Over the last few months the trucking industry has finally seen some growth.
The outlook for trucking companies shows that they will, in fact, experience a driver shortage because of the rapid pace of growth.
However, the recovery of the trucking company is far from complete, and even though we are working our way out of the recession, there are other factors that contribute to the industry's success.
The recent hike in fuel prices is throwing a wrench into the industry recovery.
While drivers and companies are seeing an increase in loads and volumes, they are still suffering because of the rising fuel prices.
A recent article showed that trucking companies are closing, citing fuel costs as a primary reason.
For trucking companies higher gas prices means that they have to raise their prices, which in turn drives away customers.
Other companies have stated that fuel prices have caused them to reduce their fleet until nothing remains.
Another side effect of rising fuel costs is that companies are losing drivers.
Drivers don't want to raise prices for fear of losing business.
In addition, several companies have stated that drivers don't want to be couriers anymore because they don't want to raise their prices.
When drivers have to raise their prices it is likely that the client will look to someone else to carry their loads, which decreases the amount of money a driver can make in a given amount of time.
Drivers are looking to more stable jobs in the industry, causing smaller organizations to close their doors.
In addition to the high fuel costs, drivers and companies alike are seeing other issues that are impeding their growth.
Several drivers have said that registration fees are rising.
One driver said his registration fee is up to $4,800 a year and it costs up to $540 to fill up a tank, which does not get a driver very far.
The combined costs of fuel and registration fees, in addition to the new DOT driver regulations, are causing the industry's recovery to stall.
Overall, the trucking industry is still seeing growth, but if fuel costs remain high over the next few years, it is likely that many small organizations will shut down their services.
In the end this will cause the costs of goods to go up because it will more expensive to transport them.
Also, the fewer trucks on the road the longer it will take for loads to reach their destination.
If the trucking industry does not recover it could prevent the recovery of many other industries as well.
The outlook for trucking companies shows that they will, in fact, experience a driver shortage because of the rapid pace of growth.
However, the recovery of the trucking company is far from complete, and even though we are working our way out of the recession, there are other factors that contribute to the industry's success.
The recent hike in fuel prices is throwing a wrench into the industry recovery.
While drivers and companies are seeing an increase in loads and volumes, they are still suffering because of the rising fuel prices.
A recent article showed that trucking companies are closing, citing fuel costs as a primary reason.
For trucking companies higher gas prices means that they have to raise their prices, which in turn drives away customers.
Other companies have stated that fuel prices have caused them to reduce their fleet until nothing remains.
Another side effect of rising fuel costs is that companies are losing drivers.
Drivers don't want to raise prices for fear of losing business.
In addition, several companies have stated that drivers don't want to be couriers anymore because they don't want to raise their prices.
When drivers have to raise their prices it is likely that the client will look to someone else to carry their loads, which decreases the amount of money a driver can make in a given amount of time.
Drivers are looking to more stable jobs in the industry, causing smaller organizations to close their doors.
In addition to the high fuel costs, drivers and companies alike are seeing other issues that are impeding their growth.
Several drivers have said that registration fees are rising.
One driver said his registration fee is up to $4,800 a year and it costs up to $540 to fill up a tank, which does not get a driver very far.
The combined costs of fuel and registration fees, in addition to the new DOT driver regulations, are causing the industry's recovery to stall.
Overall, the trucking industry is still seeing growth, but if fuel costs remain high over the next few years, it is likely that many small organizations will shut down their services.
In the end this will cause the costs of goods to go up because it will more expensive to transport them.
Also, the fewer trucks on the road the longer it will take for loads to reach their destination.
If the trucking industry does not recover it could prevent the recovery of many other industries as well.
Source...