The trucking industry is always on the move, with ever-changing trends, statistics, and outlooks each year. To stay competitive, truckers and owner-operators need to be on top of these changes. That makes this blog post a crucial guide for truckers like you who want to get ahead of the trucking industry trends of 2024.
Here, we will give you a quick preview of the numbers to help you forecast your business’ trajectory in the freight industry. Read on to see how much catching up you need to do!
US trucking industry statistics
For years, the freight industry has been one of the most important backbones of the US economy. It accounts to billions of dollars in revenue and the constant movement of goods across the globe.
- In the past year or so, here are the numbers you need to know:
- About 72.6% of America’s freight is moved through trucking.
- In 2022, shipments from trucking accounts for about $940.8 billion of gross freight revenues. This is about 80% of our country’s total freight bill on the same year.
- Over 11.46 billion tons of shipment freight were transported by trucks in 2022 alone.
- About 8.4 million people are employed in jobs related to trucking in 2022, which doesn’t include self-employed individuals.
- There are about 3.54 million employed truck drivers in 2022, which is roughly 1.5% higher from 2021.
- In 2021, there are 13.86 million combination and single-unit trucks registered in the US.
- Also, in 2021, commercial truck operators paid a whopping $29.12 billion in state and federal fuel taxes.
- The last-mile and same-day delivery markets were projected to grow by as much as 21.2% in 2024. All thanks to the massive increase in online shopping spending.
- In terms of market size, Less-Than-Truckload or LTL has the biggest share at $229 billion in 2022. Meanwhile, general freight recorded a revenue of $91.4 billion on the same year.
- According to expert projections, the total freight tonnage between 2021 and 2032 will increase by as much as 28%. From 15.1 billion tons, this truck industry statistics are expected to reach at least 19.2 billion tons in a span of a decade.
Latest trucking industry trends
All truckers need to stay abreast with freight trucking industry trends to maintain or boost their business. So, whether you’re a beginner owner-operator or someone managing an established fleet, here are the trends you should know:
1. Invoice factoring
In the freight industry, long payment cycles is almost the norm. It’s typical for shippers to take 30, 60, or even as long as 90 days to settle their outstanding invoices. For truckers, this could easily lead to financial strain that will impact their operations and cash flow.
Instead of going through this struggle or taking yet another bank loan, more and more truckers are partnering with a factoring trucking company.
With a factoring company, truckers can simply sell their pending invoices and receive immediate advances. For example, here at Factoring Express, we can advance as much as 97% of your total invoice amount.
The best thing about factoring for trucking is that the factor, us, will take over the collections process. So, while you maximize your instant capital, we chase your client for payments. This way, you can focus on hitting the road and delivering more loads – boosting your business’ cash flow even more.
Take note that factoring isn’t a type of loan. It doesn’t incur interest, and there is tedious paperwork involved. In fact, if you sign up with us now, your account can be approved in as little as 24 hours and your invoices could be funded within 48 hours.
2. AI integration
It’s no surprise that artificial intelligence (AI) has also found its way in the trucking industry. After all, automation is not a newcomer in the trucking business, though modern AI made it even more convenient and accessible.
For example, an AI system can analyze routes, load availability, weather, road conditions, and more to help you assess which shipment is the most ideal. At the same time, there are AI systems that analyze your fuel usage and emissions, which helps keep your operation clean and efficient.
Above all, AI and cloud computing save truckers from the chore of keeping physical documents and receipts all the time. Nowadays, a digital trail allows them to manage their paperwork faster without having to rummage through a stack of paper.
3. Advanced Driver Assistance Systems (ADAS)
The Advanced Driver Assistance Systems or ADAS is one of the newest innovation in truck technology. It redefines driving efficiency and safety, which are two of the most important aspects of the freight industry.
Some of the key highlights of ADAS are lane-keeping assistance, emergency braking, and cruise control through modern sensors that aren’t used in older truck models.
On top of that, ADAS also equips trucks with a 360-degree camera system and AI-driven analytics to assess road conditions. All these, when combined together, create a powerful system to minimize the risk of accidents on the road.
4. Increased focus on cybersecurity
As the Internet of Things (IoT) takes over almost every aspect of our lives, so is the threat that comes with it. Specifically, truckers are vulnerable to cyber threats as their operation relies heavily on internet connectivity.
Some of the widespread cybersecurity threats among truckers include phishing scams, ransomware attacks, data breaches, and unauthorized access to financial data. All these can lead to financial losses, not to mention compromising the reputation of your trucking business.
In this case, the trend in the trucking industry is toward strengthening cybersecurity to block potential attacks. This is why we always remind truckers to only use secured and encrypted systems for their operations, especially when it comes to handling client data.
5. The rise of electric trucks
While it’s yet to be a widespread trend, electric trucks are gaining traction more than ever. It’s now seen to hit the roads more in the coming years as an eco-friendly and clean alternative to traditionally fueled trucks.
In this case, you should expect to see more discussion about electric trucks this year and in the future. Who knows, you might be getting one for your fleet soon!
6. E-commerce integration
As the demand for online shopping gets bigger and bigger, the surge in trucking services also do. So, if you’re looking for a good opportunity to expand your operations, last-mile delivery might be a viable option.
Nowadays, there’s a growing number of trucking companies partnering with e-commerce giants to deliver their goods to customers. And unlike other loads, those related to e-commerce have a steadier demand and get even more profitable toward the holidays.
7. Traveling with pets
Driving for days on end can be exhausting and lonely for drivers. So, it’s not surprising that about 56% of US truck drivers travel with their pets for companionship and emotional support.
Cats tend to be one of the favorite travel companions of truckers since they require less attention than dogs. Also, cats tend to be low maintenance, require less space, and have good self-cleaning habits.
Still, that doesn’t mean dog lovers in the trucking industry can’t bring their Fido with them. Small to medium-sized breeds are also a popular choice among truckers who want companionship and a furry buddy to keep them active during long routes.
8. Women in trucking
For a long time, the trucking industry has been dominated by men. But in recent years, women have also made successful careers in the freight industry, whether as drivers or in other roles.
According to statistics, about 12% of professional truck drivers are women, and 55% of North American truckers believe that freight is a safe industry for women.
Here’s another surprising finding: data says that female truck drivers hit the roads safer than their male counterparts. According to the American Transportation Research Institute, men truck drivers are 76% more likely to receive a seat belt violation and 14% more likely to get in a crash than women drivers.
So, if you’re a woman thinking of starting a career as a truck driver, this is the sight you’ve been looking for!
Biggest trucking challenges to watch out for this 2024
While the freight industry is ever-growing, it still comes with some pains and aches. Here are some that you need to watch out for this year:
1. Unpredictability is still around the corner
In 2024, freight remains a cyclical and seasonal industry for most aspects. This is why truckers like you should find ways to keep up and endure low demands during off seasons.
You can start by diversifying your loads and routes as well as optimizing your fuel economy. Aside from that, you should analyze your drive time and routes to ensure that you’re not wasting resources on unnecessary miles.
2. Safe parking spaces
It’s no secret that the trucking industry has been mired with parking-related incidents over the past years. Aside from that, there isn’t enough parking space for the growing trucking population in the United States.
In fact, the US Department of Transportation (USDOT) believes that there’s only one parking spot available for every 11 trucks. This means that during peak seasons, it can be a big challenge for drivers to find a safe place to rest in between their shifts.
At the same time, it exposes them to more hazards as some would be left with no option but to park on narrow roads or poorly lit spots.
3. Driver shortage
Although there are good opportunities in the freight industry, some companies still feel the lingering effect of driver shortages. So, if you’re planning to expand your route and fleet, it’s important to focus on attracting reliable drivers and retaining your current workforce.
Overall, drivers are attracted to companies that offer a good work-life balance as well as a sizeable compensation, much so for challenging routes.
Always remember that it’s the drivers that keep the wheels turning. This is why you should also invest in their welfare if you want your business to thrive.
4. Supply chain disruptions
While there hasn’t been a trucking mishap to match the great Suez Canal disruption, you still never know when delays can happen.
Take note that global events can have a ripple effect on drivers, which may not be felt right away. For example, natural disasters and geopolitical tensions can all put a stop on your trucks for a substantial period.
5. Fluctuating costs of fuel and replacement parts
Year in and year out, fuel costs have always been one of the key challenges among truckers. It’s ever-changing and we’ve seen a massive surge in the last 3 to 4 years.
Unfortunately, experts project that it will continue to rise until 2030.
In fact, research found that the cost of trucking has hit a 15-year high back in 2021. It reached a 12.7% increase compared to 2020, mainly due to driver wages, fuel costs, and truck payments. Aside from that, the COVID pandemic also made things worse – and more expensive – for truckers to deliver their loads.
6. Regulatory compliance
The freight industry is a heavily regulated sector, and compliance remains a challenge for many truckers nationwide.
Specifically, truckers struggle with Hours of Service or HOS regulations, which limit the number of hours each driver can spend on the road. This is to prevent fatigue and the risk of encountering road accidents.
Failure to comply with this regulation can lead to fines of about $11,000 per violation. The repeated violation also spells bigger trouble for trucking companies.
Aside from that, many trucking companies also have to deal with drug and alcohol testing woes. This is in line with the Federal Motor Carrier Safety Administration (FMCSA) rules.
This is a mandatory requirement for all CDL drivers to ensure that they are fit to operate a truck and be on the road. Violations also lead to hefty fines and serious penalties.
Keep up with trends in the trucking industry through Factoring Express!
Are you ready to bring the new trends to your trucking business? You can get started by searching a factoring company near me like Factoring Express!
With Factoring Express, you can revolutionize your cash flow with instant invoice funding, so you no longer have to wait for months to receive payments. At the same time, we also offer fuel cards, fuel advances, truck dispatch services, and accounting to streamline your operations.
By partnering with Factoring Express, you’ll get a competitive edge in the industry through a reliable cash flow. Contact us today to learn more!
