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Thursday, July 7, 2022

How Rising Fuel Costs Affect the Trucking Industry

Rising fuel prices are, of course, a cause for anyone’s concern. Getting to work every morning will be more expensive than anyone wants it to be if the issue isn’t resolved. However, it is still possible to find different, cheaper alternatives for travel. The ones who are really impacted by this are the shipping companies. And they do not really have a way of avoiding the consequences — particularly those who rely on the trucking industry. To explain the problems they’re facing, let’s take a closer look at how rising fuel costs affect the trucking industry!

The cost of deliveries is rising

As any professional shipping company will tell you, the rising fuel costs are a nightmare for the trucking industry. The fact that fuel price is skyrocketing is making it harder and harder to keep within profit margins. The cost of each shipment is suddenly surging on the company’s end. If six hundred dollars were enough to cover a round of shipment, now the costs can reach double that number. This, of course, makes it nearly impossible to keep the service prices at the levels they used to be. And there is no simple solution for this. Not even raising the cost of their services by enough to account for this will help. It’s only natural that their clients would protest such a decision and look for alternatives. So, the question of how rising fuel costs affect the trucking industry is more than relevant for the consumers as well!

The impact on profits is affecting trucker pay

Of course, it is impossible for the profit losses not to affect the company and workers. With the rising costs making shipments nearly unprofitable, and with the backlash of raising service prices, plenty of companies have been brought into the red and are on the verge of bankruptcy. And, as the experts from Excalibur Moving and Storage who are dealing with this issue too point out, it is hard to keep this from affecting the staff. If the company cannot pay their salaries or even needs to lower them just to stay afloat, then the truckers are the ones who end up drawing the short end of the stick. As the personnel on the field, they are putting in the most effort to ensure the smooth and continued operation of any company involved in the trucking industry. And it is getting harder and harder for them to continue working.

Experienced drivers who can handle rough terrain are quitting because of their salaries.

It is growing harder to find trained truckers

The rising fuel costs affect the trucking industry in yet another detrimental way. Because of the loss of profits and suffering salaries of the truckers, it is getting harder to find new employees. After all, the only way for the logistics companies to survive is to try and battle these current conditions through an increased volume of deliveries. This, combined with the havoc that the pandemic has wrecked on the industry, has left the trucking industry in desperate need of qualified and experienced drivers. Only they can ensure the most optimal and safest completion of various routes. Without such staff, shipment routes grow longer and fuel costs even higher. On the other hand, starting a career as a truck driver should be easier due to the demand for new workers. Just keep in mind that you need to be discerning with the company you join.

A small truck fleet.
It is impossible to expand or grow a logistics company without enough drivers.

Small logistics companies suffer

Due to how rising fuel costs affect the trucking industries, the smaller and starting logistics companies are once again left floundering for a solution. The pandemic has already struck a terrible blow and made many such companies declare bankruptcy. And now, the fuel prices again present a challenge for anyone wanting to make it in the trucking industry.

The more prominent players in the world of logistics can still bear with the situation. While their profits are taking a hit, at least they can maintain day-to-day operations. On the other hand, smaller businesses typically do not have a lot of emergency funds to fall back on. So, for example, now, instead of just stressing about properly packing items, loading and unloading a moving truck to avoid property damage, which is something movers should be extra careful about, they also need to learn how to optimize their routes.

Use of optimization software

Speaking of optimization! There is one way rising fuel costs affect the trucking industry that will be beneficial once the whole situation calms down. That is, the trucking industry has just been served a hell of a reason to speed up their integration of the newest tech into their work. The software that can optimize route generation, warehousing, and even plan out delivery schedules is more used than ever before. For example, with the route generation software, the truckers can rely on it to keep track of the situation on the road and avoid traffic jams, especially in bad weather and similar. All of this leads to shorter travel time and, therefore, saves fuel costs. Shipping companies are considering other high-tech solutions too. Such a mindset is reflected in the recent debate on should driverless trucks be included in the recent self-driving bill. Of course, this causes its own concerns.

The consequences

Now you are aware of how rising fuel costs affect the trucking industry. So, let us quickly discuss one last thing related to them. That is the effect of all this on the consumer. We’ve already mentioned that the shipping industry will likely see a rise in the prices of their services. This will, admittedly, not directly affect most people and will be a problem for businesses instead. However, what will definitely affect everyone is the fact that the price of various products will likely shift to account for these increased expenses. This means that even something like the prices of goods in your local supermarket might soon start rising due to how rising fuel costs affect the trucking industry.

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