The trucking industry is the backbone of the U.S. economy, responsible for moving 72% of all freight, according to the American Trucking Associations. Without trucking, supply chains would collapse, store shelves would remain empty, and businesses would struggle to operate efficiently. Despite the critical role of trucking to the economy, the industry is facing significant challenges.
Why is the trucking industry struggling, and what are the possible solutions to chronic issues? Considering the industry's annual revenue is approaching $1 trillion dollars, it's clear that freight is a vital part of what keeps everything going. In this blog, we’ll explore the biggest obstacles facing trucking carriers and fleets today and provide actionable solutions to help recruiters and safety teams navigate these challenges.
Why Is the Trucking Industry Slowing Down?
Over the past few years, several factors have contributed to the slowdown of the trucking industry:
- Economic downturns have reduced freight demand, making it harder for carriers to maintain profitability. The trucking industry has seen an overall 8-10% drop in freight volumes since 2022, with lower consumer spending impacting freight movement.
- Supply chain disruptions stemming from labor shortages, port congestion, and global trade fluctuations have delayed shipments and increased costs. According to recent industry data, average port wait times in North America increased by an average of 19.1 hours due to supply chain bottlenecks.
- Ongoing labor shortages have left fleets scrambling to find and retain qualified drivers. The trucking industry currently faces a shortage of approximately 80,000 drivers, which experts predict could exceed 160,000 by 2030 if trends continue.
- The COVID-19 global pandemic caused widespread disruptions, leading to increased operational costs, shifts in freight demand, and long-term labor shortages. Many small carriers shut down, while larger fleets had to adapt to new safety protocols and volatile fuel prices.
According to industry reports, trucking spot rates have declined significantly—down by 20-30% year-over-year in some sectors—while operational costs continue to rise, squeezing profit margins for many carriers. These trends not only affect trucking businesses but also have a ripple effect on retailers and consumers who rely on timely deliveries.
However, with economic stabilization on the horizon, freight demand is expected to recover in 2025, offering a much-needed boost to carrier profitability. As supply chain bottlenecks ease and consumer demand rebounds, trucking companies that proactively adapt to market shifts will be in a strong position to capitalize on these improvements.
In the second quarter of 2024, shipment requests increased by 9% year-over-year, indicating a potential rebound in the industry. Forward-thinking fleets investing in technology, driver retention, and efficiency measures now will be best equipped to take advantage of the rising rates and a more favorable market in the coming year.
8 Big Problems in the Trucking Industry (And How to Fix Them)
Understanding the industry's biggest challenges is the first step in overcoming them. Across the board, three common themes emerge: the mistreatment and undervaluation of drivers, the industry's slow adoption of modern technology, and a volatile regulatory landscape that creates uncertainty for carriers.
Many of these problems stem from outdated policies and operational models that fail to address the needs of drivers, including better pay, safer working conditions, and access to mental health and healthcare resources. Additionally, while other industries have embraced automation and AI-driven efficiencies, trucking has been slow to modernize, leading to costly inefficiencies.
Since 2025 started off with a new administration in the White House, the industry anticipates possible regulatory shifts this year and beyond, potentially influencing everything from fuel costs to safety mandates. Fleets that take proactive steps now—by investing in their drivers, adopting new technology, and preparing for regulatory changes—will be better positioned for long-term success. Here are some of the most pressing problems and potential solutions:
1. The Ongoing Truck Driver Shortage
Why It’s Happening:
- An aging workforce with fewer young drivers entering the profession. The average age of a truck driver in the U.S. is 48 years old, and many are nearing retirement.
- Difficult working conditions and long hours contribute to high turnover. In 2023, turnover rates for large truckload carriers remained above 90%.
- Increased competition from other industries offering better work-life balance, drawing potential drivers away from trucking careers.
- The high cost of obtaining a Commercial Driver’s License (CDL) can be a barrier to entry, with training programs costing anywhere from $3,000 to $10,000.
- An estimated 25% of the current driver workforce is expected to retire by 2030, exacerbating the shortage.
Impact:
- Shipment delays that disrupt supply chains and increase costs for shippers.
- Higher freight costs, with some trucking companies raising rates to offset recruitment challenges.
- Increased pressure on existing drivers, leading to fatigue and safety concerns.
- A growing reliance on inexperienced drivers, increasing accident risks and insurance premiums.
Solution:
- Competitive pay and benefits to attract and retain drivers, including performance-based incentives and signing bonuses.
- Tech-driven recruitment & retention strategies, such as using DriverReach to streamline hiring, onboarding, and compliance management.
- Automated application tracking to speed up the hiring process and reduce administrative burdens.
- Driver training and mentorship programs to help new drivers succeed and stay in the industry.
- Good News: More fleets are investing in apprenticeship programs and tuition reimbursement for CDL training, helping attract younger drivers. Additionally, new federal initiatives aimed at improving working conditions and promoting workforce development could help alleviate the shortage over the next few years.
2. Stricter Regulations & Compliance
Why It’s Happening:
- The FMCSA Clearinghouse continues to evolve, with FMCSA Clearinghouse II rules rolled out in November 2024, tightening enforcement of drug and alcohol violations and requiring enhanced reporting.
- Drug & Alcohol Testing regulations now include expanded random testing pools and stricter return-to-duty procedures.
- Hours of Service (HOS) regulations remain complex, with ongoing modifications affecting break times and duty limits.
- Speed limiter mandates have been proposed to cap truck speeds, affecting fleet operations.
- Environmental regulations are increasing, pushing fleets to adopt cleaner technologies like electric or hydrogen-powered trucks.
- Compliance requirements are constantly evolving, making it difficult for fleets to stay up-to-date.
Impact:
- Increased administrative burden with stricter reporting requirements.
- Higher risk of penalties and fines for non-compliance.
- Rising operational costs due to new compliance mandates.
- Increased pressure on fleets to invest in green technologies and low-emission vehicles.
Solution:
- Invest in compliance software like DriverReach for:
- Automated Driver Qualification File (DQF) management to stay audit-ready.
- Real-time compliance tracking and digital record-keeping to prevent violations.
- Continuous MVR monitoring to meet the latest FMCSA requirements.
- Regular compliance training for drivers and fleet managers to stay updated.
- Adopt digital logging devices (ELDs) for improved record-keeping and HOS compliance.
- Prepare for future environmental mandates by integrating sustainable fleet solutions like alternative fuels and fuel-efficient vehicle technologies.
- Stay ahead of regulatory changes with proactive fleet management strategies, including participation in industry advocacy groups to influence future policies.
3. Rising Fuel Costs & Inflation
Why It’s Happening:
- Volatile oil prices and global economic shifts.
- Increased demand for fuel as industries recover from economic downturns.
- Limited refinery capacity leading to supply constraints.
- Average diesel prices have increased by over 35% since 2021, with costs reaching as high as $5.50 per gallon in mid-2022.
- Fuel costs now account for nearly 25% of total operating expenses for trucking companies.
- In 2023 alone, the average price of diesel increased by 15%, further straining fleet budgets.
Impact:
- Increased operational costs, squeezing already tight profit margins.
- Lower profitability for carriers, especially small and mid-sized fleets.
- Fuel surcharges being passed on to shippers and consumers, increasing overall freight costs.
- Greater financial pressure on independent owner-operators.
Solution:
- Route optimization for fuel efficiency using AI-driven software to minimize mileage and idle time.
- Investing in fuel-efficient vehicles and alternative fuels such as electric and hydrogen-powered trucks to reduce dependence on diesel.
- Fuel hedging strategies to protect against price volatility and lock in more predictable fuel costs.
- Regular vehicle maintenance and driver training to improve fuel economy and reduce unnecessary fuel consumption.
- Exploring government incentives and grants for fleets transitioning to alternative energy sources.
4. Supply Chain Disruptions & Freight Delays
Why It’s Happening:
- Labor shortages in trucking, warehousing, and ports have slowed down supply chain efficiency.
- Port congestion has increased average wait times for container processing by up to 45% compared to pre-pandemic levels.
- Freight rail delays have led to increased backlogs and transit times, with average wait times rising by 30% since 2022.
- Extreme weather events such as hurricanes and snowstorms have disrupted transportation routes and caused supply chain instability.
- Geopolitical instability and global trade shifts have impacted cargo flows, leading to delays in international shipments.
- Increased reliance on just-in-time inventory models, making supply chains more fragile and prone to disruption.
Impact:
- Longer transit times, with cross-country shipments taking 20–30% longer than historical averages.
- Higher freight rates due to constrained capacity and increased demand for available trucks.
- Missed delivery deadlines, leading to fines and contract penalties for carriers and shippers.
- Rising consumer prices, as delayed shipments and higher transport costs are passed down the supply chain.
- Inventory shortages, affecting manufacturers, retailers, and consumers alike.
Solution:
- Better load planning and freight matching using advanced logistics technology to reduce deadhead miles and increase efficiency.
- Digital tracking for real-time updates, enabling improved transparency, communication, and proactive problem-solving.
- Strategic warehousing and distribution planning, including regional hubs to minimize reliance on long-haul shipments.
- Diversifying supply chain routes to mitigate risks associated with congestion or weather-related disruptions.
- Increased investment in intermodal transportation, combining trucking, rail, and shipping to improve flexibility and resilience.
5. Skyrocketing Insurance Costs
Why It’s Happening:
- Increased accident rates and legal claims have led to rising insurance costs.
- Nuclear verdicts, or exceptionally high jury awards, have surged by 967% between 2010 and 2018, causing insurers to raise premiums drastically.
- Higher risk assessments leading to stricter underwriting requirements.
- More lawsuits targeting trucking companies, leading to increased legal expenses.
- The average commercial truck insurance premium increased by 47% between 2018 and 2023, with some fleets seeing hikes as high as 60%.
Impact:
- Higher operational costs, forcing smaller carriers out of business.
- Increased financial pressure on independent owner-operators.
- Difficulty in securing affordable insurance, especially for new drivers.
- Greater scrutiny from insurers, making it harder for fleets to expand.
Solution:
- Types of Insurance Needed:
- Primary Liability Insurance (mandated by FMCSA, covering at least $750,000 in damages).
- Physical Damage Coverage to protect fleet assets.
- Cargo Insurance for load protection.
- General Liability Insurance to cover non-driving incidents.
- Workers’ Compensation for employee injury coverage.
- Improved driver safety training & compliance tracking using comprehensive software like DriverReach to minimize risk with data.
- Utilizing insurance analytics to identify high-risk drivers and implement targeted safety measures.
- Legal defense planning to mitigate nuclear verdict risks by proactively addressing compliance and safety concerns.
6. Driver Fatigue & Mental Health Challenges
Why It’s Happening:
- Long hours, inconsistent rest breaks, and isolation.
- Increased regulatory pressure leading to stress.
- Lack of access to mental health resources for drivers.
- The average life expectancy of a CDL driver is only 61 years old, significantly lower than the national average.
- Poor diet, lack of exercise, and limited healthcare access contribute to long-term health problems.
- Growing awareness of mental health challenges, including stress, anxiety, and depression among drivers.
Impact:
- Higher accident rates due to fatigue and reduced reaction times.
- Lower job satisfaction and retention, exacerbating the driver shortage crisis.
- Increased risk of burnout leading to higher turnover and operational inefficiencies.
- Greater healthcare costs and long-term disability claims for fleets and drivers.
Solution:
- Enforce mandatory rest breaks and fatigue management policies to ensure driver well-being.
- Use software to track HOS compliance and prevent excessive driving hours.
- Provide mental health resources and support programs, such as on-demand counseling, wellness initiatives, and peer support networks.
- Encourage healthier lifestyles by providing nutrition education, exercise programs, and access to routine health screenings.
- Forward-thinking companies are prioritizing driver health with programs that address both physical and mental well-being, ensuring a more sustainable workforce.
- Partner with PROJECT 61 to demonstrate your company's commitment to driver health.
7. Freight Recession & Market Uncertainty
Why It’s Happening:
- Lower freight demand leading to excess capacity.
- Economic fluctuations reduce consumer spending and trade activity.
- Increased competition among carriers driving down rates.
- Rising interest rates have impacted business investments, slowing growth across multiple sectors.
Impact:
- Rate volatility, making it difficult for carriers to plan long-term operations.
- Lower trucking profits, forcing some companies to downsize or exit the market.
- Increased financial instability for small carriers struggling to stay competitive.
Solution:
- Diversify freight contracts to maintain a steady stream of business and reduce dependence on any one sector.
- Use real-time data analysis to stay adaptive and respond to market changes quickly.
- Develop strategic partnerships with shippers and logistics providers to secure long-term contracts.
- Good News for 2025: Industry forecasts indicate that freight rates are expected to rise, driven by a tightening capacity and stronger economic recovery. Carriers who strategically position themselves now can benefit from the upswing in demand and improved margins.
8. Poor Driver Retention Rates
Why It’s Happening:
- Lack of career growth opportunities and professional development.
- Poor work-life balance due to long hours and time away from home.
- Insufficient driver support, including inadequate access to healthcare and mental health resources.
- Rising stress levels caused by regulatory pressures and tight delivery schedules.
- High turnover rates in the industry due to limited job satisfaction and burnout.
Impact:
- Increased recruitment and training costs for fleets, leading to higher operational expenses.
- Reduced efficiency as fleets struggle to replace experienced drivers.
- Lower job satisfaction, contributing to a negative cycle of hiring and turnover.
- Safety risks associated with relying on inexperienced drivers.
Solution:
- Invest in career development programs, including mentorship opportunities and CDL advancement courses to provide clear career growth paths.
- Improve work-life balance initiatives, such as flexible scheduling and more home time options.
- Prioritize driver well-being, offering better access to healthcare, mental health support, and fitness programs.
- Enhance driver communication and engagement through technology like DriverReach, ensuring better connectivity with fleet management and increased job satisfaction.
- Industry-wide shift towards valuing drivers as key stakeholders, ensuring competitive wages, respect, and recognition for their essential contributions.
How DriverReach Helped R.E. Garrison Win
R.E. Garrison Trucking is known for their deep dedication to drivers. Their commitment to putting the driver first helped R.E. Garrison to become a destination employer, eliminating the poor driver retention rates that trouble so many trucking companies.
The Problem
Despite a strong reputation and steady applicant flow, R.E. Garrison Trucking (REG) struggled with an inefficient, fragmented hiring process. Recruiting tasks were spread across multiple roles, leading to missed opportunities, wasted time, and high costs. To make matters worse, their previous applicant tracking system (ATS) leaked driver leads to competitors.
The Solution
DriverReach provided a centralized recruiting and compliance platform, streamlining the hiring process. Key improvements included:
- Lead Management & Compliance Tracking: One platform for real-time applicant visibility.
- Smarter Ad Spend: Redirected marketing dollars to high-performing channels.
- Data Security: Prevented competitor access to driver leads.
- Recruiter Efficiency: Automated background checks and compliance tracking.
The Results
🚛 100% increase in hiring within three months
💰 50% reduction in marketing costs (from $1M to $500K)
📈 Recruiting team efficiency improved significantly
🔐 Secured driver data, eliminating competitive leaks
🎯 Established REG as a destination employer
By leveraging DriverReach, R.E. Garrison transformed its hiring process, achieving record-breaking recruitment while cutting costs and improving retention. Get the full details of how REG made the shift with the full case study 👇
Investing in Trucking’s Future
The trucking industry faces numerous challenges, but solutions exist. By leveraging technology, improving working conditions, and staying proactive with compliance and safety measures, fleets can overcome these hurdles and remain competitive. Investing in tools like DriverReach can help carriers streamline operations, reduce costs, and improve driver retention.
If you're struggling with recruitment, compliance, or retention, consider adopting tech-driven solutions to future-proof your business. The road ahead may be tough, but with the right strategies, the industry can navigate these challenges successfully.
