Costs overtake driver shortage as biggest wrench in gears of trucking firms

One-third of business owners now see higher overheads such as fuel, equipment, insurance and labour as their biggest challenge, results from a Trucking HR Canada survey show.

The outcome marks the first time in a decade that a dearth of drivers has not been at the top of companies’ worry list, the group said.

“We have seen a bit of a slowdown, so the hiring of drivers hasn’t been that front-and-centre concern that we’ve seen over the last many years,” said chief executive Angela Splinter in a phone interview.

“I think it’s a reflection of what we’re seeing in our economy right now.”

Nonetheless, labour woes remain significant, as vacancies — including those behind the wheel — will top 40,000 by decade’s end unless more support to attract and keep workers is provided, Splinter said.

Source: https://www.supplypro.ca/costs-overtake-driver-shortage-as-biggest-wrench-in-gears-of-trucking-firms/

I have worked with trucking industry for over 30 years. Margins are very thin as such route optimization plays a key role with managing the overall operations for trucking.

1. Oil prices continue to fluctuate - https://www.mrt.com/business/oil/article/crude-oil-prices-18763675.php
2. Debt / margins - https://www.ccjdigital.com/business/article/15665467/fleet-earnings-q4-2023-carriers-feel-the-impetus-of-freight-market-recession
3. Performance - https://finance.yahoo.com/sectors/industrials/trucking/
4. ESG costs / adoption - Technology is still a challenge for trucking sector to move to net zero. https://www.freightwaves.com/news/sec-backs-off-on-requiring-companies-to-report-scope-3-emissions
5. Decision optimization - https://www.synox.io/en/smart-transport/geolocation-in-freight-transport-thanks-to-iot/ Synox
6. Diesel prices - https://www.globalpetrolprices.com/forecast.php
7. Trucking / Automated warehousing - https://www.selecthub.com/warehouse-management/building-automated-warehouse-system/
8. Smart cities / https://earth.org/top-7-smart-cities-in-the-world/
9. Mergers / Acquisitions - https://www.truckingdive.com/news/arcbest-seeks-shareholder-approval-lower-threshold-sale-merger/709331/
10. Technologies - https://prepass.com/blog/using-technology-to-solve-truckings-top-10-industry-concerns/

Paul Young CPA CGA is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industries and geographies for the past 8 years. Paul is an SME on how best to leverage macro and micro indicators as part of the integrated planning and reporting cycle.

[email protected]

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Courses - https://www.dhirubhai.net/posts/paul-young-055632b_activity-7163302861974519809-ryf3?utm_source=share&utm_medium=member_desktop

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Blog – Transportation – Analysis and Commentary – January 2024 - https://www.dhirubhai.net/pulse/transportation-sector-analysis-reports-january-2024-paul-young-nxgvc/?published=t

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Blog – ESG – Hydrogen – California refueling stations - https://twitter.com/paulyoungcpa/status/1757046716795126109

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Stock Market - Australia - WE February 9, 2024 - https://www.dhirubhai.net/pulse/stock-market-australia-we-february-9-2024-paul-young-wljec/

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Blog – Fiscal Update -? CBO – January 2024 - https://www.dhirubhai.net/pulse/monthly-budget-update-cbo-january-2024-paul-young-u1sxc/

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Blog – Stock Market for WE February 9 2024 - https://www.dhirubhai.net/pulse/stock-market-we-february-9-2024-paul-young-vsxac/?published=t