US Trucking Manages to Hold Strong Amid Rising Costs

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According to Bloomberg’s report on the US trucking industry in 2023, the segment’s earnings and margins will be negatively affected by rising labor and insurance costs, as equipment prices also skyrocket. The increasing prices of maintenance for trucking fleets also affect this report.

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Rising truck repair and maintenance costs were initially caused by COVID-related supply chain shortages and strong demand when the freight rates hit record highs. Now that COVID-19 has taken a backseat to directly impacting the industry, inflation has stepped in and continues to drive the costs of truck parts and labor.

Truck insurance currently faces critical challenges as limited carrier options are contributing to higher premiums.

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Demand for trucking peaked during the pandemic, as home delivery and one to two-day shipping had an all-time high demand. Because of this, company drivers benefited from wage increases which attracted more diverse truck driver hires. According to the Women in Trucking Association’s 2022 Index, women drivers make up almost 14% of the industry today – up from 10% in 2019.

Though the trucking industry is keeping afloat after the impacts of the COVID-19 pandemic, new laws and legislation are being developed to aid the trucking industry with government grants in order to help avoid any further increase in rising industry costs. Several grants have already been given to multiple states in regard to environmental acts, fuel prices, and road safety – including rail legislation. Now, the discussion on how to balance rising costs with trucking demand has begun.

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