How the Trucker Shortage is Affecting Supply Chains

The trucking business accounts for goods’ delivery over land all over the world, and it is arguably the most important part of any global supply chain. But with the increasing number of truckers leaving the profession, that gap is rapidly increasing. Caused by an old worker demographic, sharp turnover rates and a high-pressure work environment, this gap isn’t only growing within regions but across the globe entirely too – all of which are having terrible effects on global supply chain resilience as well as the movement of goods.

Lateness and Increased Costs of Transport Services

One of the more noticeable repercussions caused by the trucker shortage is the time taken to deliver goods. Reports say that such shortage leads to some businesses delivering their goods out of time, and with a significant amount of their goods. This is also caused by the lack of drivers, meaning that many companies are more competitive than ever in acquiring trucking transportation. Speaking of competitive areas, fuel prices and inflation are more than a few of the problems which lead to increased pricing on transporting and can increase the cost of goods sold.

Lessened Inventory Figures and Stockouts

Making up for the lack of supply can be hard for companies, especially as we are speaking about an industry in which hiring more drivers, or truckers can be difficult. This is quite common for retailers, as they constantly experience strong demand during certain seasons, leading to rapid depletion of stock levels or over-enough supply, as transporting those goods to storage and retail require time and basic resources.

This disruption compelled corporations to reconsider their inventory policies, one such policy being the employment of just-in-case strategies rather than just-in-time, this would further increase costs within the chain market.

Pressure on Drivers and Fleet Operators

There is a trucker shortage, which means that the employees who remain will work harder in tougher conditions, and this results in longer delivery times. The federal government has set time restrictions in which drivers can operate but due to demand, these regulations are being stretched. Fleet managers are left with no choice but to raise salaries and provide benefits so that their employees do not leave and new ones can be attracted, this makes costs shoot through the roof. Even after all the investment into higher salaries and wages, demand is still outpacing the supply of workers available.

Long-Term Implications for Global Trade

There is a missing link internationally which has the possibility of cutting across countries and regions, the shortage of truckers. Due to lack of truck availability, the ports and other logistics hubs are unable to operate freely and effectively, as a result their work gets delayed. This lack of transportation leads to longer lead times, less productivity, as well as decreased economics. The shortage of truckers is not an easy issue, as it requires a multi-step answer of providing better working conditions for truckers, modern solutions, and new policies for recruitment.

The gap between demand and supply in the trucking industry is ever-increasing, leading to unprecedented delays and disruptions across the globe.

The situation is so difficult that companies must come up with solutions to change their logistics strategies and also lend a hand in building a balanced trucking workforce.

Note: For more information, visit IRS website