For the second consecutive year, the economy is the transportation industry's top concern, according to American Transportation Research Institute's (ATRI) 20th annual Top Industry Issues report released Saturday at the American Trucking Associations Management Conference and Exhibition in Nashville.
The impact of rising operational costs bundled with a lingering freight recession and stagnant rates put the economy as a top concern for motor carriers and drivers, said ATRI President and Chief Operating Officer Rebecca Brewster, adding recovery from two recent hurricanes and a looming presidential election will likely add more near-term uncertainty.
"It's tough to run a trucking company," said PGT Trucking (CCJ Top 250, No. 78) President Gregg Troian. "What's made it worse is the boom times we had a couple years ago. You've got to train all your people that they have to call and ask for business. They've got to work. If you continue to work hard at getting freight, keeping your trucks loaded, and be smart about the freight you accept... I think you can get through this tough time. We've had some bad months, but we've also had some months that were surprising. It's just another cycle as far as I'm concerned."
After first cresting the $2 per mile mark in 2022, the overall marginal costs of operating a truck hit a new record $2.270 per mile in 2023, according to ATRI's most recent operational costs study. Cost per mile has climbed 62.4 cents since 2020.
A recent survey of fleet leadership conducted by CCJ revealed their top concern was rising equipment costs (71%), followed by rising labor costs (55%). The inability to hire enough quality drivers was third at 50%. Rounding out the top five are a weak freight environment (47%), and excessive regulations and the political climate in Washington, a tie at 46% each. Rising equipment costs was the top problem cited in the CCJ survey by both for-hire and private fleets. For-hire carrier rated the inability to hire enough quality drivers number two, while private fleets cited rising labor costs.
The rest of ATRI's Top 10
A lack of truck parking maintained its position as the No. 2 issue overall on ATRI's list and is the top concern among drivers. Lawsuit abuse reform is No. 3, its highest ranking in the 20-year history of the Top Industry Issues survey. Troian said he thinks defense attorneys haven't kept pace with plaintiff's attorneys when it comes to defending carriers in crash cases, adding, "if you've ever talked with a plaintiff's attorney, you'd be surprised at what they know and what they've learned (about trucking)."
Somewhat related, insurance cost/availability climbed eight spots (the biggest jump of any response on the list) is the No. 4 overall concern after landing at No. 12 last year. Rounding out the top five once again this year is driver compensation.
[Related: Despite headwinds, most drivers expect to make the same or more money this year]
Battery electric vehicles, which first appeared on the 2023 survey as a top concern, jumped four spots this year to No. 6. Concern over the Federal Motor Carrier Safety Administration (FMCSA) safety measurement system, Compliance Safety Accountability (CSA) moved back into the top 10 at No. 7 this year after falling off the list in 2023. Fourteen years after CSA was first implemented by FMCSA, and despite numerous, tweaks, updates and changes to the scoring methodologies, Brewster said motor carriers still have concerns and misunderstandings with how their safety performance is evaluated and scored by the agency.
Detention/delay at customer facilities, No. 8, first appeared in the top 10 list in 2019 as the No. 4 issue overall. Since that time, it has dropped in ranking, but this year is up one spot from last year. ATRI’s latest detention research found that the industry lost 135.9 million hours of driver productivity in 2023 – more than $11 billion of lost revenue industry-wide.
Brewster noted detention also leads to safety problems, because "detained drivers actually drive faster before and after detention."
Troian said detention has also become a challenge for driver retention, although driver retention as an ongoing concern fell off the top 10 list for the first time. "We've lost drivers over detention. Drivers don't want to sit," he said. "Sitting is the worst thing that can happen for a driver."
The driver shortage fell for the third year in a row, landing at No. 9 – its lowest ranking ever in the survey, although Brewster noted it was still an important industry-wide issue.
"It doesn't seem to ever get any better," said Troian. "It seems like you solve some of the problem, and here comes another." Troian noted marijuana use is an obstacle for would-be drivers because, while legal in multiple states, there is a zero tolerance federal policy for commercial drivers.
Driver distraction, No. 10, first appeared in the Top 10 list in 2014, at no. 10 overall and then dropped off until last year when it ranked seventh overall. Among law enforcement respondents to this year’s survey, driver distraction was the number one concern.
Over 3,700 trucking industry stakeholders participated in this year’s survey, including motor carriers, truck drivers, industry suppliers, driver trainers, and law enforcement among other groups.
