Before these recent years, private fleets consistently managed about 67% of freight. But disruptions like the 2017-18 freight boom and the COVID-19 pandemic have pushed that number higher, as noted by Gary Petty, CEO of NPTC, in an August chat with Transport Topics.

For-hire motor carriers saw a slight dip, managing 16% of outbound freight in 2023, down from 17% in recent years. Meanwhile, dedicated contract carriers’ share dropped to 8%, down from 11% last year.

A key takeaway from this year’s survey is that 84% of private fleet shipments now go straight to retail customers, which is the highest percentage ever recorded since the survey began in 2005. This shift reflects a growing focus on direct customer service.

The survey saw a record 122 fleets participating, with 28% being first-time contributors. This marks a significant increase from 20% the previous year. Penske Truck Leasing sponsored the survey.

The food products sector led the way among respondents (17%), followed by retail (16%) and grocery stores (14%).

Participants reported a 7.5% increase in shipments year-over-year, a jump from the 4.6% growth seen the year before. Overall volume grew by 8.6%, slightly better than the 8.4% increase from the previous year.

Private fleet freight movements saw their value rise by 7.2%, a notable improvement over the 2.8% increase recorded the year before. This growth occurred despite 72% of respondents saying that capacity was more readily available and affordable in 2023.

Private fleets expanded significantly during the pandemic to better control their supply chains and manage fluctuating costs, even as for-hire carriers faced a slowdown and lower rates.

The top reasons for maintaining a private fleet included better customer service (49%), controlling transportation costs (20%), and improving supply chain management (13%). When considering the top five reasons, managing costs and capacity were crucial.

Cost metrics are increasingly important, with 55% of respondents comparing their fleet’s performance to for-hire carriers in terms of service and rates. This is up from 45% the previous year. Cost per mile has become a key focus, with 90% of carriers tracking this metric closely.

Additionally, cost per stop and cost per case have gained more importance this year, indicating a more detailed approach to cost management.

The Transport Topics Top 100 Private Carriers list shows how these trends are shaping the industry. Dollar General moved up to No. 18 after expanding its fleet to over 2,000 tractors. Walmart, with its fleet now at 12,663 power units, took back the top spot from PepsiCo, which had led the rankings for 14 years.

Despite these advancements, private fleet operators are still grappling with driver-related challenges, including an aging workforce, recruitment difficulties, and high turnover rates.

Source: Transport Topics

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Key Findings on Truck Driver Compensation

Over 50% of survey respondents expect their earnings in 2024 to match or surpass those of 2023. Specifically, 39% anticipate stable earnings, while 22% foresee an increase compared to last year. These statistics highlight the resilience of driver compensation trends, even in fluctuating freight markets.

Bob Costello, ATA’s Chief Economist, remarked, “While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers’ earnings are still rising — even in a weaker freight economy.”

Shift in Trucking Industry Priorities: Retention Over Recruitment

In 2023, trucking carriers redirected their focus from recruitment efforts to retention strategies. This shift involved reducing sign-on bonuses and referral incentives for new drivers while enhancing tenure bonuses for existing drivers.

“By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention,” Costello noted.

Truck Driver Salary Insights: ATA Study Highlights

• Truckload Drivers: The median income for truckload drivers in 2023 was $76,420, representing a 10% increase over two years.
• Linehaul LTL Drivers: These drivers earned a median salary of $94,525 annually.
• Local LTL Drivers: Local LTL drivers reported an annual median income of $80,680.
• Private Carriers: Driver compensation saw a 12% increase since 2021, reaching a median of $95,114 in 2023.
• Leased Independent Contractors: These contractors reported a median pay of $186,016.

Driver Earnings Outlook for 2024

Among CCJ survey respondents, 35% who anticipate higher earnings this year attribute this to driving more miles or hauling additional loads. Another 27% cite pay increases from their carriers, with some experiencing a per-mile rate hike (27%) or receiving guaranteed payouts or bonuses (22%). Notably, 50% of leased owner-operators foresee higher earnings due to increased miles driven, while 46% report better load rates.

Industry Shift Toward Higher Pay for Experienced Drivers

The National Transportation Institute’s data indicates that trucking fleets prioritized significant pay raises for seasoned drivers in the past year, departing from the previous trend of using financial bonuses mainly to attract new drivers.

Source: Commercial Carrier Journal

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The current state of the freight market in the USA shows relative stability, with supply and demand dynamics remaining steady. According to Uber Freight’s Q3 analysis, the truck freight sector saw a slight 1.2% growth year-over-year, driven by a 2.3% increase in consumer spending and a 10.4% rise in containerized imports. This stability is crucial for the ongoing operations of the trucking industry.

Projections for Supply and Demand

Looking forward, experts anticipate some changes in the freight market. Mazen Danaf, a senior economist at Uber Freight, predicts that excess supply will gradually leave the market while demand remains consistent. David Spencer from Arrive Logistics notes that although some capacity may exit, overall freight rates in the USA are expected to remain under pressure due to the steady supply. Current economic conditions, such as moderate consumer spending and slow industrial growth, are significant factors in these projections.

Industry Trends and Challenges

The freight market is also experiencing specific trends and challenges. For example, the divergence between reefer and van equipment began last year, largely due to seasonal impacts on rejection rates. Additionally, shippers seeking discounted rates could create challenges for truck carriers, potentially leading to more market exits. The continued rise in containerized imports might also increase rail traffic, especially in key port regions, where labor disputes could further complicate the situation.

Political and Economic Factors

Political developments in the USA, especially with upcoming elections, contribute to uncertainty in the freight market. Policy changes could significantly impact consumer spending and trucking demand, potentially shifting market dynamics. For instance, pro-spending policies or deregulation could stimulate industrial activity, affecting both capacity and demand within the truck freight sector.

Strategic Considerations for Carriers

As 2025 approaches, truck carriers in the USA should prepare for potential market shifts. While overall market volatility remains low, conditions might tighten in Q4 due to peak season demands. It’s essential for carriers to manage operating expenses and stay flexible to maintain sustainable rates, especially if the market softens. In regions like Southern California, where high import volumes and labor issues are prevalent, carriers must be particularly attentive to these evolving challenges.

Source: Commercial Carrier Journal

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The Trucking Industry’s Workforce Challenge

The trucking industry faces a growing challenge: an aging workforce. According to the American Trucking Associations, the average age of truck drivers is steadily rising, with 50% of all drivers being over the age of 45. This trend indicates that as many drivers near retirement, there is a growing need for younger drivers to step in. However, this transition is not without its difficulties, as new drivers are often unprepared for the realities of the road.

Mentorship provides a solution. As veteran truckers retire, they have the opportunity to pass on their wealth of knowledge, ensuring the next generation is better equipped to handle the unique challenges of the job.

Why Mentorship Matters in Trucking

1. Skills Development Beyond Formal Training
   New drivers fresh out of training programs often lack practical, real-world experience. While these programs provide foundational knowledge, they can’t replicate the unpredictable nature of long hauls, varied road conditions, and unique customer demands. Veteran drivers have “road wisdom” gained through thousands of miles that formal training simply cannot offer.
   • Practical driving skills: Veteran mentors offer nuanced tips on handling difficult terrain, managing fatigue, and maintaining safety under stressful conditions.
   • Navigation expertise: Mentors can provide valuable insights into better route planning, avoiding congested areas, and adjusting to unforeseen detours.
   • Load management: Many new drivers struggle with loading and securing freight properly. Mentors can help them understand the science behind weight distribution, trailer dynamics, and reducing the risk of damage.
2. Improving Safety on the Road
   One of the trucking industry’s top priorities is safety, and mentorship has a direct impact on this. According to a study by the Federal Motor Carrier Safety Administration (FMCSA), novice drivers with mentors during their first year are involved in 27% fewer accidents than those without mentors. The safety benefit is clear: mentorship significantly reduces the learning curve and helps new drivers develop safer habits from day one.
3. Building Confidence and Job Retention
   Starting out as a trucker can be intimidating. The long hours, isolation, and challenging work environment can lead to burnout or job dissatisfaction. Mentors not only provide technical knowledge but also serve as emotional support for new drivers. Studies show that mentorship improves retention by creating a sense of community and belonging within the industry. This guidance reduces early drop-out rates and fosters long-term career satisfaction.

Mentorship helps newer drivers:

1. • Navigate emotional challenges like long periods away from family.
   • Adjust to the lifestyle of being on the road for extended periods.
   • Learn the ‘tricks of the trade’ that make the job more manageable, such as how to maintain a work-life balance and stay mentally sharp during long trips.

Mutual Benefits of Mentorship

The mentor-mentee relationship in trucking is not one-sided. While new drivers undoubtedly gain valuable knowledge, veteran drivers also benefit in various ways:

• Legacy and Pride: Mentoring is an opportunity for seasoned truckers to leave a lasting legacy in the industry. Many veteran drivers take pride in shaping the future of trucking, knowing that their guidance will help maintain the industry’s high standards.
• Refreshed Perspective: Mentoring can also re-energize older drivers by giving them the chance to see the industry through fresh eyes. Engaging with new technology, discussing new regulations, and learning about the latest equipment through the eyes of a mentee can be a revitalizing experience.
• Career Longevity: For some older drivers, mentorship can extend their careers. Instead of leaving the industry entirely, many find satisfaction in taking on more teaching roles while reducing their driving hours. This can create a fulfilling transition as they approach retirement.

Programs That Foster Mentorship in Trucking

Recognizing the importance of mentorship, several trucking companies and associations have launched formal mentorship programs:

• American Trucking Associations (ATA): The ATA offers guidance for developing mentorship programs that connect new drivers with seasoned professionals. They also encourage companies to foster these relationships through incentives and structured systems.
• Trucking Moves America Forward (TMAF): TMAF has also highlighted the significance of mentorship, promoting initiatives aimed at bridging the gap between generations of drivers.

Additionally, companies like Schneider and Swift Transportation have implemented in-house mentorship programs designed to help new recruits transition smoothly into their roles.

How to Become a Mentor or Find One

For veteran truckers interested in mentoring:

• Many companies provide mentorship opportunities. Speak with your fleet manager to express interest.
• Local trucking associations and unions often have mentorship networks or can help you connect with new drivers.

For new drivers looking for a mentor:

• Ask your company: Many large trucking companies offer formal mentorship programs or can match you with an experienced driver.
• Join online trucking forums: Many communities offer mentorship pairings or the opportunity to ask questions directly to veterans in the industry.

In an industry where experience and skill are paramount, mentorship in trucking serves as a crucial bridge between the outgoing and incoming generations. By offering practical skills, promoting safety, and building confidence, mentorship ensures the trucking industry remains strong, resilient, and ready to meet future demands. For both the mentor and the mentee, the benefits are far-reaching, making it a vital component of a thriving career in trucking.

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Types of Trucking Insurance

1. Liability Insurance

Liability insurance is a fundamental requirement for all commercial truck drivers. It provides coverage for damages caused to other people and property in case of an accident where you are at fault. The Federal Motor Carrier Safety Administration (FMCSA) sets the minimum coverage requirements, which are:

• $750,000 for general freight carriers.
• $1 million for hazardous materials carriers.
• $5 million for certain high-risk cargo like explosives.

2. Cargo Insurance

Cargo insurance is crucial for protecting the freight you transport. This coverage addresses damages or losses resulting from theft, fire, or accidents. The insurance amount should align with the cargo’s value to ensure adequate protection.

3. Physical Damage Insurance

Physical damage insurance covers repairs or replacement costs for your truck in case of damage due to accidents, vandalism, or natural disasters. This type of insurance is essential for safeguarding your vehicle from various risks.

4. Bobtail Insurance

Bobtail insurance, or non-trucking liability insurance, provides coverage when driving your truck without a trailer or during off-duty periods. This policy is vital for independent owner-operators who want protection when not hauling freight.

5. Occupational Accident Insurance

Occupational accident insurance offers benefits if you are injured while on the job, covering medical expenses, lost wages, and related costs. Although not a substitute for workers’ compensation, it provides additional protection for independent truck drivers.

6. General Liability Insurance

General liability insurance protects against third-party claims for bodily injury, property damage, and advertising injuries that occur on your business premises or as a result of your operations. This insurance is crucial for mitigating lawsuits and claims.

Benefits of Trucking Insurance

1. Financial Protection

Trucking insurance provides vital financial protection against potential losses, including vehicle damage, cargo loss, and liability claims. Without proper insurance, the financial impact of accidents and other incidents could be significant.

2. Compliance with Legal Requirements

Maintaining the required types of trucking insurance ensures compliance with federal and state regulations, helping you avoid fines and legal issues. The FMCSA and state laws mandate specific insurance coverage for commercial trucks.

3. Peace of Mind

Having comprehensive trucking insurance offers peace of mind, knowing you are protected against various risks. This allows drivers to concentrate on their primary responsibilities—safely transporting goods—without excessive worry.

4. Enhanced Business Reputation

A well-insured trucking business often enjoys a better reputation among clients and partners. It reflects professionalism and reliability, providing a competitive edge in the industry.

How to Choose the Right Insurance

1. Evaluate Your Needs: Assess factors such as the types of cargo you transport, the value of your truck, and operational risks to determine your insurance requirements.
2. Consult with an Insurance Agent: An experienced agent can tailor a policy to fit your specific needs and ensure adequate coverage.
3. Compare Policies: Review various insurance providers and policies to find the best match for your business.

Trucking insurance is essential for managing risk and ensuring the smooth operation of your trucking business. By understanding the different types of insurance available and their benefits, you can make informed decisions to protect yourself, your truck, and your cargo.

The post Understanding Trucking Insurance: Types, Benefits, and What You Need to Know appeared first on Truck Drivers USA.

In June, the Volume Index experienced a notable decline, dropping 5.5 points to settle at 48.9 (seasonally adjusted), down from last month’s Roadcheck-boosted figure of 54.4. “Volumes have been fairly flat this year, but they’ve improved to ‘less bad’ on a y/y basis, with the index averaging 48.8 through the first half of this year, versus 42.8 last year,” commented Carter Vieth, a research analyst at ACT Research. He also highlighted that despite the financial strain on consumers, “real U.S. retail sales are up 1.8% YTD,” and the easing of inflation supports expectations for real income growth. Positive trends in intermodal and import volumes are contributing minimally to the total surface freight volumes, while a slowdown in U.S. Class 8 tractor sales points to a deceleration in private fleet growth, indicating that private fleet insourcing may be impacting for-hire demand.

While some progress is noticeable, the overall data on truckload volume remains erratic, with both the Cass Freight Index and DAT spot loads currently hovering at cyclic lows.

The Capacity Index saw a month-over-month increase of 3.6 points, climbing to 49.3 in June from 45.6 in May. “Though the index increased m/m, this month’s reading marks the 12th month in a row capacity has been below 50, the longest streak of decline since the inception of the survey in late 2009,” Vieth mentioned. He noted that a slower rate of capacity contraction signifies a narrowing supply-demand balance between fleets and freight. With the ongoing downturn and persistently weak fundamentals, the prospect of capacity turning positive in the near future remains dim, particularly as sales of US tractors continue to trend downward.

The Supply-Demand Balance Index fell to 49.6 (seasonally adjusted) in June, a decrease from 58.7 in May, primarily due to diminishing freight volumes alongside rising fleet capacity. “Private fleet expansion, which is not captured in this indicator, is resulting in a longer leadup to higher market rates than in past cycles,” Vieth concluded. He emphasized that with capacity concerns persisting, monitoring overall equipment purchasing trends will be crucial, as sustained demand-side freight growth may continue to support market balance.

Source: The Trucker

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Why Securing Cargo Matters

Securing cargo in dry van trucking is essential for several reasons:

1. Safety: Properly secured cargo prevents accidents caused by shifting loads, which can lead to rollovers, jackknifing, and other dangerous situations on the road. According to the Federal Motor Carrier Safety Administration (FMCSA), improperly secured cargo is a leading cause of trucking accidents.
2. Compliance: Regulations mandate that cargo be secured to prevent movement. The FMCSA outlines specific requirements for securing different types of cargo, and failure to comply can result in hefty fines and penalties.
3. Cargo Integrity: Secured cargo is less likely to get damaged during transport. This is crucial for maintaining good relationships with clients and avoiding costly damage claims.
4. Efficiency: Properly secured loads ensure that deliveries are made on time without the need for unexpected stops to re-secure cargo, thus improving operational efficiency.

Best Practices for Securing Cargo

Now that we understand why securing cargo is vital, let’s look at some best practices to ensure your load stays put.

1. Use the Right Equipment
   • Invest in high-quality straps, ropes, and load bars. The right equipment can make a world of difference in keeping cargo secure. Remember, skimping on equipment is like trying to plug a leaky boat with a sponge – not very effective!
2. Distribute Weight Evenly
   • Ensure that the cargo is evenly distributed throughout the trailer. This not only helps in securing the cargo but also prevents issues with axle weight limits and improves vehicle handling.
3. Secure Every Load
   • Even if it’s just a short trip down the road, always secure your cargo. It’s easy to get complacent but remember Murphy’s Law: anything that can go wrong will go wrong.
4. Regularly Inspect and Adjust
   • Regularly check your cargo during stops to ensure that it hasn’t shifted. Adjust straps and load bars as necessary.

Latest Trends and Technologies

Staying up-to-date with the latest trends and technologies in cargo securing can give you an edge in dry van trucking.

1. Automated Securing Systems
   • New automated securing systems are hitting the market, which can tighten straps and adjust load bars with the push of a button. These systems are designed to reduce human error and improve securing efficiency.
2. Telematics and Sensors
   • Advanced telematics and sensors can monitor cargo conditions in real-time, alerting drivers if a load shifts or if securing devices are failing. This proactive approach allows for immediate action to prevent accidents.
3. High-Performance Materials
   • Innovations in materials, such as high-tensile-strength straps and lightweight, durable load bars, are making cargo securing more reliable and easier to handle.

Securing your cargo isn’t just about compliance or avoiding damage – it’s about safety, efficiency, and peace of mind. By following best practices, staying updated with the latest technologies, and never skimping on equipment, you can ensure that your cargo stays exactly where it should: firmly in place. So, the next time you load up, remember: a secure load is a safe load!

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“Lower parts and labor costs are welcome news to fleets, who have been weathering substantial increases for much of the last several years,” said TMC Executive Director Robert Braswell. “This important parts and labor cost analysis report is an excellent tool to help council members compare how their operations are performing relative to industry trends and plan accordingly.”

According to the report, parts and labor expenses decreased across 25 significant Vehicle Maintenance Reporting Standards (VMRS) systems, continuing a downward trend from the previous quarter when costs fell by 1.4%. Only seven of the 25 VMRS systems saw an increase in combined parts and labor costs, about half of the 13 systems that experienced an increase in the prior quarter.

The report highlights that, while parts costs went up in seven systems and labor expenses increased in 12 systems, the overall trend shows a decline in total costs for both parts and labor. Specifically, parts costs fell by 2.4% in the first quarter, marking the second consecutive quarterly decline, and labor costs dropped by 0.8% after two quarters of increases. Year-over-year, combined costs declined by 2.3%, although labor costs alone rose by 0.9%, a smaller increase compared to the 4.0% rise reported in the previous quarter.

“While more new trucks and greater parts availability are helping commercial asset service operations realize an across-the-board drop in costs, the ongoing shortage of new technicians entering the workforce continues to drive up labor costs,” said Decisiv President and CEO Dick Hyatt. “The recent findings are certainly positive. The ongoing efforts by commercial asset service operations to streamline management and execution of maintenance and repair activities are clearly playing a role in keeping costs down.”

The influx of new trucks and improved supply chain conditions are contributing to a widespread reduction in parts costs for commercial asset service operations. However, the shortage of new technicians is still pushing labor costs higher as companies must spend more to attract and retain qualified staff from a shrinking labor pool.

Decisiv aggregates data for the Decisiv/TMC North American Service Event Benchmark Reports, focusing on 25 VMRS system-level codes that comprise over 97% of total parts and labor costs. This data represents more than seven million assets and includes over 300,000 monthly maintenance and repair events across over 5,000 service locations. The ATA’s Technology & Maintenance Council distributes these insightful reports to its fleet members, organized according to the Council’s Vehicle Maintenance Reporting Standards, and categorized by VMRS-coded vehicle systems and geographical location.

Source: Truckers News

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CEVA Logistics and CMA CGM Group: The Key Players

For Paris 2024, CEVA Logistics and its parent company, the CMA CGM Group, are the official logistics partners. Their responsibilities span a wide array of tasks, all integral to the success of the Games.

1. Comprehensive Freight and Trucking Services: CEVA Logistics handles the transportation of sports equipment, athlete gear, and other essential items. This includes managing over 900,000 pieces of sports equipment, from trampolines and boats to surfboards. They also transport 1.3 million items of furniture and equipment needed for the Olympic venues​.
2. Venue Setup: Trucking companies are instrumental in setting up and maintaining Olympic venues. For Paris 2024, this includes the delivery and assembly of 250 containers of bleachers and mobile seats, as well as 17,000 beds for athletes in the Olympic Village​​.
3. Sustainable Trucking Solutions: CEVA Logistics is committed to sustainability, aiming to deliver at least 50% of goods using low-carbon vehicles powered by biofuels. This aligns with their broader goal of achieving net-zero carbon emissions by 2050, reflecting a commitment to eco-friendly trucking practices.
4. Torch Relay Logistics: One of the most high-profile tasks is the Olympic Torch Relay. CEVA handles the logistics of transporting supplies necessary to keep the torch burning across its journey. This involves coordinating ground transportation within France and overseas shipments to French territories, ensuring timely and precise deliveries​​.

The Importance of Trucking in Olympic Logistics

Handling the logistics for an event as large as the Olympics involves anticipating and overcoming numerous challenges. Geopolitical issues, tight schedules, and the need for precision all require trucking companies to be highly adaptable and efficient. CEVA’s approach includes advanced planning and the flexibility to respond to unexpected changes, ensuring a smooth logistical flow​​.

For truck drivers and the broader trucking industry, the Olympics present a unique and high-stakes challenge. The expertise of companies like CEVA Logistics and CMA CGM Group ensures that athletes and their equipment are transported safely and on time, allowing the Games to proceed without a hitch. The critical role of trucking in this massive logistical operation highlights the industry’s importance in supporting the world’s biggest sporting event. As we look forward to Paris 2024, the contributions of truck drivers and logistics professionals will continue to be essential in bringing the Olympics to life.

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Truckers are essential in delivering the key components of our 4th of July celebrations:

1. Fireworks
   • Fireworks are the highlight of any 4th of July celebration, and truckers are responsible for transporting these exciting displays safely and on time. They deliver fireworks from manufacturers to stores and public events, ensuring every show is spectacular.
2. BBQ Supplies
   • What’s a 4th of July without a barbecue? Truckers transport all the essentials, from fresh meat and vegetables to grills and propane tanks. They make sure grocery stores are stocked, so families can enjoy their holiday feasts.
3. Event Equipment
   • Many towns celebrate with parades and public events, and truckers deliver the floats, sound systems, and other equipment needed to make these celebrations memorable. Their logistical support helps communities come together to celebrate freedom and unity.

Truckers’ dedication keeps America moving, ensuring that goods are delivered on time and supporting businesses and consumers alike. This hard-working spirit is a testament to the resilience and determination that define our nation.

As we celebrate the 4th of July, let’s take a moment to appreciate the trucking industry and the dedicated drivers who make our celebrations possible. Their hard work and commitment ensure that we can enjoy the freedoms and festivities of Independence Day. So, here’s to the truckers—our road warriors—who keep America moving and our celebrations thriving. Happy 4th of July!

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