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Trucking Recovery Forecast for 2026: Supply-Side Catalyst Seen by Morgan Stanley

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Trucking Recovery Forecast for 2026: Supply-Side Catalyst Seen by Morgan Stanley

According to an analysis from Morgan Stanley, the trucking industry’s supply side is producing the conditions needed for a recovery next year, but acknowledged it will take improved demand to sustain it. The investment firm noted that the past three trucking upcycles started with a supply-side catalyst, pointing to precursors to the 2014, 2018, and 2020 recoveries, which were quickly supported by positive inflections in demand.

Read also: Why Trucking Fleets Are Accelerating Their Move to Cloud-Based TMS

Morgan Stanley estimates that heightened regulatory enforcement on the driver pool could remove more than 5% of industry capacity. The firm stated that the latest mandates could be the catalyst to tip the scales for an industry that has been purging capacity due to untenable operating conditions.

“We believe Supply tightening as a result of new driver regulations is real and sustainable and will put a rising floor on rates in 2026,” Ravi Shanker, Morgan Stanley transportation equities analyst, told investors in a 2026 outlook report. “While Demand will need to fuel the fire, the spark provided by Supply could be meaningful as we have seen in prior upcycles.”

Shanker’s 2026 base case calls for only normal seasonality in demand, following an 18-month “non-cycle,” wherein “2025 was a bust … as tariffs played havoc with inventory plans.” He said a proprietary survey of shippers “showed some level of restocking off the 1H25 lows” during the third quarter, with the percentage of shippers planning to increase inventories jumping from 9% to 23%. However, only 8% surveyed said they plan to build inventories for full-year 2026.

“While the outlook for a restocking upcycle looks more inevitable than ever for 2026, we acknowledge that there is no clear and explicit catalyst to rely on and headline risk remains high, so we are not counting on a Demand recovery in 2026,” the report stated.

Shanker’s base case includes a mid-single-digit increase in truckload contract rates during 2026, with a bull case for high-single- to low-double-digit increases if demand cooperates. It may take the latter scenario to begin to restore carrier margins, which have been in decline for the past three years as operating costs have significantly outpaced rate increases. The report noted that most public carriers have implemented meaningful expense-reduction initiatives that are unlikely to be reversed as volumes return. However, demand remains squishy as bid season approaches, likely pushing a real recovery in rates out a couple of quarters.

Source: IndexBox Market Intelligence Platform  

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US Truck Makers Face Tariff Costs, Shift Sourcing to Mexico

According to a Reuters report, Section 232 tariffs on imported steel, aluminum, and copper derivatives are raising manufacturing costs for the $50 billion U.S. heavy-duty truck industry, prompting a strategic shift toward sourcing more components from Mexico. Data from the IndexBox platform further illuminates the market dynamics, showing the U.S. heavy-duty truck market was valued at $51.56 billion and is projected to grow to $71.81 billion by 2030.

Read also: Freight Recession Exposes Major Security Gaps in US Trucking

Manufacturers producing trucks in the U.S. face a significant cost disadvantage. Bernstein analysis indicates that tariffs on imported components put trucks assembled in the U.S. at a 3% cost premium compared to USMCA-compliant models built in Mexico. This is reflected in the market, where Daimler’s Mexican-built Freightliner Cascadia is priced at approximately $165,000, notably lower than the roughly $195,000 for Paccar’s comparable Kenworth T680. ACT Research estimates these tariffs add 2% to 4% to per-unit costs.

The USMCA trade pact, which allows duty-free movement of goods meeting specific regional content rules, is central to this shift. Rivals like Daimler Truck and Traton avoid these levies by manufacturing in Mexico, gaining a structural cost advantage. In contrast, companies with a larger U.S. manufacturing footprint, such as Paccar, face higher expenses; the company estimated $75 million in tariff costs for the third quarter alone. Paccar’s brands held a 30.4% market share in the first half of 2025, while Daimler reported a higher first-quarter gross margin of 21.96% compared to Paccar’s 18.69%.

In response, manufacturers are increasing investments in Mexico. Volvo boosted its planned investment in a Mexican plant by $300 million to a total of $1 billion to support its U.S. operations. Paccar’s CEO stated the company is working with suppliers to increase imports of USMCA-certified parts to reduce long-term tariff exposure. The industry also faces broader challenges, with ACT Research forecasting production to dip 11% year-on-year in 2026 to 226,600 units due to economic headwinds.

The cost structure of truck manufacturing underscores the impact of these tariffs, as raw materials, castings, and finished components constitute roughly 85% of the total cost of building a truck. A potential new layer of complexity is a U.S. Commerce Department Section 232 probe begun in April, which could lead to new tariffs or exemptions on imports of medium- and heavy-duty trucks and parts, further reshaping the industry’s cost dynamics.

Source: IndexBox Market Intelligence Platform  

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Freight Recession Exposes Major Security Gaps in US Trucking

The intensity of the current freight recession is magnifying long-standing security vulnerabilities within the U.S. trucking industry, which is responsible for moving roughly 70% of the nation’s goods. According to a Yahoo Finance report, outdated vetting tools and immense competitive pressure are creating significant blind spots that sophisticated fraudsters are exploiting.

Read also: US Truck Freight Market Grows in Q2 2025

Data from the IndexBox platform confirms the market’s volatility, with freight volumes down and rates fluctuating wildly. This environment forces carriers and brokers to prioritize speed, often at the expense of thorough security checks. The pressure to win business is reshaping security practices, as providers are compelled to make faster decisions with thinner margins, leaving little room for deep due diligence.

Fraud schemes have evolved to bypass automated systems designed to flag only the most obvious red flags, such as expired insurance or invalid operating authority. Scammers now employ tactics like hijacking dormant carrier authorities, forging sophisticated documentation, and using near-perfect email spoofing to appear legitimate. In one documented case, a carrier with valid MC and DOT numbers was illegally sub-brokering loads by renting out its authority to unaffiliated drivers, a scheme only uncovered after a shipment vanished.

While technology platforms provide critical data on carrier history and safety scores, their absence of an alert is not a guarantee of safety. The report concludes that technology must support, not replace, human judgment, as the small details that systems miss—like a single letter in a spoofed email domain—are the cracks through which fraud steps. Building resilience requires evolving both tools and training to match the sophistication of modern fraud schemes.

Source: IndexBox Market Intelligence Platform  

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US Truck Freight Market Grows in Q2 2025

According to the latest U.S. Bank Freight Payment Index, the national truck freight market grew in the second quarter of 2025, with both shipment and spend volumes increasing for the first time since the second quarter of 2022. The U.S. Bank National Shipments Index rose 2.4% from the first quarter, while the National Spend Index increased 1.2%.

Read also: Freight Activity in 2025: How Tariffs Disrupted Shipping Patterns

Although the quarterly data shows improvement, year-over-year comparisons still indicate a contraction, with shipments down 9.8% and spending down 4.9% compared to Q2 2024. However, these figures represent the smallest year-over-year declines since the first quarter of 2023, suggesting early signs of market stabilization. Data from the IndexBox platform corroborates this trend of incremental recovery following a prolonged period of contraction.

Economic factors influencing freight movement were mixed. Manufacturing activity showed only slight improvement nationally, while housing metrics were generally down. Port volumes at both U.S. land ports and seaports showed uneven performance. The report attributes some of the quarterly gains to reduced truckload capacity rather than a surge in demand.

Freight rates data showed spending was softer than shipments on a sequential basis, primarily due to lower fuel surcharges. Fuel spend was down $0.02 per mile (4.5%) from the first quarter. Contract rates remained flat quarter-over-quarter, while spot market rates decreased 1.4%. Year-over-year, all rate metrics declined.

Regionally, all five areas tracked by the index posted sequential shipment gains for the first time since Q2 2021. The Southwest led with a 6.7% increase, while the Southeast showed the smallest improvement at 0.1%. The Northeast emerged as the standout performer, with its Shipments Index rising 3.3% over Q1 and increasing 2.7% from a year earlier—the largest year-over-year increase among all regions.

The report cautions that it may be premature to declare a definitive market recovery, noting that the increases could be influenced by tariff volatility and uncertainty. A sustained recovery will depend on greater market clarity, particularly regarding international trade policies.

Source: IndexBox Market Intelligence Platform  

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Amazon Freight Partner Program Eases Entry Into the Trucking Industry

The Amazon Freight Partner (AFP) program is revolutionizing the trucking industry by lowering barriers for aspiring entrepreneurs, allowing them to create their own successful businesses. A recent article on Yahoo Finance details how the program offers low start-up costs and a comprehensive training regimen to prepare partners for long-term success.

Read also: Trucking and Intermodal Industry: Navigating Demand and Capacity Challenges

According to data from the IndexBox platform, the U.S. trucking industry is a multifaceted and dynamically growing sector. The AFP program capitalizes on this growth by supporting new business owners with essential tools to thrive in the market. Participants of the program receive a dedicated business coach and access to ongoing training to ensure both individual and collective success within the industry.

Dorcas Williams, principal marketing manager for the AFP program, emphasized the program’s inclusivity, stating that no previous trucking experience is required. This opens opportunities for leaders from diverse backgrounds to enter the lucrative transportation field. In her interview on FreightWaves Radio’s Drive Time, Williams highlighted the appeal of stable revenue and consistent weekly work as critical benefits for partners.

By structuring jobs as W-2 employee positions and providing benefits, the AFP program aims to uplift commercial license drivers, offering them security and stability often lacking in the industry. This initiative not only benefits drivers but also assists partners in building robust teams and supportive work environments.

The Amazon Freight Partner program continues to seek motivated individuals ready to harness their leadership skills in a growing industry, with resources and training provided by Amazon, ensuring a thriving and sustainable business venture.

Source: IndexBox Market Intelligence Platform  

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Trucking Industry Shows Slight Progress, but a Full Recovery Remains Distant

After 27 consecutive months of declines, the average cost of moving goods by truck is set to rise by 0.2% year-on-year this month. This modest increase has led some to speculate that the trucking recession might be nearing its end. However, many industry insiders remain cautious, awaiting more substantial and lasting signs of recovery before they fully embrace optimism.

Read also: Embracing Inclusivity and Diversity to Solve Labor Shortage in the Trucking Industry

Many in the industry are hesitant to declare a full recovery because rates remain soft due to excess capacity. Morgan Stanley’s Dry Van Truckload Freight Index shows that the 2023 average index remains well below the 10-year average, with 2024 projections offering little improvement. This situation is exacerbated by a 45 percent year-over-year increase in orders for Class 8 trucks, inflating overall motor freight capacity. Consequently, rates have struggled, with DAT Freight and Analytics reporting that spot rates for dry van shipping have fluctuated between $2.01 and $2.20 per mile over the past year. In contrast, contract rates have ranged from $2.48 to $2.73 per mile, significantly down from the peak of $3.28 per mile in June 2023.

Soft rates and excess capacity are a result of the volatility brought on by COVID-19 and the subsequent supply chain crisis. The pandemic saw over 100,000 new registrations for trucking companies. Many of these companies purchased assets at inflated costs, some spending over six figures for a single used truck. When demand suddenly receded in 2022, many of these new companies looked to exit the market. In 2023 alone, more than 1,500 freight brokers and 25,000 asset-based carriers folded, a trend that has continued into 2024. Even the historically stable less-than-truckload (LTL) market has been affected. The bankruptcy of Yellow, one of the industry’s oldest and largest carriers, in August 2023 led to a surge in business for remaining LTL firms as former clients scrambled for new carriers.

Due to outstanding bank loans and prolonged bankruptcies, many unprofitable companies couldn’t smoothly exit the market, creating a bottleneck in capacity reduction. However, there are signs that capacity will exit more rapidly in the near future. For the first time since the pandemic, the number of registration revocations is higher than new registrations. The Federal Motor Carrier Safety Administration (FMCSA) reported a 10.7 percent decrease in brokers and a 7.6 percent decrease in carriers from December 2022 to March 2024.

Looking ahead, the industry’s recovery prospects depend on various factors; Inflation rates, inventory levels, and construction activity will be crucial for boosting demand. The pace of general economic recovery will largely guide the trucking sector.

In the interim, carriers and shippers must adapt their strategies to navigate the challenging landscape. Carriers should focus on process improvements and technology upgrades to better manage costs and optimize asset utilization. Embracing new technologies can enhance operational efficiency, streamline logistics, minimize deadheading, and help identify the best freight matches for their networks. Transitioning from manual planning will offer an opportunity to set new industry standards and improve overall efficiency.

For shippers, diversifying their carrier base will prove crucial. The pandemic highlighted a key vulnerability: over reliance on a few dominant carriers. Shippers must develop a robust network of alternative carriers in the event of geopolitical, environmental, or global health crises. By leveraging advancements in AI and diversifying their carrier networks, shippers can improve service levels and build more resilient supply chains. Technology will also level the playing field, allowing smaller regional carriers to compete by demonstrating their technological capabilities and superior service quality.

The trucking industry’s current challenges present a unique opportunity for digital transformation. Integrating AI and advanced analytics will help the industry move beyond outdated, manual processes and work towards a more efficient and resilient freight ecosystem. These tech investments will come in the form of digital freight-matching platforms, which can enable captive fleet operators to supplement their volume with that of third-party shippers, enhancing utilization and reducing deadhead miles. Route optimization software will further minimize empty miles, and integrated transportation management systems will improve shipment tracking and operational visibility. Additionally, advanced bidding tools will help shippers secure cost-efficient rates while fostering strong relationships with carriers. 

About the Authors 

Balaji Guntur is a Co-Founder, and Chief Executive Officer of HOPTEK, a trucking industry-facing software company, and also a VP in Transportation practice of global strategy and management consultancy Kearney. Sean Maharaj is Chief Commercial Officer of HOPTEK, a Kearney company.

 

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Ergonomic Support For Truck Fleets

For millions of people in the U.S., truck driving is a viable career that provides plenty of rewards. The job also dramatically increases the likelihood of musculoskeletal disorders and other problems. In fact, about four in five truck drivers report dealing with one of these disorders in the past year, commonly involving pain in the neck or lower back. Ergonomic support can change these odds by improving the work environment and minimizing the strain on truck drivers’ bodies. By considering these factors, businesses can understand the importance of maintaining ergonomics for their truck fleets.

Read also: The Road Ahead: Top States for Truckers in 2024

How Truck Driving Can Cause Musculoskeletal Problems

Driving a truck requires a significant range of movements that, when repeated constantly over years, can lead to significant pain and other concerns. A 2015 study revealed that truck drivers were most likely to report neck pain or lower back pain as a result of their duties, but they may also experience numbness, stiffness, or circulation problems. Pain and discomfort come from a variety of situations common to truck drivers, such as improper sitting positions, limited space, difficulty reaching important components, road vibrations, or inadequate seating. Long periods of time in an uncomfortable position can make these problems worse, especially for truck drivers who get little breaks between driving.

Effects of Musculoskeletal Disorders in Truck Drivers

Sitting in a bad position for hours on end can create long-term musculoskeletal disorders and other health conditions. Over time, a slight pain, stiffness, or numbness can decrease feeling and mobility. These concerns present challenges for the truck driver as well as the work they need to complete. Truck driving can be a high-stress occupation, requiring the balance of several systems to maintain safe operation of the vehicle. Distractions due to discomfort can contribute to serious risks on the road. The U.S. Bureau of Labor Statistics notes that truck drivers are nearly three times as likely to encounter a nonfatal injury or illness than the average worker, which may be due in part to unreasonable working conditions.

Reasons to Consider Ergonomics for Truck Drivers

While driving trucks can create so many health problems for workers, ergonomics can prevent or help treat many of them. An ergonomic working environment takes the driver’s needs and perspectives into account, creating a design that fits the driver perfectly. With the right physical support, truck drivers can minimize discomfort and focus more of their attention on driving. They are less likely to need time off to address physical conditions, and they may be more likely to stay in the job. Making sure each driver is comfortable can also increase productivity and boost employee retention, which are key goals for businesses.

Ergonomic Truck Modifications

When shopping for PAI truck parts and other necessary components for a trucking outfit, companies ought to consider ergonomics as an important part of a successful design. Ergonomic supports might include adjustable seating, ergonomic steering wheels, adjustable mirrors, climate controls, smart dashboards, and accessories such as seat cushions, armrests, or backrests.

Ergonomics do not only relate to a driver’s physical position while working. Businesses should evaluate the problems in their current driving workforce to tailor solutions to the most common issues. They can form a plan to maintain brakes and power steering to decrease stress and improve vehicle performance, which eases a truck driver’s concerns and difficulties. Companies may also need to reorganize the way they schedule driving shifts to provide more breaks and incentives for drivers to maintain a healthy approach to driving.

Driving a truck can be a rewarding profession, but it can also be punishing without the right kind of support. Truck drivers are more likely to report issues with pain, stiffness, or numbness related to their daily tasks and the discomfort of sitting still for long periods. Ergonomic truck design can provide solutions to many of these problems by customizing the truck’s cabin function for the driver. By employing these solutions, businesses can increase efficiency and productivity without creating problems for their truck drivers.

Author Bio

Cal Turner is an integral part of the Fitzgerald USA team and is Co-Owner/Operator of Fitzgerald USA Truck Parts Online, a leading provider of high-quality truck parts and accessories. Turner, a University of Tennessee graduate, has been immersed in the trucking industry for nearing a decade. He has spent the last several years expanding on how he can provide unmatched services, products, and expertise in the online truck parts market.

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CPC Logistics Drivers Shine as 2024 NPTC National All-Stars for Safety and Service

Five distinguished drivers from CPC Logistics have earned the prestigious title of 2024 National Driver All-Stars, an award presented by the National Private Truck Council (NPTC) at its annual National Safety Conference, held on September 5 in Orlando, Florida. This honor celebrates drivers who have demonstrated exceptional performance in customer service, safety, regulatory compliance, and community engagement.

Read also: CPC Logistics Honors Hall of Fame and All-Star Drivers at NASCAR Race

The following CPC drivers were recognized for their outstanding contributions:

1. Jose Cruz, based at Toyota Quality Parts Express in South Gate, California

2. Jerrid Gossett, based at Fabri-Kal in Walhalla, South Carolina

3. Ricky Owens, based at Walgreens in Easley, South Carolina

4. Christie Tilton, based at Procter & Gamble in Eaton, Ohio

5. Brian Troutman, based at John Deere in Wayland, Iowa

Troutman reflected on the award, attributing his success to values passed down by his father. “No matter the company name on the truck, treat it like it’s your own. Pride in maintaining your vehicle and satisfying customers is what makes a good driver,” he said.

Since 2009, CPC Logistics has led the industry with 114 drivers named National Driver All-Stars, more than any other company. “It’s an honor to be part of a company like CPC, where everyone genuinely cares about their work and customers,” said Cruz.

In addition to these accolades, CPC’s commitment to safety is reflected in its impressive statistics: 13 drivers inducted into the NPTC Driver Hall of Fame and over 155 drivers with over 1 million accident-free miles.

“Safety is paramount,” Tilton added. “As a trainer, I emphasize the importance of doing things safely from day one, aligning with the customer’s vision for the fleet.”

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Embracing Inclusivity and Diversity to Solve Labor Shortage in the Trucking Industry

Who’s behind the long-haul wheel? Probably not a woman, a person of color, someone under the age of 40, or a member of the LGBTQ+ community since 90% of long-haul truckers are men, with the majority being white and aged between 46 and 64 years old.

Read also: The Continued Fall-Out from Demise of Yellow Trucking

While diversity may not currently be the trucking industry’s strong suit, the times they are a changing. By 2026, the industry will need to recruit 1.1 million new drivers to keep up with demand, opening the door for a more diverse workforce in the driver’s seat.

What Is Diversity in the Trucking Industry?

Diversity, inclusion, and belonging (DI&B) in the workplace means supporting varying perspectives, values, and experiences by recruiting drivers from different races, ethnicities, genders, countries, and religions. DI&B considers abilities and disabilities and generally brings together people with different backgrounds and beliefs.

Many workers, including drivers, prefer spaces they’re familiar with and comfortable in. With diverse workers steadily entering the trucking workforce, companies should implement measures to embrace and support employees with various values and backgrounds.

Opening the doors to talent from youth, women, and minority groups will help increase the workforce while also boosting profits, as studies show companies with a diverse workforce benefit more economically.

Underrepresented Groups in the Trucking Industry and How to Draw Them to the Workforce

Women, youth, people of color, and the LGBTQ+ community are all minorities in the trucking industry, begging the question of why are they underrepresented, and what can be done to attract and retain them in the workforce.

Women

Long-standing prejudices and stereotypes have influenced the idea that trucking is a man’s job, despite women being equally good drivers, with some even outperforming their male counterparts. Women tend to be more reliable and conscientious drivers, better communicators, and able to focus on a task for long periods.

But the tides are turning – according to the Women in Trucking (WIT) Association and the Department of Labor, the truck industry is steadily becoming more inclusive for women, with an 88% increase in female truckers since 2010. There is still a long way to go, however, as women account for only 13.7% of all truckers, due in party to the following hurdles:

Sexual harassment

Studies show that 92% of female truckers have experienced sexual harassment on the job, prompting investigations by the Department of Labor and the media. Female drivers-in-training are the most vulnerable because they are often paired with male trainers for extended periods.

A few solutions include providing same-gender training programs, paying for hotel rooms so long-haul female trainees can sleep safely, installing cameras inside and outside the cab, and encouraging female trainees to instantly report cases of sexual assault and violence to the company and relevant authorities. Hiring more women in management roles can also help address gender bias and provide greater safety and comfort to female truckers.

Compensation Inequality

Compensation plays a crucial role in attracting and retaining truck drivers, however, women truckers make 72 cents to the dollar of their male counterparts. Employers can attract female drivers by ensuring they earn the same rate as male truckers, along with bonuses and other incentives based on performance, not gender.

Poor lifestyle and work-life balance

Long-haul trucking comes with long stretches of days or even weeks spent on the job away from home. Women frequently shoulder the brunt of caring for their families, making working on the road for extended periods a significant roadblock to entering the industry.

Providing flexible work schedules aids women in being able to manage their familial responsibilities. Other work-life balance strategies for female truckers include providing maternity leaves, sick leaves, and child-care benefits.

Truck designs

Trucks have traditionally been designed to be operated by taller, larger, and heavier bodies, making them cumbersome for most women. In an effort to attract more female truckers, trucking companies have begun to design trucks to support all body types. These designs include modified stairs, handrail placement, and adjustable pedals.

Volvo launched new truck designs with easier-to-access controls, more responsive steering, and adjustable seating, offering a more comfortable experience behind the wheel for all drivers.

‍Recruiting strategies that speak to female truckers

Most recruiting promotional materials tend to target only men, even when attempting to attract female drivers. For marketing to be successful, the intended audience needs to feel welcomed and be able to picture themselves in the driver’s seat. Companies should review their recruitment materials to consider if they are incorporating female truckers of different ethnicities, shapes, and sizes in their posters, videos, and pamphlets.

Young People

Young employees are not necessarily a minority but given that most workers in the trucking industry are older, it becomes easier to categorize youth as underrepresented individuals. The Chief economist for the American Trucking Association (ATA) says that the trucking industry will have to recruit about 1 million truckers to replace retiring drivers in the upcoming years.

One effective strategy for attracting young people is a company where minorities are represented. As US Express CEO Eric Fuller said, “Younger people want a diverse community, a diverse workforce, and a diverse company that they can go to.”

Technology

In a high-tech world, truck driving has been viewed as an old-fashioned, low-tech industry by younger generations. Trucking companies can reframe this image by investing in high-tech systems such as routing software, advanced in-cab telematics, driver assistance systems, and electronic proof of delivery (ePOD) software, which will be more attractive to youth while increasing overall productivity and profitability.

Online recruiting and job applications

Recruiting strategies need to meet potential employees where they are at, and today’s youth are found on social media and smartphones. Carriers should post jobs online via websites and social media platforms to help increase their reach while making applications mobile-friendly with preliminary job interviews done online.

Value and Purpose

Research shows that millennials are four times more likely than other generations to leave a job if they find no purpose in it. Trucking companies should ensure workers find meaning in their tasks, feel valued, and have clear paths for career advancement.

In early career stages, most workers are motivated by the prospect of training, development, and better opportunities. Offering drivers the chance to work as dispatchers, team leaders, trainers, or part of operations and management teams provides meaning to their work, making them less likely to seek opportunities elsewhere.

Health and wellness

Truckers are twice as likely to suffer from poor sleep, high blood pressure, and obesity, among other health issues, making some recruits hesitant to sign up. Carriers are stepping up with programs and apps to help employees make healthier meal choices while on the road, get fit, and support their mental health. Making health and wellness a priority helps attract new drivers while making the company’s bottom line a healthy one.

Warehouse-to-driver transition

Federal regulations dictate that a commercial driver’s license (CDL) is available only to drivers 21 years or older, preventing many young people below this driving age from joining the industry.  

Creating a warehouse-to-driver transition program can help establish a hiring pipeline that will see young people work in the trucking company’s warehouse before they reach the age of 21 and can then transition to becoming professional truck drivers.

CDL tuition reimbursement

As with any other career, financial limitations can be quite stressful when studying or beginning a job. Trucking companies can take advantage of this limitation by paying part of the cost of attending CDL school.

LGBTQ+ Community

There are no official statistics on how many LGBTQ+ drivers are in the trucking industry but according to Coffey-Loy, the founder of the LGBTQ+ Truck Driver Network, an organization that represents truckers who don’t identify as straight and connect them with trucking jobs, queer and trans truck drivers have always been on the road. However, most didn’t want the world to know who they were for fear of being discriminated against by other drivers, the public, or when seeking jobs.

Trucking companies can be more visible and open to hiring truckers who identify with the LGBTQ+ community by introducing organizational policies and safety measures to create a safe and inclusive work environment for this minority group, such as allowing drivers to wear pride clothes and including pride flags on their trucks.

Hispanic, Black, and Asian Drivers

As mentioned earlier, the majority of truck drivers are white, with Hispanic truckers a distant second at 23%, followed by Black drivers at 18%, and then the least represented group, Asian drivers with only 4%. Visible minority drivers have reported instances of discrimination by drivers and customers from the majority groups, causing them to resign.

In 2020, Joseph J. Olivares, a bilingual public affairs specialist with the Equal Employment Opportunity Commission (EEOC), said, “When a company says, ‘Well, it’s one bad apple causing this situation,’ it doesn’t really matter because it is the employer’s responsibility to eliminate discrimination in the workplace.”

Company culture is formed from the top down, making it imperative that management supports all employees, regardless of race, creed, color, or sexual orientation. The American Trucking Association has created a comprehensive handbook with DEI Best Practices, available for free here to help create company policies and initiatives to make everyone feel welcomed and valued.

How to Increase Diversity, Inclusion, and Belonging in the Trucking Industry

Setting up DI&B in a trucking company involves creating a safe and comfortable space accommodating all truckers. Such an environment can help enhance job satisfaction, attract more drivers, and reduce turnover.

Establishing Inclusive Hiring Processes

Applicants often judge a company based on what they see in recruiting materials and interviews. Developing a more diverse workforce requires an inclusive hiring procedure, starting with the marketing materials. Having inclusive statements, photos of drivers from different backgrounds, and intentionally showcasing workers from underrepresented groups can help bring inclusion and diversity to an organization from the outset.

Expressing Commitment to Inclusivity and Diversity

Discussing diversity initiatives with the current workforce, potential candidates, and industry contacts can help express efforts to create a more inclusive environment for truckers. Additionally, trucking companies can engage with their drivers regularly to understand their challenges and create strategies to make them feel more comfortable and safe at the workplace.

Helping Drivers Find Their Community

Creating a sense of community can help underrepresented drivers get the support they need while making them feel included. Companies could establish groups to support diverse truckers and also promote larger communities to their employees, such as LGBTQ Truckers, Black Truckers United, and Women in Trucking.

Celebrating the Diverse Team

People work best when they feel supported, recognized, and celebrated. Featuring minority communities in a company’s marketing materials, on social media, and on the website are excellent ways to show support. Consider giving recognition when drivers perform well or reach certain milestones.

Companies can also show support by celebrating Women’s Day, Mother’s Day, Black History Month, National Hispanic Heritage Month, and LGBTQ+ holidays.

Hiring Foreign Truck Drivers

Another option for ensuring diversity in the trucking sector while overcoming the workplace shortage is sourcing talent from abroad. With thousands of truckers from Latin America, Asia, and Eastern Europe looking for jobs in the United States, companies can tap into these markets via the EB-3 Visa Program, allowing foreign workers to obtain their Green Cards and permanent residency.

Although there are specific qualifications and a series of applications to be submitted, working with EB-3 Visa experts can simplify the process, help employers find motivated and loyal qualified truck drivers from overseas, and even assist foreign hires in acclimating to their new jobs and community.

Creating an environment of inclusivity that welcomes underrepresented drivers such as women, visible minorities, LGBTQ+, and younger people, will help keep America’s trucking industry rolling today and for years to come.    

Author Bio

John E. Dorer is an accomplished Global Mobility Executive with over 23 years of hands-on experience in the field. As the CEO of eb3.work, he leads an expert team of immigration attorneys and recruiters committed to solving the pervasive problem of entry-level labor shortages through employer-sponsored green card programs, particularly the EB-3 visa program.

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Freight Cost Optimization: Reducing Deadheading, Factoring, and Fuel 

Trucking industry market ebbs and flows are expected. Costs associated with operating a truck are also to be anticipated. During these times, partnering with a third-party logistics (3PL) provider can be very helpful for smaller fleet owners. 

How Carriers Can Easily Combat Frequent Obstacles in the Industry

Third-party logistics providers help carriers effectively reduce deadhead miles, accelerate their payment cycles, improve their factoring, and lower fuel expenses. Working with a 3PL that offers a wide range of loads can significantly reduce dead miles, thereby maximizing their earnings. Partnering with a reputable 3PL can provide carriers with access to a diverse pool of loads, enabling them to better manage their deadheading. 

1. Deadhead Miles

Truck drivers all understand this universal concept – driving without freight means losing money. This issue ranks high among the most frequent complaints from carriers in the supply chain field. Numerous factors that contribute to this problem are beyond the carriers’ control, such as labor, cost of the truck, and maintenance. However, one big factor carriers can control is dead miles.

Third-party logistics providers can help carriers minimize deadhead miles, which is key to maximizing profitability. To address this challenge effectively, small carriers can benefit greatly from partnering with a reliable 3PL that manages a vast network of available loads, which results in more volume and opportunities for closing the gap between where they made their last delivery and where they’ll pick up their next load.

According to a study conducted in 2021 by the American Transportation Research Institute, an average truck driver in the United States covers approximately 100,000 miles per year, of which around 20% are deadhead miles. This statistic emphasizes the financial impact of inefficient routing and underutilized truck capacity. 

Minimizing dead miles is crucial for truck drivers to optimize their financial returns. While various factors affecting carriers’ profitability are beyond their control, carriers do have options when it comes to finding ways to reduce deadheading, factoring, and fuel costs. 

2. Factoring

A small carrier can get into catastrophic trouble if they’re factoring their money, because they’re basically giving what would be profit away. Partnering with a 3PL with a carrier’s interest in mind means helping them to get the best loads and rates, especially when the market gets quiet.

Another crucial advantage of partnering with a 3PL is the ability to get paid quicker and enhance the factoring process. Third-party logistics providers often have established relationships with shippers, which enables them to negotiate faster payment terms for carriers. 

Carriers can benefit from quicker payment cycles that bring a steady cash flow to cover operational expenses, fuel costs, and driver wages. Some 3PLs even offer factoring services that are less expensive than a bank’s fees, allowing carriers to receive immediate payment for their delivered loads and eliminating the need to wait for payment from the shipper. This streamlined process not only helps carriers improve their financial stability but also reduces administrative tasks associated with invoicing and collections.

3. Fuel

Fuel costs continue to be a daunting pain point for carriers, especially with the unpredictable fluctuations in oil prices. But, partnering with a 3PL is an easy way to reduce fuel expenses through optimized routing and load consolidation. A reputable 3PL has access to advanced technology and data analytics, allowing them to plan efficient routes that minimize unnecessary detours and empty miles.

Through maximizing load utilization and minimizing deadhead miles, drivers can significantly reduce fuel consumption and, in turn, lower their overall fuel costs. This not only translates into financial savings but also contributes to a greener and more sustainable transportation industry.

Working with a trusted 3PL helps carriers increase profitability and operational efficiency by reducing deadhead miles, accelerating payment cycles, improving factoring options, and lowering fuel costs. 

With a straightforward approach and the right partnership, carriers can overcome hurdles, thrive in their business, and build a brighter future for themselves and their drivers.

Karl Fillhouer is the Vice President of Sales and Operations of Circle Logistics, a privately held third-party logistics company committed to delivering on three core promises to their customers: No Fail Service, Personalized Communication, and Innovative Solutions. Circle Logistics leverages its technology, industry experience, and employee ingenuity to develop industry-leading transportation solutions. For more information, visit https://circledelivers.com/