Some of the largest companies in the US have had their profit margins decreased due to the rising cost of shipping through freight lines. This is due in part to a previously mentioned industry issue that has created a shortage of drivers in part to the less than appealing nature of long-haul trucking for prospective drivers.
Over 70% of all products in the US are transported by freight at some point in their journey to the consumer, reinforcing the importance of the trucking industry. In the last year alone, the rates have raised 6% from April 2017 to April 2018 which has pushed many companies to reassess their ability to subsidize the freight costs. Without the ability to subsidize, those costs get passed along to the consumers with certain companies budgeting additional funds to cover the rising freight costs.
The freight industry itself is experiencing the lowest unemployment numbers since 2000, due in part to the aforementioned shrinking talent pool of qualified truckers. The current workforce is older along with the inability to indeed entice in new truckers due to low wages, stressful conditions, and new federally mandated rules regarding hours on the job. This shortfall has pushed many freight companies to incentivize new truckers by increasing pay and benefits which leads to an increase in shipping costs but helps ease the lack of truckers.
The expectation from certain retailers is also placing a burden on an already stressed industry by setting quicker and quicker deadlines for products expecting to reach consumers. In an industry already under pressure, it’s essential that the truckers are given as stress-free a working environment as possible in the hopes of enticing new truckers into the fold. RigPark is committed to helping provide safe, predictable overnight parking for these truckers which should help to ease one of the most stressful aspects of their career.
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