WESTMINSTER, Colo. — Trimble recently announced the release of “The Road Ahead: Key Trends and Capabilities Shaping the North American Freight Transportation Market,” a Transporeon report that identifies the key developments that impact the future of the North American truckload transportation sector.
- Market Challenges: The current state of North America’s truckload sector — low demand and ample capacity — has created challenges for carriers. The report highlights the complexity of demand sources contributing to a decline in trucking load requests and discusses the necessary capabilities to compete in the rapidly evolving truckload market.
- Nearshoring: Driven by the combination of global geopolitical volatility and sustainable emissions goals, the continuing growth of nearshoring is identified as a key trend for truckload-related businesses. As Mexico surpasses China as the leading source of goods imported into the U.S., 88% of small to medium-sized supply chain businesses plan to migrate partially to suppliers closer to the U.S., while 45% plan to switch all of them (Capterra). The report examines how these changes may affect the truckload transportation market.
- Freight Fraud: Freight fraud is a growing risk in the truckload sector, with CargoNet reporting a 59% increase in cargo theft in Q3 2023 compared to Q3 2022. An April 2024 survey found that 48% of respondents experienced cargo theft or freight fraud in the past year. Shippers, carriers and logistics service providers (LSPs) are advised to consider and prevent freight fraud. The report outlines steps to reduce its likelihood.
- Sustainability and Electric Vehicles: New emissions standards for heavy-duty trucks at both state and federal levels are accelerating the switch to more emissions-friendly vehicles, with forensic carbon accounting and measurement a potential legal necessity for shippers and carriers. Hurdles such as mileage range and charging infrastructure are among the limitations preventing fleets from greater adoption of electric vehicles.
- The Implications of California’s AB5: Driver shortage is an ongoing challenge for carriers and LSPs, adding to the cost burden of enterprises as they bid to retain experienced and valuable driver support. Costs have the potential to rise further following the enactment of AB5 in California, which mandates reclassifying many independent contractor drivers as employees, requiring trucking companies to pay additional benefits and payroll taxes. The possibility of similar legislation spreading to other states could further exacerbate these challenges.
Born and raised in Little Rock, AR, Erica N. Guy decided to stay in her hometown to begin her professional career in journalism. Since obtaining her bachelor’s degree from UAPB, Erica has professionally written for several publications about several topics ranging from lifestyle, tech, culture, and entertainment, just to name a few. Continuing her love for her hometown, she joined our team in June 2023, where she is currently a staff writer. Her career goals include continuing storytelling through her writing by being the best professional writer she can be. In her spare time, Erica enjoys trying new foods, cozying up with a good book, spending time with family and friends, and establishing herself as a future businesswoman.
