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The trucking industry has faced several challenges, including higher finance costs, restrictive credit availability, and declining freight volumes and rate pressure. However, ACT Research continues to see healthy sales and build trends for Class 8 trucks this year, despite a likely recession that could hit by June.

One of the key factors contributing to the demand for new equipment is pent-up demand. Many fleets have deferred equipment purchases in recent years, and they are now seeking to get back to a regular trade cycle. Additionally, elevated carrier profits in the early part of the year have helped support demand for new equipment.

While a recession is expected to hit in the first half of the year, ACT Research does not believe that the pace of interest rate hikes will be aggressive enough to significantly impact commercial vehicle market performance. However, the industry is expected to see a softening in demand as lower freight volumes and rates, higher costs, improved equipment availability, and the gradual exhaustion of pent-up demand begin to exert downward pressure on demand.

Despite these challenges, freight brokers remain relatively optimistic about demand growth. According to the Truckstop.com’s semi-annual freight broker survey, about 49% of those surveyed expect demand growth over the next six months, compared to 45% in the first half of last year and 76% in the second half of 2021. Additionally, brokers appear unfazed by the collapse in spot truckload rates and the effects of moderating economic activity on demand, contractual rates, and gross margins.

However, brokers are split about where rates are headed. Spot rates (excluding fuel surcharges) have fallen 24% over the past 12 months after peaking near the end of 2021. About 34% of brokers expect rates to decrease in the next six months, while 28% see them rising. The group is far less optimistic about the ability to raise contract rates with shippers over the next six months.

To see a rebound in manufacturing activity, which accounts for about 58% of trucking ton-miles, there needs to be a recovery in single-family housing. However, the weakened residential construction market and the softening manufacturing sector are headwinds for the industry.

Overall, the trucking industry faces several challenges in the coming year, but there are also reasons to be cautiously optimistic. The rosy outlook for freight is supported by a consistent demand for equipment, and the industry has a fair amount of visibility thanks to a robust backlog. While the outlook for the industry is somewhat uncertain, trucking remains an essential part of the economy and will continue to play a vital role in the years to come.

Cargo theft recording firm, CargoNet, recorded 1,778 supply chain risk events in the United States and Canada in 2022, marking a 15% increase over 2021. The company’s data showed that events that involved the theft of heavy commercial vehicles, such as semi-trucks and semi-trailers, rose by 17% YoY, while events that involved the theft of cargo increased by 20% YoY. It is worth noting that a single event record could involve theft of one or more vehicles or shipments. The average value of cargo stolen per event was recorded to be $214,104, with CargoNet estimating that $223 million worth of cargo was stolen across all events in 2022.

Supply chain disruptions emerged as one of the key concerns of the year due to their impact on inflation. The scarcity and cost of goods fueled the illicit market demand for items such as computer graphics cards and raw beef, poultry, and pork. Although available capacity improved in the latter months of 2022, theft remained a persistent threat.

The data revealed that theft activity around major intermodal hubs was significant, with California being the state with the highest number of reported events, and theft in the state rose by 41% YoY. California is also a major logistics hub for computer and green energy components, which were among the most frequently stolen items of the year. Meanwhile, theft in Georgia rose by 34% YoY due to organized crime groups taking advantage of increased traffic to the Port of Savannah.

CargoNet also found that household items, such as appliances and furniture, were the most stolen commodity in 2022, followed by electronics. Although theft of computer electronics decreased by 37% from 2021, the theft of televisions and other displays nearly doubled from 2021.

CargoNet warns that the transportation industry must take steps to mitigate the threat of fictitious cargo pickups, a blend of identity theft and cargo theft that can affect all parties in a supply chain. The firm recorded 96 more fictitious pickups in 2022 compared to the previous year, marking a 600% YoY increase. Shipments of solar modules, auto parts, and vehicle maintenance products such as engine oil are among the most at-risk, although the threat extends to most categories of goods.

Motor carriers can prevent fictitious cargo pickups by being cautious of new customers who offer payment through peer-to-peer money transfer apps, especially if they involve hauling a blind shipment to an address different from the bill of lading, especially if the address is a public warehouse or cross-dock in California. Brokers and shippers can also help prevent this type of theft by verifying bids on shipments with the motor carrier through their contact information on file with the Federal Motor Carrier Safety Administration (FMCSA) and ensuring that the name of the motor carrier and driver match the shipment tendered to.

The trucking industry has gone through major changes in the past few years, with trucking companies having to answer a wide range of questions about their operations, from mask mandates and driver protections to zero-contact delivery and creative solutions for in-home installations. Now, these questions have been answered, but new questions about location, sustainability, and labor have emerged, and trucking companies must be ready to answer them to remain desirable to modern shippers.

One of the most significant shifts in the industry was seen in how warehouses utilized their staff during the global pandemic. To maximize productivity, many warehousing facilities scheduled employee lunch times around the estimated time of arrival (ETA) of shipments. This has highlighted the importance of location data, which allows warehouse and distribution center leaders to be prepared for the exact moment a shipment arrives. Trucking companies must offer real-time track and trace options, such as a transportation management system (TMS), a geo-fencing solution, or simple SMS solutions that can ping a driver’s phone to identify their location. Modern shippers also want to offer real-time updates to their customers on when a load will arrive, which requires real-time tracking options from trucking companies.

Another major challenge facing the trucking industry is sustainability, with a coming set of regulations that will require companies to disclose their carbon emissions. The Securities & Exchange Commission (SEC) will soon ask public companies to put their carbon emissions in their earnings statements, and CFOs at major organizations will be required to provide accurate information or risk jail time. Trucking companies must prepare to offer information on factors such as fuel utilization, idling time, miles per gallon, and more.

In addition, the trucking landscape is changing dramatically with regards to labor, with laws like Assembly Bill 5 (AB 5) in California altering traditional trucking models and several other states considering adopting similar statutes. Shippers are also asking about worker classification and are looking for transportation companies to establish prudent hiring practices that limit the risk of accidents. The prevalence of nuclear verdicts and newfound liability is pushing shippers to insulate themselves from risk, meaning transportation companies must prepare to address and alleviate these concerns.

In conclusion, the logistics world is constantly changing and the most progressive shippers will continue to iterate their supply chains to strike a balance between safety, inventory, productivity, and headcount. Trucking companies must be ready to answer new questions about location, sustainability, and labor and have solutions in place to remain desirable to modern shippers.

The trucking industry is undergoing a period of rapid change, and one of the biggest drivers of this change is technology. Over the past few years, technology has had a profound impact on the trucking industry, and it is transforming the way that trucking companies operate and the services they provide.

One of the biggest ways that technology is impacting the trucking industry is through the use of data and analytics. With the advent of advanced sensors and tracking systems, trucking companies are now able to collect vast amounts of data on their operations, including information on routes, fuel consumption, and vehicle performance. This data is then used to optimize routes, improve fuel efficiency, and reduce downtime.

Another way that technology is changing the trucking industry is through the development of autonomous vehicles. Many trucking companies are experimenting with self-driving trucks, which are capable of operating without a human driver. While there are still many challenges to overcome, autonomous trucks have the potential to revolutionize the trucking industry, making it more efficient and cost-effective.

In addition, technology is also playing a role in the way that trucking companies interact with their customers. Many trucking companies are now using advanced software and mobile apps to provide real-time updates on the status of shipments, as well as to offer enhanced tracking and tracing capabilities. This allows businesses to provide their customers with a higher level of service and transparency, which can help to build trust and loyalty.

Overall, the impact of technology on the trucking industry is significant and far-reaching. From the use of data and analytics to the development of autonomous vehicles, technology is transforming the way that trucking companies operate and the services they provide. As technology continues to advance, it is likely that the trucking industry will continue to evolve and change in new and exciting ways.

Being a small business owner in the trucking industry can be both challenging and rewarding. While there are many opportunities for growth and success, there are also several obstacles that small trucking businesses must overcome in order to thrive.

One of the biggest challenges that small trucking businesses face is the intense competition in the industry. The trucking industry is highly fragmented, and there are many small businesses vying for a share of the market. In order to succeed, small trucking businesses must find a way to differentiate themselves and stand out from the competition.

Another major challenge for small trucking businesses is the high cost of operating a fleet of vehicles. Trucks and trailers are expensive to purchase and maintain, and the cost of fuel and insurance can add up quickly. As a result, small trucking businesses must find ways to manage their costs and maximize their profits in order to stay afloat.

Despite these challenges, there are also many opportunities for small trucking businesses to succeed and grow. One of the biggest opportunities is the growing demand for trucking services. As the global economy continues to expand, the need for transportation and logistics services is also increasing, providing a potential source of new business for small trucking companies.

In addition, advances in technology are also creating new opportunities for small trucking businesses. From GPS tracking and fleet management software to advanced fuel-saving technologies, technology is making it easier and more efficient for small trucking businesses to operate and compete.

Overall, being a small business owner in the trucking industry can be both challenging and rewarding. While there are many obstacles to overcome, there are also many opportunities for growth and success. With hard work, determination, and a focus on innovation and customer service, small trucking businesses can thrive and succeed in the competitive trucking industry.

The trucking industry is undergoing a period of rapid change, and one of the biggest drivers of this change is technology. Over the past few years, technology has had a profound impact on the trucking industry, and it is transforming the way that trucking companies operate and the services they provide.

One of the biggest ways that technology is impacting the trucking industry is through the use of data and analytics. With the advent of advanced sensors and tracking systems, trucking companies are now able to collect vast amounts of data on their operations, including information on routes, fuel consumption, and vehicle performance. This data is then used to optimize routes, improve fuel efficiency, and reduce downtime.

Another way that technology is changing the trucking industry is through the development of autonomous vehicles. Many trucking companies are experimenting with self-driving trucks, which are capable of operating without a human driver. While there are still many challenges to overcome, autonomous trucks have the potential to revolutionize the trucking industry, making it more efficient and cost-effective.

In addition, technology is also playing a role in the way that trucking companies interact with their customers. Many trucking companies are now using advanced software and mobile apps to provide real-time updates on the status of shipments, as well as to offer enhanced tracking and tracing capabilities. This allows businesses to provide their customers with a higher level of service and transparency, which can help to build trust and loyalty.

Overall, the impact of technology on the trucking industry is significant and far-reaching. From the use of data and analytics to the development of autonomous vehicles, technology is transforming the way that trucking companies operate and the services they provide. As technology continues to advance, it is likely that the trucking industry will continue to evolve and change in new and exciting ways.

The trucking industry is a vital part of the global economy, and it relies heavily on a fleet of well-maintained and reliable vehicles. For many small and medium-sized trucking businesses, purchasing the necessary equipment can be a major financial challenge. This is where equipment financing comes in.

Equipment financing is a type of loan that allows businesses to purchase the equipment they need to operate and grow. It is different from traditional bank loans because it is specifically designed to finance the purchase of large items, such as trucks and trailers. This means that trucking businesses can use equipment financing to purchase the vehicles and other equipment they need without having to tie up their working capital or take on significant debt.

There are several benefits to using equipment financing to purchase trucking equipment. One of the biggest advantages is that it allows businesses to acquire the equipment they need without having to make a large upfront payment. This means that they can invest their capital in other areas of the business, such as marketing and training.

Another advantage of equipment financing is that it can be more flexible than traditional bank loans. Equipment financing providers often offer a variety of loan terms and repayment options, which can be tailored to the specific needs of the trucking business. This means that businesses can choose a repayment plan that works best for them, and they can adjust their payments as their business grows and changes.

In addition, equipment financing can also help businesses to improve their cash flow. Because equipment financing allows businesses to spread the cost of the equipment over time, they can avoid the large upfront payment that is often required when purchasing equipment outright. This means that they can keep more of their cash on hand, which can be used to meet other business expenses and maintain a healthy cash flow.

Overall, the use of equipment financing is a smart financial decision for trucking businesses. It allows them to acquire the equipment they need without having to make a large upfront payment, and it provides them with flexible repayment options and improved cash flow. With equipment financing, trucking businesses can focus on growing and expanding their operations without having to worry about the financial impact of purchasing the necessary equipment.

The price of diesel in the European Union (EU) is expected to fall due to the ban on imports of Russian products, including diesel, which comes into effect on 5th February. The ban has a price cap which will reduce the amount of revenue flowing to Moscow. The pending ban has resulted in a rush of diesel supply in the EU, where the EU imported around 146,000 metric tons of diesel per day in the week leading up to 29th January, compared to the normal amount of 88,000 tons a day. The EU diesel market is also expected to experience “significant tightening” after the sanctions take effect, regardless of the recent surge in diesel imports. This comes as U.S. inventories of diesel remained steady at 31.8 days of cover in the most recent weekly report.