It is hard to believe that another year is ending. What expectations are forecasted as we start a new decade? It is estimated by the American Trucking Association that the increase in freight tonnage by the year 2030 will increase by 25.6% to an estimated annual 20.6 billion tons. They also state that close to 71% is currently moved on trucks. The market share of this increase is likely to decrease in the trucking industry to 68.8%.
It is intermodal rail, pipeline movement, air and domestic waterborne transportation that is expected to experience growth over the next few years. With the volume of freight moving about, it should make truck brokers stop and think. Why does it seem that there will be a decrease when trucking is such a critical mode of transportation?
There has been a lot of talk about the trucking industry going into a recession. Tariff issues and trade wars have affected transportation. Truck rates have decreased, which can lead to problems such as poor quality of shipment to trucking companies going out of business. With the average age of drivers, retirement is adding to the existing problem of a driver shortage. Businesses are having a hard time recruiting new drivers.
Whatever the reason, transportation brokerages need to take the time now to look over their business model. It is necessary to evaluate future goals and determine what steps are needed to accomplish these goals. Brokerages may need to investigate expanding into other areas of transportation as needs arise.
As you exit one decade and continue into the next, we wish you a profitable and successful business year!