News
Truck Freight Volumes Poised to Climb in the Coming Years
New projections from the American Trucking Associations (ATA) reveal a significant increase in truck tonnage, with estimates showing a growth to 14.2 billion tons by 2034.
According to ATA Chief Economist Bob Costello, this forecast solidifies trucking’s position as the dominant force in the U.S. freight industry. In 2022, trucks moved an impressive 72.2% of all freight tonnage and contributed to a remarkable 79.2% of revenue.
Trucking industry expects significant growth, accounting for majority of freight tonnage.
According to forecasts, overall truck tonnage is predicted to increase from 11.3 billion tons to 14.2 billion tons by 2034. This represents 72.4% of freight tonnage in 2023 and 72.6% at the end of the forecast period.
The revenues of the trucking industry are expected to soar from $1.01 trillion in 2023 to $1.51 trillion in 2034, making up a substantial 78.8% of the freight market.
Meanwhile, the rail industry is also predicted to experience growth. Rail intermodal revenues are expected to rise from $21.7 billion in 2023 to $35.2 billion in 2034. However, as coal and bulk petroleum shipments decline, rail carload tonnage will decrease from 11% to 10.1% of total freight by 2034.
In addition, air cargo tonnage is projected to increase from 17.6 million tons this year to 23.7 million tons in 2034. Pipelines will also see a slight growth in their share of freight tonnage, rising from 9.8% in 2023 to 10.4% in 2034.
“Knowing where our industry and economy are headed is critical for decision makers,” said ATA President and CEO Chris Spear. “This Freight Forecast should be top of mind for policymakers in Washington, Sacramento and wherever decisions are being made that affect trucking.”
Trucking Industry Forecasts Show Signs of Recovery Amid Ongoing Challenges
After enduring a period of decline, the trucking industry is slowly starting to see improvements. Truck operating costs, however, still outweigh spot rates, with contract rates continuing to decrease year-over-year. Despite this, there is a margin of positivity.
Good news can be found in consumer spending data, as real spending on goods is on the rise after a two-year period of stagnation. The third quarter of 2023 saw a 0.5% increase in spending compared to the previous quarter, and a 2.3% increase from the same period last year. Specifically, durable goods, especially in the automotive sector, were the driving force behind this growth. Consumers are now opting to save less and spend more, with the personal saving rate dropping by 50% since before the pandemic.
Another positive development is the steady increase in truckload demand, which has finally turned positive year-over-year after nine months of decline. According to Uber Freight’s report, truckload demand hit its lowest point in April 2023 and has been steadily increasing since then. In the third quarter, it rose by 1.2% compared to the previous quarter and remained stagnant year-over-year. On the supply side, there was a 0.5% decrease in Q3, but it still remained 1.4% higher than the previous year. It’s worth noting that the manufacturing economy continued to contract for the 12th consecutive month, according to the ISM Purchasing Managers Index.
Employment in the trucking industry has faced challenges as well, with a decline of 24,000 jobs (-1.5%) in the third quarter of 2023, largely due to the Yellow bankruptcy. In October, another 5,000 jobs were lost, resulting in a 1.7% decrease compared to the previous year. Long distance truckload employment, which serves as a key indicator of spot rates, has also been on a downward trend but remains only 1.1% below its peak.
In the less-than-truckload (LTL) sector, tonnage continued to decline in the third quarter, although there were signs of improvement among individual carriers, thanks to the closure of Yellow. Overall, LTL tonnage and shipment count is expected to remain at lower levels for the rest of this year and into the next, and the average shipment size is also decreasing.
Source: CCJ Digital
Business
Supply Chain Turmoil Hits Drivers as Costs and Shortages Persist
Supply Chain Turmoil Hits Drivers as Costs and Shortages Persist
“Due to the exorbitant cost of shipping, we have had to raise prices to our customers as well as order eight months’ worth of inventory, eight months in advance.” — Hanna from The Crown Choice
The anticipated recovery year turned into ongoing supply chain disruptions, with raw material shortages and factories in China operating on limited schedules. The cost of shipping containers has skyrocketed, impacting small businesses and their ability to order inventory effectively.
What This Means for Your Wallet and Your Miles
Shipping costs are at an all-time high, which could mean higher operating costs for you as a driver. If you’re hauling goods for small businesses, expect them to pass these costs along in the form of higher order rates or delayed payments.
Fuel costs are also likely to be affected as ripple effects from supply chain disruptions impact pricing. Keep an eye on fuel surcharges and budget accordingly to avoid surprises in your expense sheet.
If you’re relying on contracts with big retailers, be prepared for potential delays. Mass retailers are struggling with empty shelves, which might lead to fewer loads as they adjust to the new normal.
Load availability may shift as businesses look to diversify their supplier base. Stay flexible and ready to adjust your routes based on changing demand and supply scenarios.
How are shipping costs affecting my job?
High shipping costs are driving businesses to increase prices, which may lead to fewer shipments or altered contracts. Be prepared to adjust to these changes.
Will this affect fuel prices?
Yes, supply chain disruptions can influence fuel prices, so keep an eye on trends and potential surcharges that may affect your operating costs.
What about load availability?
Load availability could fluctuate as businesses adjust their supply chains. Flexibility in routes and contracts will be crucial to maintaining steady work.
How can I prepare for potential delays?
Keep in close contact with your logistics partners and clients. Understanding their challenges can help you anticipate delays and adjust your schedule accordingly.
Is there anything I can do to mitigate these costs?
Consider renegotiating rates and contracts to account for increased costs, and explore new markets and clients who may offer more stable opportunities.
Business
Key Strategies for Effective Remote Worker Time Management
Key Strategies for Effective Remote Worker Time Management
Remote work has become increasingly popular in recent years, thanks to technological advancements and changing attitudes towards work-life balance.
The article discusses various strategies and tools to enhance time management for remote workers. It covers setting expectations, choosing appropriate time tracking tools, and maintaining accountability to improve productivity in a remote work environment.
What This Means for Your Wallet and Your Miles
For drivers who also manage remote workers or work remotely themselves, the right time tracking tools can streamline operations and improve productivity. This could potentially reduce overhead costs and increase efficiency.
Setting clear expectations regarding availability and communication can help avoid misunderstandings and reduce downtime, ensuring you stay on top of your tasks and deadlines.
Establishing a routine can help you make the most of your work hours, allowing more time for driving or managing logistics without affecting performance.
Regularly reviewing and adjusting your time management practices can help identify inefficiencies, allowing you to make changes that enhance productivity and ensure a steady flow of income.
How can I improve time management for my remote workers?
Set clear expectations for work hours and communication, use effective time tracking tools, and establish routines to optimize productivity.
What are some recommended time tracking tools?
Popular options include Toggl, BuddyPunch, RescueTime, and Harvest, each offering different features suited to various needs.
How often should I review my time tracking practices?
Regular reviews, ideally monthly, can help identify areas for improvement and ensure your practices remain effective and aligned with goals.
Why is accountability important in remote work?
Accountability helps maintain productivity and motivation, ensuring that tasks are completed efficiently and on time.
What should I do if my current routine isn’t working?
Be flexible and willing to adjust your routine or try new tools and strategies to find a setup that maximizes productivity and fits your work style.
CDL Training
Ohio Pursues Legal Action Against Trucker for Alleged Toll Skipping
An Illinois-based trucker, Moath Musamih, from Orland Park, has been formally indicted in Ohio on grand theft charges for allegedly avoiding nearly $22,000 in turnpike tolls. The indictment, filed on April 21 by a Williams County grand jury, accuses Musamih of a fourth-degree felony relating to unpaid tolls, with potential penalties including up to 18 months imprisonment, a $5,000 fine, and restitution.
Prosecutors assert that Musamih’s truck was monitored with open-road tolling technology for close to two years. Despite receiving multiple payment notifications, the tolls remained unpaid. The indictment also includes a clause to confiscate the 2012 Freightliner Cascadia allegedly used in these offenses.
County Chief Investigator Andrew Skiles noted that the Ohio State Highway Patrol had been keeping tabs on Musamih for some time due to the unpaid tolls. According to Skiles, Musamih is an owner-operator whose vehicle, reportedly registered under his wife’s name, was regularly tracked traveling extensive distances on the Ohio Turnpike using an E-ZPass transponder.
An Ohio State Highway Patrol officer encountered Musamih at a service plaza on eastbound Interstate 80, where an incident report was filed for “Theft by Deception.” The report included accusations of theft without consent and engaging in corrupt activities.
Williams County Prosecutor Katherine Zartman opted for criminal proceedings against Musamih due to the significant total of approximately $21,991 in unpaid tolls over an extensive period from April 2024 to April 2026. The decision to pursue a fourth-degree felony charge was influenced by Musamih’s alleged repeated offenses and the proposed forfeiture of his semi-truck as it was deemed contraband linked to the criminal activity.
The Ohio Turnpike and Infrastructure Commission, through its advanced open-road tolling system launched in April 2024, identified Musamih. Executive Director Ferzan Ahmed emphasized the aim to maintain optimal conditions on the turnpike while highlighting the challenges posed by companies that fail to settle their toll liabilities, despite numerous reminders and collection attempts.
In a broader context, the commission recently disclosed a list of 315 trucking companies accused of evading $5.2 million in tolls over the past two years, indicating a widespread issue with rogue operators.
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