Tesla Company has become a driving force in the electric car market influencing other companies to follow its trend. The company is a household name as far as the electrical transport industry is concerned yet the company has not ventured into the electric truck business. Currently, heavy electric cars are already on the roads of Southern California, and Tesla has recently joined the race. Elon Musk announced that the company would commence the production of the Tesla Semi come 2019.
In the midst of all the positive remarks about the Tesla truck, there are those who are skeptical about the idea. One of those in doubt is Michael Baudendistel who is an analyst at Stifel Financial Corp. he told Truck.com that the presentation of tesla Semi raised more question instead of answering the already existing ones. He agrees that the truck may be presentable, but the questions that economic dynamics surrounding the truck. Relevant information such as the weight of the car was not released. He insisted that information such as the weight is vital because having more weight restrains the truck from hauling more freight. Another person who is a skeptic of the Tesla Semi is the president of ACT research, Kenny Vieth. His major concern is whether the technology will accommodate long-haul routes. He said that the current recharging infrastructure and the cost could not sustain long-distance trucks.
Speaking to Trucks.com, Antii Lindstrom a trucking industry analyst at HIS Markit, expressed his excitement about the “energy” that Musk is bringing to the market. He also added that the leading companies in the truck industry fear the impact that the Tesla Semi will bring to the market. According to Lindstrom, the aerodynamic design gives Tesla Semi gives it a taller and narrower shape to improve its speed, unlike the ordinary diesel trucks. The truck is expected to gain from zero to 60mph in 5 seconds with no trailer, and from zero to 60mph when loaded to its maximum capacity. The car will travel up to 500 miles once charged he added. Although Lindstrom is adamant about the success of Tesla Semi, he is concerned with the conservative nature of the truck industry that is blocking new ideas.
Various companies have already placed orders for the Tesla trucks. Ryan Curell, the retailer’s spokesman at Walmart stores Inc. told Truck.com the retail company had ordered 15 Tesla Semi. He said that Walmart has a history of embracing new technology and the inclusion of the electric trucks to its supply chain across the U.S. and Canada will be a big leap. Another company that has also placed orders is the J.B. Hunt Transport Service Inc. The chief Executive; John Roberts was quick to show his delight on the “sustainable technology” that the Tesla Semi is expected to bring to the market.
However, Fred Andersky, the customer solutions director for Bendix Commercial Vehicle Systems, concluded that, as much as there is divided opinion about what Tesla is bringing to the market, what stands out is that Tesla is creating disruption is the truck industry. Many companies will move with the trend that Tesla is bringing.
Lack of efficiency, transparency and high costs are the main challenges facing the trucking industry today. Shippers, brokers, carriers, vendors and other stakeholders in the trucking industry have always been longing for a secure systems that is fast and makes their work easier with almost no errors and minimum hustle.
The adoption of blockchain technology into the trucking industry is set to revolutionize the way transactions across the supply chain are conducted, through introducing more efficiency and transparency by bringing all the industry players under one roof. It will also enable supply-chain participants handle data faster, more securely and with less errors and labor cost.
One of the biggest challenges players in the trucking industry face is access to data on where to get the right truck for the right job. At any given time, there is a truck running on the road empty. Blockchain technology creates a network of trucking companies where companies in need of trucking services are able to choose the right truck for the right job without much effort. Interaction between different players in the system is set to create new relationships, hence more business opportunities. Trucking companies, especially small ones will have the opportunity to be visible in the market by adopting this technology. Companies will also have opportunity to get the best service at more competitive prices.
Transparency is one of the main challenges facing different players in the transportation industry. blockchain technology eliminates the need for middle-men, enabling trucking companies deal more directly with their clients. This will also help in the reduction of cost, while maintaining the integrity of the processes by eliminating third parties. Increased transparency will also help lower cost since customers will have a pool of information on different charges by different companies. This will force companies previously charging high amounts to lower their charges in order to remain competitive.
Elimination of payment disputes is a major solution blockchain will solve. Through standardization of all transactions where contracts will be executed and transactions cleared at the same time with transparency, therefore eliminating the back and forth between the parties.
Another very important feature blockchain technology introduces into the tracking industry is space or capacity monitoring. The ability determine the amount of space a customer may need based on cargo volume versus what’s available will help reduce overcharging as it helps pre-determine the cost to be incurred. This will greatly help reduce transportation costs especially.
Through increased transparency and standardization of processes, blockchain technology will help tame fraud in the trucking industry by eliminating many of the middle-men, reducing data processing times and easier tracking of goods. There is also a higher degree of verifiability in the system. All this will lead to natural selection hence elimination of rogue players in the industry.
One of the biggest and unusual beneficiaries of the widespread adoption of this technology in the trucking industry is the consumer. Inefficiencies and bottle necks in transportation of ten lead to more cost burden which is often transferred to the consumer. With increased efficiency, products would be arriving more quickly, hence lowering the cost.
As more and more stakeholders in the whole trucking and logistics ecosystem continue adopting technology, more efficiency and cost reduction is expected, translating into more prosperity and profitability
Trucking, as an industry, has been a worthwhile career path for many years. It can be a hard arduous job, but drivers can typically make a decent living through hard work. Harbor trucking, which entails moving cargo short distances from ports to closely located warehouses and rail depots, has recently had a light shown on it which revealed unjust treatment of drivers who hold trucking jobs hauling these short-runs.
In the west coast ports of Los Angeles and Long Beach, which accounts for 37% of the cargo containers entering the US, harbor truck drivers have been working in deplorable conditions. An investigation by the USA TODAY Network has revealed a systematic and repetitive system in which drivers operating out of these ports find themselves deep in debt due to unfair labor and lease-to-own contracts. These contracts effectively force the drivers into a situation where they have to work long, tiring hours just to keep their head above water with no opportunity to reduce their debt or prosper as they should be.
To the average American, the predatory labor practices that these trucking companies are imposing on the drivers who haul cargo for them is extremely unfair and without cause. Those who have rallied to the side of the trucking companies have said that the California law on air pollution and the decision of business to ship by way of the east coast has resulted in a loss of business. They suggest that the horrible treatment of their drivers is necessary to increase the bottom line. Regardless of what they say, their actions are both cruel and unjustified as illustrated in how they responded to judgements against them for trucking jobs.
Truck drivers have gone before state labor agencies to try to recoup back wages and have won judgements against the trucking companies. The result of these victories have amounted to little, as the trucking companies have gone above and beyond to avoid paying the drivers that they have wronged. The techniques that they have implemented to avoid paying what they owe could be considered innovative if not for their inherit wrongness. One of their most used maneuvers involves shutting down the company and reopening under a different name. This has been highly frustrating for the drivers, because they have no leverage to force the trucking companies to do the right thing, Of the 37 million dollars that the drivers have been awarded in back pay, they have received only 3 million dollars of it. That’s less than 10 percent of what they are owed.
To save these trucking jobs, some legislative measures have been proposed to address the issue. One measure would put harbor trucking under the umbrella of fair labor laws. This measure would also seek to end the practice of abusive contracts which keep drivers in debt and perpetual servitude. The second measure allow cities to take their own actions to protect workers by removing the federal government from the equations. Though these measures are a step in the right direction, they won’t solve the problem completely. This is because, as they have shown in the past, the trucking companies have demonstrated that they are highly capable of avoiding and evading responsibility for their actions.
Basic demographics show that with increase of internet business orders coming in, the demand of deliveries to be made has increased almost a hundred fold in the decade alone. This means the number of truckers that used to suffice and sometimes override demand are insufficient at the moment. Orders that were supposed to take three days take a week and so on. Business growth is hampered, customer satisfaction limited and overall there is need for more products to be delivered. Simply put it means there are more truck driving jobs like never before.
Recent studies show and prove that the American economy largely depends on truckers. From cars, refrigerators, washing machines, ovens, cooker basically anything that has volume largely depends on truckers for transportation from one location to the next. However as it is now, more that 50,000 truck driving jobs are needed at the moment. The danger in this is that if and when it reaches the 100,000 mark the effect will lately be felt in the economy and will have a crippling. What is more, this number is expected to increase by ten fold in the decade hence the need to do something about it now.
What is being done
Well with increase in number of products to be delivered there is a increase in truck driving jobs vacancies that need filled. However with so many cons associated with the job like extended periods of time from family and low wages, millennials are staying away from the jobs in droves. This is also largely affected by fact that one has to want to travel and meet and see new faces and places every given period and not mind sleeping in a tin box most days when they are on the road. To ensure that they tap into this market and increase the number of truckers, companies are offering better pay and are largely considering working with a driver’s personal lifestyle to ensure that both the driver and company reach an amicable compromise. This means you get to work and have free time for family and the likes without the feeling that you have lost out.
What it means for you
The analysis of this will rarely make impact on most people apart from the fact that they will realize that their order will get delayed. Bottom line of all this is that companies still need to deliver what they promised when they promised for best service delivery. Needless to say this means great news for anyone considering truck driving jobs as a professional career as more and more truck driving jobs are available for the taking. Find trucking job on EveryTruckJob.com now.
With the current recovery of the freight market, trucking companies are now worried about how they can find enough truck drivers. The demand for shipping has experienced a two-year flop while manufacturing is going through a significant expansion. Retailers, on the other hand, are stocking up prior to the holiday season. While all these are happening, fleet companies are faced with the challenge of recruiting drivers who are qualified to address the high demand. Due to the circumstances, some companies have ended up increasing the wages before securing rate increases from freight shippers.
Most of the time, long-haul truck drivers move from one fleet to another in search of better working conditions, higher pay, and other benefits like schedules which allow them to spend more nights at their homes. Additionally, workers in this industry tend to be older than those that comprise the general workforce. This situation has fueled concern about the supply of these drivers as most of them edge closer to retirement while the younger generation joins other fields.
The issue is compounded by a tight employment market since the energy and construction industries rely on the same labor pool. On average, top trucking jobs pay about $55,000 annually, compared to the $80,000 earned by their counterparts who drive for the oil-and-gas industry. This is according to the chief economist of the American Trucking Association, Bob Costello.
An annual survey by the American Transportation Research Institute of 2017 indicates that for the first time since 2006, the shortage of drivers was the top concern in the trucking industry. According to the research group’s report, approximately 40% of respondents named driver supply as one of their top three concerns. The chief executive of Werner Enterprises, Derek Leathers, indicates that the industry has not experienced a market as tight in the last 25 years, and the situation is expected to worsen. The company has increased wages by approximately 15 percent in the past two years, as one of the steps of facilitating recruitment and retention of drivers. Additionally, the company has spruced up its terminals and equipment.
Carriers can benefit from the tightened capacity as it gives them a stronger grip with shippers on price and can also lead to passing up top trucking jobs if they can’t find enough drivers. Fleets experience significant expansion when business is booming. However, this time around, the condition may be off the table. Covenant Transportation Group’s chief financial officer, Richard Cribbs, indicates that there may be no reason to believe that the company may fail to grow its fleets given the small capacity of drivers. Based in Chattanooga, Tennessee, the company’s cost of employment in the third quarter increased by 4.8 percent from the previous year. However, revenue rapidly increased, and profit soared 59 percent to $4.6 million. The company expects an increase in shipping rates by 5 – 9 percent in 2018, yet its truck count will remain constant.
Most of the drivers scoff at the idea of a deficiency by suggesting higher pay as the solution. According to ATA, this shortage results into delays in deliveries with this year’s shortfall yet to peak. Freight companies may be required to hire approximately 898,000 new drivers in the next decade because more drivers are retiring and the company is continually expanding.
The positive market response to truckers’ demands for higher payments for freight services has been driven in part by two main forces. Starting with emergency contracts to haul aid cargo to hurricane-struck states, the retail industry comes a reliable second with orders for moving consumer merchandise from factories to depots and stores, in preparation for the upcoming holiday buying frenzy. As such, trucking companies have a reason to believe that profits figures will be higher for this quarter, as compared with last year’s earnings.
However, the increase of truck driver jobs salaries is projected to impact company balance sheets negatively. This is because the increased demand for company services has fueled a parallel demand to fill-in more truck driver jobs. The current situation has seen significant numbers of trucks going idle for weeks on end idle in yards, for lack of drivers rather than shipment. Consequently, a prevalent low driver workforce supply coupled with the aforesaid demands has seen driver wages going steeply uphill.
Going hand in hand with driver deficit problems are difficulties in enlisting drivers for company fleets. There are simply not enough people willing to take up driving as an occupation and those who are already practicing are a highly competed-for resource.
To avoid losing drivers to rival trucking companies, employers have introduced various workplace incentives to drivers. Besides phenomenal pay rises, these include giving one-time cash rewards to drivers joining the company from another, and advancing other continuing extras for the duration of employment. The effect of the high cost of truck driver jobs and driver scarcity, among other factors such as unfavorable weather, has been demonstrated in profit figures of large companies who have already submitted financial reports. In a bid to lower losses arising directly from lack of drivers and the related high cost of bringing in new staff, road freight companies seek the services of EveryTruckJob.com.
Here, the prospecting employer will find a ready reservoir of drivers for every one of their trucking needs at hand. On the other hand, people seeking truck driver jobs, upon application, stand to get connected to the best paying trucking companies. The deeply documented employer and driver details such as location, work hours and job zones favor both companies and job seekers.
The trucking industry incorporates many types and sizes of trucks. Staring with the iconic gas tankers to grain hauling trailer trucks, there are so many other varieties of trucks ranged in-between. Likewise, each truck drivers has their own preference for a certain kind of truck, though they can drive one as well as they can drive the other.
Moreover, some truckers will prefer long hauls to short repetitive jaunts as between a factory and a warehouse not too far away. The same goes about duty hours, where a segment of drivers will be more at ease cruising by night and resting by day. At of EveryTruckJob.com, drivers get exactly what they need, while employers save time and money, big money.
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