Driving America's Economy: The History of Trucking
The shipping industry is the backbone of the country's economy. Without dedicated and talented truck drivers, everything about commerce would grind to a halt. But it wasn't always like that, and in previous centuries, people got supplies and goods in different ways.
Let’s take a look at the history of trucking and explore how the trucking industry has changed and evolved over the last 10 years.
When Did the Trucking Industry Begin?
The trucking industry wasn’t always the massive economic factor it is today.
Before the 1900s, trucks weren’t used for shipping freight. It was only in the 1920s that trucks were finally equipped with pneumatic or air-filled tires, which made driving much easier and more comfortable (and allowed drivers to travel at higher speeds).
Motorized trucks became more available and practical from the 1910s to the 1920s. Gradually, railroad companies started losing shipping business and contracts to trucking companies. Railroad transportation was still cheaper, but freight service by truck was more convenient and faster in terms of timing.
Things changed with the invention of the fifth wheel in the 1920s, which allowed truckloads to be picked up and dropped off much more rapidly. The semi-trailer also became more popular in the 1920s, an important innovation in freight loading and unloading.
Freight trucks began to be used more extensively in World War I. Later, in the 1950s and 1960s, the construction of the Interstate Highway System made the trucking industry grow astronomically, as freeways finally linked most major cities across the US.
Once the 1960s hit, trucks with refrigerated trailers became commonplace. These allowed trucks to transport frozen or temperature-sensitive items from place to place without customers or clients relying on refrigerated railcars.
Truck driving from New York to LA became commonplace, especially with the development of organizations like the American Highway Freight Association and the Federated Trucking Associations of America and new truck stops around the country.
In the 1960s and 70s, truck drivers became more populous, and the industry gained significant bargaining power. Truck drivers even participated in strikes to protest the rising fuel costs during the energy crises of 1973 and 1979.
Congress granted their requests, and the Department of Transportation (DOT) began implementing regulations regarding diesel engines, weight limits, and more for semi-trucks in the 20th century.
The deregulation implemented by the Motor Carrier Act of 1970 helped trucking dominate the freight industry, especially as big-box stores like Target and Walmart came into power. With the big-box stores' arrival, many more goods needed to be transported to many more stores quickly.
That’s where trucking truly gained control of the freight shipping industry. Trucks became the go-to for delivering or shipping loads from big-box stores to smaller locations. The Interstate Commerce Commission or ICC and the Motor Carrier Act of 1980 combined to give long-haul truckers and convoys more power in the transportation industry.
Today, truck shipping is still the most used kind of freight shipping in the entire country, even accounting for rail. While many goods arrive in the US via ship, most goods are then transferred to a truck to be driven to their final destinations.
These days, there are over two million heavy truck drivers around the country. According to the Bureau of Labor Statistics, the industry is growing by approximately four percent, and the average truck driver makes?around $48,310 annually . It’s a good job with ongoing work and ample opportunities for professional growth.
How Has the Trucking Industry Changed?
In the last 10 years, the trucking industry has changed dramatically from its origins.
For example, implementing the ELD or electronic locking device rule was congressionally mandated by the Federal Motor Carrier Safety Administration. This rule was implemented in 2016 and made it much easier and faster for various carrier companies to manage, track, and share the records of their drivers.
By moving all of this log work to the digital realm, paper records were effectively replaced for much greater efficiency. More recently, the truck driver shortage has impacted the industry and the economy. According to the ATA, the industry?needs tens of thousands of new drivers ?to meet the increased demand for freight services around the country.
Because the shortage has continued, many organizations have seen supply chain impacts. Trucks sit still for longer,?trailers ?are often loaded to capacity, and merchants must wait longer for their goods to reach store shelves. Of course, the shortage was exacerbated by the COVID-19 pandemic in 2020.
More positively, new trucks are much safer than their older counterparts. Many modern trailers and trucks are equipped with new safety systems and technologies, including automated systems to help drivers operate their vehicles safely. Some example safety technologies include backup cameras, lane assist features, and more.
Lastly, onboard monitoring is now much more normal and expected. Onboard monitoring tracks truckers as they move across the country, and carrier companies often utilize such systems to optimize driving routes, ensure driver safety, and track deliveries in real time for clients or merchants.
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How Does the Trucking Industry Impact the Economy?
Carrier companies ?in the trucking industry impact the modern economy in various ways. It's no stretch to say that without the modern trucking industry, the economy as we know it would not exist.
Transports Raw Materials for Products
Truckers transport raw materials that manufacturers use to create the products that end up on store shelves. Raw material shipping accounts for a?huge proportion of shipped goods ?daily, ranging from plastics to metal materials to foodstuffs to corn oil.
That raw material transportation helps to form the backbone of economic and manufacturing activity throughout the country. Without it, companies would be unable to manufacture the products they sell to consumers.
Many raw materials arrive by sea, then are transferred to trucks to manufacturing plants or industrial facilities. Many of those same trucks then pick up the completed products made from those raw materials to deliver them to big-box stores or retail locations.
Allows Businesses To Expand Reach
Furthermore, the trucking industry impacts the economy by letting businesses expand their reach to new regions or states. With diverse yet comprehensive trucking networks, a company can open up a new retail store in a new state or on the other side of the country and still expect shipments of the same products and materials using trustworthy trucking companies.
In this way, organizations can compete in the American capitalist system and expand whenever necessary without worrying about being unable to get their core products to consumers in the new market.
This economical option is available even in small towns with smaller carriers, which sometimes form dedicated trucking relationships with retailers, acting as committed shipping specialists to ensure that smaller organizations can deliver their goods at reasonable prices.
Transports Refined Oil
One of the biggest things the trucking industry does is transport refined oil to consumers, gas stations, and companies. Refined oil transportation is important so that people have gas to put in their cars and organizations can make the products they sell to consumers.
While this aspect of transportation has declined recently due to supply chain issues, it’s still an integral part of the trucking industry. It makes up a major proportion of its total transported freight.
Provides Bulk Food for Restaurants
The restaurant industry wouldn’t exist as we know it without the trucking industry. That’s because truckers ship the bulk food and ingredients necessary to serve hungry customers across the country every day.
This is especially important because many restaurants rely on fresh or frozen foods to provide customers with their expected menus. When a customer in Denver wants fish, they only get it because a trucker shipped fresh fish from a port city into the heart of the country.
The Bottom Line
As you can see, the trucking industry is here to stay. Even with potential advancements like automated driving assistance, the American economy will still need skilled truck drivers to get goods from place to place.
That’s why it’s a good time to upgrade your career with RPM. At RPM, we support carriers just like you by offering intuitive mobile assistance, comprehensive support, and other benefits.?Contact us today .
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