Trucking Industry Changes
Why is the Trucking Industry Changing?
The trucking industry has been virtually untouched for a number of years and hasn’t seen a lot of changes until recently and the shifts can create hurdles but can also be a source for great opportunity. The first major shift we’ve seen in recent years has been the requirement to maintain electronic logs and install ELDs in the units in order to track drive time and down time. This major shift is forcing a number of different changes that create new opportunities for new companies to enter into a market where otherwise their barrier to entry was extremely difficult.
CHALLENGES VS OPPORTUNITIES
We live in the data age and the second you can measure any form of data, there’s an opportunity to improve something, sell something, or just get more insights. This also applies with the implementation of the ELD mandate in that there is now a huge opportunity to get insights on the data that carriers are providing on how their trucking company operates. Major investors are now entering into the space because for the first time in decades, the trucking industry is now a data rich environment.
How long trucks are driving for? What rates are being offered and received in the market? How fast are trucks driving? How much weight they’re carrying? These are all data points that when multiplied and replicated time and again with all the trucks on the road, provide a number of different insights that tech giants and investors want to know about.
The second the internet and social media websites were introduced, tech companies started tracking and monitoring all of our data as general consumers. What companies we like, what our interests are, and demographic information are all being recorded and tracked so that products and services can be sold to us at a later date. Technology is also being used to make our lives easier but it can also be a burden for some.
This concept applies to the changes we’re seeing in the trucking space and the data that’s being collected as we’re moving freight down the road. Companies like Freightwaves are creating freight future financial products allowing trucking/logistics companies to hedge their rate volatility throughout the year and smooth out earnings while companies like Convoy and Uber are creating freight matching services to efficiently match carriers and shippers together.
All these changes are scary and there are a lot of unknowns on what it all means but what has been proven time and time again is that these changes in technology and regulations will eventually create better efficiencies and hopefully more profits for trucking companies down the road. As an independent owner operator, imagine a world where you own your 1 or 2 trucks and don’t have any drivers that you have to pay because your trucks drive themselves. Freight rates will eventually increase because the cost to operate an autonomous truck will increase which means rates and loads will create more profit opportunities for carriers. This is a long road away but it’s still something to think about during the immediate future when all these changes are taking place.
As an Owner/Operator, it’s important to partner with transportation factoring companies like OperFi who can help you navigate these changes and prepare yourself for the changing environment ahead. OperFi can help you learn what changes are coming, how to benefit from them and how to increase your profits.
Contact OperFi today to get a free consult and learn how to earn more profits for your trucking company.