to play key roles in the trucking industry through the next five years. Economically, the industry must overcome hurdles such as record-high inflation, rising labor costs, and volatile fuel prices.
Many companies believe all they can do is buckle up for the bumpy ride, however there are alternatives to help them steer through the challenges.
The commercial trucking industry faces an extreme impact from the combined rising equipment, fuel, and labor costs. The rising price of lumber, steel, aluminum, and polyethylene increases the cost of new equipment. According to Heavy Duty Trucking, the cost of a trailer has increased from $30,000 to between $38,000 and $39,000.
How else has inflation affected the trucking industry? According to an analysis of data accrued by FTR Intel, rising demand spiked spot trucking rates upwards of 24%, compared to January 2021. Furthermore, freight spot load postings increased almost 44% in 2022. Even if you remove fuel from the equation, rates were up 18% year-over-year, along with rates for dry and refrigerated vans and flatbeds.
While freight volumes have softened they will remain elevated. Additionally, inflationary pressures related to future supply chain bottlenecks and world events such as the Russian invasion of Ukraine might further impact the industry.
Additionally, as gas price volatility continues, cash flow and fuel management become increasingly pivotal pieces of any company’s profit margin. New strategies need to be integrated into your business and accounted for in revenue projections.
So, how can a company like yours maneuver around these obstacles and keep moving forward with as little impact as possible?
One option is leasing vehicles with a trusted provider like Ryder, you get a fleet you can rely on, predictable monthly costs, built-in truck maintenance, and time to focus on your business. You also have access to substitute vehicles, preferred fuel rates, and protection packages. You won’t have to worry about acquiring, managing, and disposing of the vehicle. Flexible financing options, vehicle specification, repair, and preventive maintenance are also included.
A second option is a dedicated transportation solution, which Ryder also offers. With a dedicated solution you get trucks customized for your business that include the option of branding with vehicle wraps. Ryder also hires, manages, and trains drivers specifically for your business. You get real-time visibility of the freight with exception management through our digital platform RyderShare™. Through routing and scheduling, you’ll save money on fuel costs, empty miles, and ensure your goods are getting to their destination when expected.
There are many uncertainties in today’s transportation landscape. But one thing is for sure—you need to get your products to your customers. With Ryder, you can put the complexities of managing your fleet in today’s business environment behind you.