We’re now officially in the new year – which means a brand-new opportunity for the trucking industry to grow and evolve. In recent years, the industry has grown and seen historic new levels of demand. Transporting goods from one location to the next safely and efficiently has long been the task of union trucking companies. These reliable and hard-working individuals have provided the backbone for American commerce for several decades. And there are no signs of slowing down anytime soon.
However, as we enter the new year, it’s safe to say that a few changes will likely affect the union trucking industry moving forward. While 2021 saw unprecedented demand for our services, unforeseen issues like rising operating costs and offset revenue gains had a few negative impacts, as well. In this post, we’ll explore four trends likely to affect the trucking industry throughout 2022.
1. Fuel Costs
Of course, as any operator knows very well, fuel costs have always been a major percentage of overall operating expenses for every trucking company. Obviously, we all know that without a regular influx of diesel fuel, our flatbed vehicles simply can’t move from point A to point B.
In addition, the fuel industry is constantly undergoing fluctuations in market prices which supply and demand dictate. Also, a collective push towards alternative fuels may affect the industry within the next eleven months.
2. Higher Freight Volume
According to industry insiders, the demand for trucking services isn’t likely to slow down anytime soon. In fact, we’re likely to see quite the opposite. According to the American Trucking Association’s Freight Forecast for 2022, there’s likely to be a 24% increase in national trucking freight volume. As a result, this means a collective revenue increase of up to 67%.
Of course, the companies responsible for overseeing these shipments will directly benefit as a result. This new year could be one of the most lucrative ever for the trucking industry!
3. Mergers & Bankruptcies
Unfortunately, not every trucking company saw unprecedented progress in 2021. A large number of these companies went out of business due to poor management and operating administration. However, the good news is that the flourishing firms now have positions for the drivers and back-office support employees who lost their jobs when these companies went under.
Additionally, these consolidations are adding new efficiencies and eliminating inefficiencies throughout the industry. It is also streamlining the implementation of technology in many areas and allows more efficient routing, among other advantages.
4. Growing Reliance On Technology
Truckers have already seen the elimination of paper logs, the use of new tracking and routing capabilities, and the addition of many new safety and maintenance features that come from rapidly evolving technology. However, those changes are likely to increase and “smarter” solutions will become commonplace in trucks and how they operate.
The role of software for data analytics in tracking and managing shipping will increase. Companies will likely respond to the preference for customers to have access to complete order tracking.
Conclusion – Iron Horse Transport
No matter what 2022 will bring for the industry, at Iron Horse Transport, we’re more than prepared to deliver on our promises to our customers. As New York’s leading provider of union trucking services, we understand evolving industry trends and the need to adapt to changing consumer expectations. In addition, we consistently implement the newest and most cutting-edge technology into our vehicles to ensure the safety of your cargo throughout.