The trucking industry accounts for over $700 billion in revenue every year in the United States alone. Over 80% of all goods that are consumed every day by Americans are transported by trucks. While truckers and the trucking industry are under constant scrutiny, the fact is that without freight the country would stop. With the impending trucker shortage, there has been an increase in speculation on the country’s dependence on trucks. But what exactly would happen if one day the trucking industry collapsed?
Food: Thank the Trucking Industry for Eating
In the event of a trucking industry collapse, food supplies would be affected almost immediately. While larger stores would see the most immediate impact from a depletion of perishable goods, smaller stores would run out of all supply very quickly. The American Trucking Association (ATA) estimates that significant shortages would occur in as little as three days and that the shortages would be expedited by consumer panic.
Healthcare: Trucks Bring Medical Supplies
Perhaps the most disastrous impact would be on the healthcare industry. Many hospitals and care providers only order supplies, such as syringes and bandages, on an as-needed basis, so in the event of a trucking industry collapse, critical supplies would be depleted in a matter of hours. Equally as catastrophic, pharmacies would soon run out of life-saving medications.
Way of Life
The little things that we take for granted would soon be considered long-gone luxuries if the trucks disappeared. There would be no one to deliver fuel to gas stations, and automobile transportation would become impossible within a week. With no means for transportation, people would be unable to access work, run errands or attend school. At the same time, garbage would start to pile on the sides of streets and would quickly reach an overwhelming level, especially in heavily populated areas. While gross, more concerning is the fact that this would provide an ideal breeding ground for disease. Even banks would suffer, as they run out of cash and are unable to process transactions.
The Takeaway: The Trucking Industry is America’s Backbone
It’s important to be reminded every now and then of how crucial the trucking industry is. Although a trucking collapse overnight is highly unlikely, the industry faces incremental problems like driver shortages and limited capacity. To avoid disruption we need to make the entire process more efficient. And to treat truck drivers as important as they are: the backbone of American logistics.
As we addressed last week, there are many factors that influence the cost of shipping a full truckload. While you may not run into inclement weather or a high-demand route, chances are you will encounter a little thing called an accessorial charge. Accessorials are charged by carriers to offset costs incurred by services that go beyond standard pickup and delivery. There are many potential accessorial charges, but here are some of the most common, explained.
Accessorial Charge for Fuel
A fuel surcharge is the most common accessorial fee to show up on bills. Around 93% of companies add on a fuel surcharge to help displace the fuel burden from the carrier.
Tolls, Ports and Airports
As we have said before, where you are going and where you are coming from plays a huge role in freight cost. Carriers add any toll charges to the bill, so the more toll roads a truck has to take, the more you will be charged. It’s also standard to charge for pick-ups and drop-offs at airports and ports due to the extra time required to get in and out. Companies have also been known to charge for having to drive through congested areas such as New York CIty or Miami.
Equipment and Handling Charges
When your shipment requires special equipment or personnel, there will almost always be an accessorial charge. For instances, if warehouse employees or the driver have to load or unload the shipment, there will be Lumper and Load/Unload charges. There are also charges for carrying equipment such as tarps, pallet jacks and lift gates that ensure your shipment is protected during transit and delivered safely.
Detention, Layovers, and Stop-offs
These are the accessorials that are most avoidable. If a driver is kept waiting at the pickup or delivery location for more than two hours, there will be a fee. Even worse, if a driver is kept waiting overnight (due to a misbooking of appointments or similar) there will be a significant fee involved. If you want to keep your costs down, try to make sure all pickups and deliveries are at the same location, as there is almost always a fee for additional stop-offs. Remember, the more time you can save for the driver, the more you can save on your truckload shipping.
Accessorial Charges: The Takeaway
Accessorial charges are not always a bad thing. Often they are simply payments for extra services necessary to get your freight moved to its final destination. On the other hand, some accessorials are charges that could be avoided by doing the following: double-check pickup and delivery appointments, make sure warehouses are loading and unloading trucks on time, and maintain clear and open communication with your carrier. Here at Loadsmart we provide a platform that allows you to actively track your shipment and communicate with dispatchers to make sure the whole process goes smoothly. Our Instant Quote Calculator also includes a feature that allows you to factor in any expected accessorials, providing you with a realistic quote.
Anyone who has needed to ship full truckloads has undoubtedly encountered the spot freight market and its ever-changing prices. Two months ago it cost a little over a thousand dollars to ship your load, and now it costs nearly 500 dollars more. Why is that? There are many factors that go into calculating full truckload […]
In a world where technology permeates nearly every major industry, the trucking industry is no different. With a steady rise in the number of truck drivers who use smartphones for both entertainment and job management, companies are racing to provide the technology they need to revolutionize the trade. The trucking industry accounts for over $700 billion in yearly revenue and employs nearly 9 million people in the United States alone, so it’s only natural that there is hesitation in transitioning such a massive industry into technology. While logistics technology makes everything easier, there will always be a need for the human touch in the trucking industry.
Shipments Get Rerouted, Trucks Break Down
Life happens, daily. And in life, sometimes things go wrong. Pallets can be rejected by the receiver and put back on the trailer. Appointment times that are missed will need rescheduling. Trucks can break down on the road. Warehouses can be closed when a driver arrives. The list goes on and on. There are hold-ups and obstacles that can’t be solved without a human on the other end. While it’s easy to imagine that using an app to manage your fleet results in a disconnect between dispatchers and drivers, in reality the right platform can make communication easier than ever. Loadsmart, for instance, provides a chat platform for dispatchers, drivers, shippers and warehouse operators to keep one another updated.
Your Livelihood is at Stake
In an industry that transports more than 70 percent of all freight, there is always a lot at stake. It’s crucial that every detail is perfect. While logistics technology provides tools such as real-time GPS tracking and instant booking of shipments to streamline the process, such a complex industry cannot be reduced to just a few computer clicks. So although Loadsmart automatically vets its carriers with high FMCSA safety and performance standards there is always a human touch on the other end making sure that all of the details fall into place, assuring you that your goods are being transported by qualified carriers.
When it comes to your money, sometimes it’s hard to trust that a software can instantly give you the best shipping price. Though our advanced algorithms are constantly crunching data to deliver a fast and accurate estimate, there is always a professional double-checking to make sure we deliver fair prices to both our shippers and partner carriers.
Although the drivers shortage is currently estimated at around 35,000-40,000, it is predicted to reach 240,000 drivers by 2022. Although there are several factors that contribute to the shortage, an interesting one might be how truckers are paid. Not necessarily how much, but how.
According to Larry Kahaner from the LA Times being paid by the mile and not by the hour results in drivers making no money when sitting in traffic or waiting at warehouses, it also promotes speeding in order to make money. A driver stated “Because payment is by the mile, warehousers and others don’t respect drivers’ time. Any inefficiency in their operation — and even from my own carrier — is soaked up by the driver at no cost to anyone else.”
A drivers opinion on how their carrier values them definitely impacts their performance levels and the turnover rate. Dupre logistics who started paying their drivers by the hour for safety reasons stated“The company realized that even though it was following the rules governing how many hours a trucker could be on the road, its drivers were fatigued, and therefore accident prone.”
This resulted in the company crash rate plummeting, they attract experienced and reliable drivers and their turnover rate is 17% in an industry where the rate is normally around 90%. Thoughts?
Concept trucks isn’t a new concept but it is one that has been getting a lot of attention since MATs when Freightliner presented their SuperTruck concept truck. Many companies have realized that concept trucks are the future. We aren’t capitalizing on the technology in such an important industry and we have to stop making simple changes to our current trucks. We at LoadSmart are obviously huge advocates on improving this industry with technology and now the automotive section is starting to get with the program. No more slight changes year by year, when you focus on concept trucks these are the results you get.
115% boost in vehicle freight efficiency.
50.2% increase in engine brake.
54% reduction in overall aerodynamic drag
12.2 mpg at 65mph.
10.7 liter engine that optimizes the trucks hybrid and waster heat recovery systems.
(Freightliner received a $40 million government grant to build the supertruck, which was matched by Daimer)
Christie says there’s no transportation crisis but many disagree stating potholes are opening everywhere, there’s another possible fare hike for New Jersey commuters, and bridges in New Jersey were ranked 6th worst in the country.
Christie and lawmakers have been struggling to find sources of revenue for the New Jersey Transportation Trust Fund, refusing to commit to increasing the state 14.5 cent gas tax to support the $1.6 Billion they spend a year on infrastructure.
Without increase in revenue all the money raised by gas tax and tolls will go to paying off funds debt after June 30.
To see what they plan on spend $1.5 Billion on and more info go to NJ Spotlight
We are so excited to finally present our app and website at MATS booth #74196 but we just got more excited because we’ve been working hard and need a vacation. Yokahama Tire is giving away a $5,000 vacation giveaway at booth #14124! The winner will be announced Saturday March 28th.
Each day they will be giving away iPad Airs. To enter take a selfie and send it to their Instagram or Twitter with the hashtag #IamYokohama. For guaranteed goody bags come to our booth #74196 to get some truck shaped stress balls, koozies, beer openers, pens and more!!! Also trust me guys, you’re gonna check out the kick ass app we just developed for you guys.
Oil prices are going down and they are expected to continue falling with global supply increasing and the summer driving season still months away.
Many drivers will pay under $2 per gallon in the summer for the first time in over a decade. However, although prices are coming back down Tom Kloza, chief analyst at the oil Price Information Service does not expect the national average to fall to January’s low.
For more on Oil Prices and what this means for Diesel Prices go to The Trucker>>
Double Coin and CMA (a tire manufacturer) is bring Alex Debogorski to MATS March 26-28! Debogorski will be signing autographs from 2-5pm on Thursday and Friday (3/26+3/27) and from 1-3pm on Saturday (3/28) at booth #18068. Besides being on the History Channel reality show, Debogorski is a journalist, blogger, and author of the best selling book “King of the Road”
LoadSmart.com will also be at MATS at booth 74196, where we will be giving out free stuff and giving sneak peaks on our awesome product!
Here’s a little preview ABOUT US!
“No need to fumble through your typical load board. Get ready
for the fastest way to find business and get paid instantly!
LoadSmart brings you a powerful fleet manager with light-speed
contract intermediation to boost shipping productivity and quality of
the trucking service. Upgrade your business with LoadSmart today.