3 Essential Trucking Business Challenges — And The right way to Meet Them

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The transportation business is important to the worldwide financial system, however it additionally faces important challenges. From elevated competitors to altering laws, transportation companies have an array of exposures that may result in expensive losses if not addressed in a well timed method.

Transportation firms should be proactive in figuring out potential exposures and creating danger administration options that assist defend their backside line. By understanding the present business challenges and easy methods to meet them, transportation companies can guarantee they continue to be worthwhile in an ever-changing surroundings.

This text will talk about three of the commonest transportation business challenges (per the American Transportation Analysis Institute’s current report) and the way companies can create efficient danger options to handle them.

1. The Economic system

With rising inflation, provide chain shortages, excessive diesel costs and continued wage pressures, the financial system is a high concern amongst transportation leaders. When instances get tight, transportation firms should have a stable understanding of their prices and optimize their operations for max effectivity. Threat options resembling transportation-specific applications that assist scale back claims frequency, in the end assist transportation firms reduce their publicity to financial downturns.

2. Driver scarcity

There are a selection of underlying elements contributing to the motive force scarcity, together with a retiring driver workforce, the difficult way of life, and regulatory pressures main some drivers to depart the business. Stakeholders consider there are a number of methods to cut back the scarcity together with:

  • Reducing the authorized driving age to 18
  • Bettering the driving way of life, by increasing truck parking and decreasing detention at buyer services
  • Recruiting extra ladies to the career

3. Driver retention

Whereas the common annual beginning bonuses had been up 26% over the previous 4 years, in accordance with ATRI’s Operational Prices of Trucking analysis, retention bonuses had been up 57% over the identical time interval, displaying the business’s elevated deal with retaining their greatest drivers.

Different methods might embrace:

  • Analysis and prioritize retention methods, based mostly on driver suggestions and driver tenure information.
  • Consider the influence of truck driver advantages, together with medical insurance and retirement advantages, on driver retention.
  • Quantify the connection between security expertise deployment (e.g. cameras, velocity limiters, lively braking methods) and driver satisfaction and retention.

At Kapnick, we perceive the transportation business and take a complete strategy to addressing your distinctive problem. As specialists in each enterprise insurance coverage and worker advantages, we are able to guarantee our transportation shoppers’ worries are addressed, whether or not that entails danger administration or worker retention methods. Contact us right now at 888.263.4656 or [email protected] to study extra about how we are able to discover the perfect options on your transportation enterprise.