Major Challenges Facing the Transportation Industry in 2024

The road ahead for trucking companies is paved with both opportunity and obstacles. While demand for freight transportation remains high, factors like fuel costs, driver shortages, and complex regulations create significant challenges in the transportation industry — challenges that continue to evolve year over year. While the biggest challenges that trucking companies have faced in past years may look a little different, there are a few issues that remain and a number of new problems to consider.

Read on for a better look at the challenges that trucking companies may face in the future and how a Transportation Management System (TMS) may be able to help your company navigate these obstacles.

‍

What Are the Challenges Facing the Trucking Industry?

The trucking and freight industry is the driving force behind much of the economy and presents a wide range of challenges for trucking companies. Freight demands remain high — but trucking companies will have many obstacles to face in 2024. These challenges combine to create a challenging environment that demands innovative solutions to stay ahead of the curve.

Fuel Prices

Fluctuating fuel prices are a constant challenge faced by trucking companies. Every surge in gas prices eats into profit margins, making it difficult to predict costs and secure competitive bids. A Transportation Management System (TMS) with mileage and fuel integrations can help.  These systems analyze data and real-time fuel costs to optimize routes for fuel efficiency. By suggesting the most economical routes, tracking fuel consumption, and giving you greater insight into your truck and fleet fuel economy, a TMS enables companies to confidently manage the challenges posed by fluctuating fuel prices.

Driver Shortages

The economy continues to rely on the transportation industry and that demand is contrasted by an ongoing shortage of qualified drivers, creating a key challenge in the trucking industry. With fewer qualified drivers available, companies struggle to fill routes and meet delivery deadlines. This driver shortage can lead to delays, frustrated customers, and lost revenue opportunities. A quality Transportation Management System shouldn’t just relieve stress for your dispatch and operations teams — improved route planning, smooth driver payroll processes and improved communication can all lead to a happier, more dedicated driver fleet.

Increased Use of AI in Fleet Management

The increased use of Artificial Intelligence (AI) in fleet management might pose a challenge for trucking companies. Difficulties may lie in the push to transition to AI-powered systems, and the processes and costs to implement this technology effectively within operations. While the pressure to adopt stand-alone technology may be overwhelming, many Transportation Management Systems are already working to implement AI technology within their own software. This can save you the hassle of adding an additional system to your already full toolbox. These AI elements can help address day-to-day tasks like route planning and load optimization, potentially limiting the amount of time and effort your dispatch and driver teams need to put into a single route. AI, with its ability to analyze vast amounts of data, can help you identify previously unseen challenges and allow companies to be more proactive. This technology is still in its infancy and it’s likely that even more advancements will be available to trucking companies within the next year.

Demand for Digital Operations

The transportation industry's shift from analog to digital operations continues to present a challenge, especially for growing fleets looking to take on more business opportunities. Legacy systems and manual processes can make it difficult to keep pace with the growing demand for real-time data and streamlined workflows. Growing pains can be mitigated by adopting a TMS, which can act as a digital bridge between old processes and new digital frameworks. A TMS can integrate seamlessly with existing systems and automate day-to-day tasks. Technology continues to adapt to the marketplace and businesses using manual tools and processes will struggle to compete with companies that are able to take advantage of the operational efficiency and improved communications that can come from using a transportation management system.  

Adapting to a Global Supply Chain and Disruptions

A global supply chain presents a complex web of challenges for transportation companies. Many will remember the snowball effect that overwhelmed the supply chain during the height of the global pandemic. With local businesses at the mercy of a seemingly endless number of potential disruptors around the world, trucking companies are wise to do whatever they can to ensure they can weather any storm. A TMS can be useful in improving your visibility of the health of your business, from inefficiencies that may affect profit margins, to road blocks that may slow your drivers down at the border. While you can’t control disruptions higher up in the supply chain, you can make the most of your position and a TMS can help you navigate any uncertainties that may come.

Improved Digital Security

Cyber attacks are one of the most devastating things that can happen to a company, and unfortunately trucking is a prime target for malicious actors. The increased reliance on digital systems can bring big benefits, but it also creates a vulnerability. Digital security isn’t something that should be put off. The more you can invest in security now, the better protected your data will be. A TMS can provide additional security measures to protect your valuable data and ensure the smooth flow of your business operations. However, continue to stay vigilant and protect all levels of your business with good security practices and investments.

Real-Time Supply Chain Management

Keeping track of shipments in real-time across a vast network is a major challenge for the trucking industry. Customers today demand constant updates on their deliveries — but traditional operations may not provide the level of real-time feedback that customers require. Many potential customers are lost due to businesses not being able to keep up with the technological conditions in place. A TMS is a perfect solution for this problem, since it can integrate fully with many third-party tracking providers and even provide EDI visibility and functionality. This ability to provide real-time visibility on shipments and deliveries allows companies to optimize their own operations and build the trust (and repeat business) of their customers.

READ MORE: Top 5 Trends in the Trucking and Logistics Industry‍

Each year provides a different set of challenges for the trucking industry. From navigating volatile fuel costs and driver shortages to adapting to a global market and increased digital complexities, the obstacles are undeniable — but they are not insurmountable. With the first half of 2024 behind us, we hope we’ve provided some insight into what to expect for the remainder of the year.

Contact TransPlus today for a demo and see how this technology can empower your trucking company to overcome these challenges and drive future success!

‍