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Trucking Industry Challenges and Considerations

Explore the challenges and considerations faced by the trucking industry, including driver qualifications, regulations, driver shortages, changing technology, and the impact of autonomous vehicles. Discover the potential solutions and advancements needed to address these challenges.

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Trucking Industry Challenges and Considerations

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  1. Trucking IndustryChallenges and Considerations Brian Shultz | MPB Commodities Brokerage Inc.

  2. The Truck Industry • Truck Weights • Federal Law – Gross Vehicle Weight 80,000 lbs = Nets 46k to 52k lbs per truck load • Certain States Allow Higher GVW Limits with additional axles and/or permits • Driver Qualifications • Class A CDL is limited to people over 21 or 18 if only intrastate. • Many Skilled / Technical workers have already decided on career prior to 21 • Driver-Safe Act introduced in Aug ‘18 to lower age and raise training standards. • Physical Fitness • Every 24 months Driver must get pass a Physical Exam • Life on the road • Not a desirable occupation for people entering the workforce. • Wages have not kept up and now the shortage is being felt.

  3. The Truck Industry…continued • Regulations for Drivers • Electronic Logs Required • Monitored via GPS and onboard computer. • Always on watch, scrutinized, & little flexibility for eb and flow of business / personal needs. • CSA (Compliance, Safety, & Accountability Scores) • Measures Accidents / Violations / “HOS” compliance / maintenance / fitness… • Accidents at no fault to the driver still hit the CSA score • Driver scored on Body Mass Index • HoS (Hours of Service) – big fines/CSA score affected • Max 11 hours a day driving and/or Max 14 hours on Duty • Leads to more nights away from home • Waiting Times, Wash outs, Flat Tires, Equipment Failure all count against the 14 hours. • Conclusion is a loss of over 100k Miles annually per truck on the road since 2013

  4. Recruiting New Drivers • Amazon and other Online retailers are paying up for over the road drivers. • Oil & Gas pay to find help for Frac Sand, Solvent, and Crude Oil Drivers in the Texas, Oklahoma, and New Mexico Shale Play. (Short Term/Project based work) • New truck drivers want competitive salaries but also other benefits as well. • Sign on Bonus • More Nights @ Home • Health, Dental, Vision Insurance • Food Allowance • Profit Sharing • Cell Phone w/ Data Plans • PTO • Average Wages have increased over 15% in the last 5 years.. Is it enough?

  5. Daily Challenges • Driver Shortages • Short Term – somewhat shored up, but for how long? • Long Term – lack of younger people interested in entering the workforce • Safety Concerns • Driver Fatigue • Distracted Drivers • Safe Overnight Parking • Changing Regulations • Diesel Emissions • Different State Requirements for weights & liability • Deteriorating Infrastructure • Bridges, Roads, & Rest Stops • Running Repairs and Unplanned Costs • Breakdowns and Tire Failure

  6. Upgrades & Advancement • Technology is changing rapidly • Automatic Transmissions • Blind Spot Monitoring • Advanced Cruise Control – Semi Autonomous – Autopilot • Multiple Cameras • Ground Radar • How can technology reduce an already Stressful job • Driver Distractions • Inclement Weather • Increased Highway Speeds

  7. 5 Levels of Commercial Trucking Autonomy

  8. Trucking’s Next Generation • Driverless Trucks by 2025 w/drone type remote controls from afar. • Fixed Highway / Interstate Lanes for Unmanned Vehicles / Platoons • Remove the human element for more efficient A to B movements. • Drivers pick up from / deliver to central stations & then computers take over. • Since 2012, at least 41 states and D.C. have considered legislation related to autonomous vehicles.

  9. Autonomous R&D • Well on the way. • +40 Companies now have projects in play around the globe. • Automotive, Communications, Technology& Logistics companies collaborating • Radar and Video Technologies both being tested. • Top 7 leaders to date: • Embark, Daimler, Einride, TuSimple, Waymo, Volvo, & Tesla

  10. New Technology = New Challenges & Concerns • More Electronic and Communications Equipment Needed • Redundancies and Reliability Concerns – Fail-Safes • Liability and Insurance for Accidents • Will US Highway Death tolls rise again during first years of Autonomous Roll out? • Who will be responsible? Insurance Premiums will have to go up? • Infrastructure Needed for self driving lanes with separated on/off ramps • Special yards adjacent to Higways to handoff Human first mile / last mile delivery/pickup. • Who pays and how much will it cost? • Upkeep and Maintenance of all the new technology and communications needed. • Trucking Industry is a $900 Billion Industry… Can Technology Advancements offset enough of current costs to help with above challenges?

  11. Trucking Challenges and Considerations • Summary • Trucking Industry has no easy / fast fix • Better Pay & Training • We still need more drivers. • What do new drivers value most? • Time, Money, Quality of Life • Tech is moving ahead quickly • Infrastructure repairs and expansion needed now! • Who will pay?

  12. Trucking IndustryChallenges and Considerations • Questions & Comments • Thank you! • Brian A Shultz • MPB Commodities Brokerage Inc. • Brian.Shultz@mpbcommodities.com • C 443-977-9144

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