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)
  • @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.
  • @Ashitaka255
    notice how no actual drivers were interviewed. Only owners and managers.
  • @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.
  • @cagedtigersteve
    As a former trucker I think we don't get paid enough....so I quit.
  • @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.
  • @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.
  • 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
  • @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!
  • @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!
  • 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.
  • @TxJacob713
    The only "shortage" there is in the trucking industry is a pay shortage for safe, good, dependable drivers.
  • 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.
  • @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.
  • @SoulSearch11110
    Trucker here, better pay, better treatment! Respect us! 🚛
  • @LK-bz9sk
    Big rig drivers are some of the most unappreciated people in our society. They bring us everything. Everything.
  • @LightTim
    I used to truck myself. The issue really is, and one the video barely touches, is i wasn't getting what they promised. If I went back out, I know I wouldn't see that 50k at swift for example, because when I did work for swift, I was suffering so much loading times I was working the 14 hours a day, but getting paid 8-10 hours. If trucking goes per hour like most sane countries, I'll go back to trucking, but for now the ACTUAL pay scale of trucking is so insulting I'm not trucking. Enjoy that shortage of drivers industry. You earned it.
  • @HighwayLand
    been driving for 4 years for A&M Transport and I drive the 5 western states. As of right now I am averaging 2,910 miles a week with take-home pay of $1,079.60 a week. I now have 3 houses with renters living in two of them and those renters pay off the mortgage on all 3 of them. I love what I do, and I am grateful to be here. Just wanted to add something nice to this story.
  • When driving a truck for a living the last thing on your mind is the scenic wonders that surround you as you pass by, the first thing you notice, is how many idiots you have to dodge all around you!