How Global Events Can Impact – And Revitalize – The U.S. Trucking Industry

For months now we have seen headlines about strained supply lines in the United States. All sectors from retail to housing, healthcare, technology, and more are experiencing a lack of supplies, inventory, and raw materials sitting at the docks waiting to be unloaded and hauled. The looming shadow of inflation is causing prices to rise for raw and finished goods. Add to this the recent events in Ukraine, and fuel prices are skyrocketing for owner-operators and carriers alike. While it seems like things are at a standstill, the truth is that these global events could end up jumpstarting the trucking industry in the United States and forcing a change for the better.

Cleaner Vehicles and Fuel Independence

Oil is still a driving factor for international conflict, as it has been since the second half of the 20th Century. Prices at the pump were on the rise before the conflict in Ukraine, and now they are astronomical. If the trucking industry cannot perform “business as usual” due to the budgetary strains of rising fuel prices, then this may be a signal that it is time to change how business is done. Commercial vehicle manufacturers started a big shift to produce electric vehicles last year. This latest conflict and the resulting prices may force carriers to make the big switch to all-electric fleets. The short-term cost would have long-term savings and allow the trucking industry to achieve independence from wildly fluctuating fuel prices.

Better Pricing for the Trucking Industry

With strained supply chains, trucking companies have been in high demand. The trucking industry has surpassed freight in 2022 simply because carriers are more efficient, more prolific, and can reach more areas faster than trains. Shippers, business customers, and consumers are relying on the trucking industry to mitigate supply chain issues in the interim. While the current situation places a lot of pressure on the trucking industry, it also gives carriers more leverage when negotiating prices for shipments. Cargo cannot sit at the docks, and shippers desperately need to get stuff to its destination so they can make room for new products. The international bottleneck needs to be widened, and carriers have an opportunity to generate a lot of revenue in the process. After a few years where shippers were in control due to over-ordering and the empty threat of tariffs, trucking companies now have the upper hand in dictating pricing and terms for shipments.

Jobs Are Rising in the Trucking Industry

The unemployment rate hit a record low after 2020, and more jobs were being filled than at any point during the first two years of the pandemic. Those numbers included the trucking industry, as more people found careers in stable sectors where demands and earnings were better than their pre-pandemic jobs. Additionally, more owner-operators launched their own trucking companies to better serve regions where larger carriers could not reach, and to haul shipments for local businesses, and even farms. Considering carriers have more leverage when negotiating prices and the sheer demand for drivers, new and small carriers are positioned for long-term success in the current freight landscape. As the number of domestic trucking companies rises in the United States, the issues caused by international trade and containers sitting in our ports can be cleared up efficiently.

Solutions for Revitalizing the Trucking Industry

Single Point Capital is a leader in providing solutions to the trucking industry. Our comprehensive freight bill factoring services ensure trucking companies of every size have healthy cash flow and immediate access to working capital without placing unnecessary debt on the books. We offer unparalleled fuel discounts to mitigate prices at the pump and offset budgetary costs for trucking companies. We also offer a startup program to help our clients launch their own trucking companies. We offer assistance with permits, licenses, and other forms, as well as special insurance programs to streamline the entire process. Whether you need to factor receivables and access funds in a single day, if you want incredible discounts on fuel, help with insurance, or if you want to launch your own trucking company, Single Point Capital has you covered. Contact our team today and find out why we are the one-stop-shop for the trucking industry in the United States.