Why The Trucking Industry Is So Fragmented And Chaotic

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Published 2021-10-31
Trucking is an especially fragmented industry, which makes it susceptible to continuous boom and bust cycles. While the pandemic wreaked havoc on several industries, trucking is no exception: the industry as a whole is experiencing a shortage of drivers, high turnover rates, and order delays, among a slew of other problems. With 40% of the global economy dependent on freight and logistics, the industry's issues resonate across supply chains and through other dependent industries.

Trucking is an $800 billion dollar industry that has proven too tough for one company to dominate.

Low barriers to entry make it easy for aspirants to start companies, and competition is fierce. There are thousands of trucking companies in the United States, and the fragmentation of the market produces huge boom-and-bust cycles.

Some companies have tried to consolidate or roll up smaller operations, but the industry is resistant to it.

New technological developments, such as self-driving trucks, could spur consolidation by removing one factor that keeps the industry so competitive: drivers. That will not be easy — companies are still perfecting the technology, and the regulatory landscape would need to be changed to accommodate these vehicles.

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Why The Trucking Industry Is So Fragmented And Chaotic

All Comments (21)
  • @Ashitaka255
    notice how no actual drivers were interviewed. Only owners and managers.
  • @baburo101
    I'm a 'trucker' and let me tell you that it's not accurate to believe that the industry is struggling. There are ample drivers available, but greedy companies/brokers don't want to pay accordingly.
  • @dariusrucker9642
    The trucking industry held me for 4 months. I figured out quick that it's not worth working in an industry in need of such massive reform. "Debt peonage" couldn't be more accurate. "Indentured servitude" would be a good term for it as well. You would not believe how many of these companies try to get brand new drivers to lease trucks just to be indebted to the company. It's a predatory system that robs the workers of their livelihoods. Many of these people have little to no education and don't see it coming until they're underwater and out of options and that’s why I had to make research about governmental grants and hired a licensed professional grant writer who helped me in securing a grant and I could start up a real deal for myself.
  • @MrJodyh54
    I want to see an automated/autonomous truck stop and chain-up.
  • There is no trucking shortage it's a pay shortage. Nobody wants to be on the road for weeks at a time for 65,000 a year. You got to pay us better if you want us to work
  • @cagedtigersteve
    As a former trucker I think we don't get paid enough....so I quit.
  • @kikito707
    It's amazing how they didn't bother to interview any drivers. Apparently they're not smart enough to contribute to this investigation. As always big media and big CEOs are the only ones to hold the solutions for us peasants. Basically the problem is us the drivers. Take us out of the equation and problem solved. It's that easy.
  • @oby-1607
    I was a truck driver in British Columbia and had zero accidents and zero chargeable offences ( example: speeding, parking etc.) and never was late for an appointment. The company I worked for had their favorites and they got all the miles and dedicated runs. Myself was lucky to get a 500 mile run and one day was hauled in by management and was told to work 7 days a week instead of 6 because they were losing money otherwise. The surprising attitude of the owner was he was treating me like he had just caught me stealing his wallet. Showed the respect they had for their drivers. I was a lease operator which means I owned my own truck, paid all truck maintenance expenses, paid all insurances required, paid for my own meals and truck depreciation. They only found the loads and have their own company trucks which gets priority over owner-operators. The safety supervisor begged me to stay as he knew my record. I quit. They are still in business and still ripping off owner-operators who work for them. I truly feel sorry for the guys trapped there because of monetary reasons( truck payments, etc.). Still can't figure out how they were losing money from my actions. I sure was from theirs.
  • @717xcrunner
    Bad training. Low pay. Tough conditions. No parking. Bad management. I’d like to see driverless trucks deal with the conditions drivers can. No driver shortage. Greed.
  • @TxJacob713
    The only "shortage" there is in the trucking industry is a pay shortage for safe, good, dependable drivers.
  • I love how they lump all driving jobs into long-haul over-the-road. There’s all kinds of jobs each with their own hurdles and challenges. Not just anybody can get onto a pier and pick up a container. Not everybody has tanker or hazmat endorsements. Plus there’s tons of local jobs with very different lifestyles than over the road guys.
  • @kenburkard
    As an Independent Owner Operator out here for the past 20+ years I can assure you that there is NO DRIVER SHORTAGE/ it’s always issues with utilization and “corrupt to their core” Brokers who get ZERO over-sight from our government!
  • @MrFriday83
    Oh joy I love working 70 hours, not being paid for my time, being away from my family and peeing in bottles at shoppers because they don't allow us to use their bathroom. Sign me up!
  • @tonylam9548
    The video made the typical mistakes , that $50,000 a year sounds reasonable, ($25 an hour) until you discovered in trucking , you do not divide it by 40 hours like everyone else do, you work more like 60-75 hours a week. At the end, she try to BS us you can see beautiful America, yeah, at 60 mph and you cannot stop. Your work hour are limited, and while you are working many jobs, you can go for a quick coffee or wash room, or just day dream a few minutes. Even pilots do not have to fly their planes much. Try that in a truck,sight seeing as she said, within 10 seconds, you see this lamp post coming at you.
  • @lashlarue7924
    I drove for 3 years from 2011 - 2014. They were the longest, saddest years of my life. I'm happy I'm not doing it anymore, but I'll never get over the pain of losing all my friends and watching my relationships wither away and die. People love to kick you when you're down. Worst job on the planet, bar none.
  • @SoulSearch1111
    Trucker here, better pay, better treatment! Respect us! 🚛
  • To any trucker reading these comments, thanks for your service, not an easy job, I've certainly got a new appreciation for what you people do.
  • @LK-bz9sk
    Big rig drivers are some of the most unappreciated people in our society. They bring us everything. Everything.
  • @bobbywilliams21
    I was a truck driver for over 20 years before I actually took the opportunity of applying for a business Grant which I use to start my own trucking company. These are the few tips i will tell all truck drivers and for those who are interested. 1) Protect your license. Companies will ask you to break the law. Almost force you to. Don't do it. Don't get greedy and speed to make more money. Your license is more important than kissing your companies butt or making a few extra bucks. 2) Try and stay local. You may have to work crappy jobs for a year or so, but if you still have a good driving record and you are a good worker you can move on to a really good job easily. 3) Get an hourly paying job. It's just better. I got to a point where I would never work for anything other than hourly. 4) Get a job that pays overtime. Anyone that tells you that you'll just pay more in taxes don't know how taxes work. Companies will tell employees that most of your overtime will go to taxes to trick dumb employees into working for less. Not a penny more is taxed because it's overtime 5) Always keep your ears open for a better job. Be a good/hard worker but as for loyalty, be loyal to you and your family. 6) Something I always say out loud on a daily basis... safety first. Live your life on the motto of safety first. It should be tattooed on the inside of your eyelids. 7) The number one rule I always advice is that you always keep your ear open for better opportunities. I was able to start my own company because I stayed inform with the available offers around me. If you are also thinking of starting your own Trucking company, I will advise you look into grants.
  • @Cristina199
    What's not discussed is the war between drivers and the fleet owners. Fleet owners are wanting robot trucks and drivers are replacing fleet owners/brokers with apps. A CDL holder and with a truck and apps to get loads is winning so now the banks are making it hard for financing and the fleet owners lobby to end independent contractor.