2020 was a turbulent year for nearly every industry – and the trucking industry was no exception.
Now, as more Americans are getting vaccinated, restrictions on businesses are reopening, and a third round of stimulus payments are making their way out, hopes are high that the nation may finally return to some semblance of economic normalcy.
And industry and commerce rely on trucking for supplies and goods, there is a lot of speculation as to what this will mean for the industry.
Here are our predictions for the trucking trends we can expect to see in the duration of the year.
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1. Increases in Pricing
One of the worrying trends in the trucking industry was the low cost of shipping.
This trend was already present in 2019, so it isn’t entirely the pandemic’s fault. That said, it certainly didn’t help, with carriers being forced to lower prices to subsistence levels out of fear of not being able to get work at all.
The current hope, however, is that an economic rebound will cause a boom in demand for shipping. If this comes to pass, it should correlate to higher prices and better wages for truckers.
2. Expect Freight to Become a Hot Commodity
In the immediate term, the demand for freight will remain mostly consistent. Basic inventory replenishment will keep retailer’s demand for shipping at its current levels, but it’s still too early to expect a major boom.
The economy is still slow to recover, owing largely to the slow roll-out of a vaccination program. However, the expectation is that the economy will start to make a comeback in the second half of the year.
Once life begins to return to normal, the expectation is that the resulting boon to the economy will reinvigorate demand for both standard shipping and hot shot carriers.
3. Higher Costs Related to Rising Fuel Prices
One downside of the economic recovery is that fuel costs are expected to rise. In fact, we’re starting to see this in action already.
At the height of the pandemic, the cost of fuel plummeted as Americans weren’t traveling and commerce and industry ground to a halt. As the country gets back on its feet then, you can expect fuel costs to rise along with it.
4. More Carrier Mergers
One consequence of the pandemic that can’t be overlooked is the number of carriers who were forced to close their doors last year. With few goods being moved the demand for shipping simply wasn’t there, leading to shuttered companies and thousand of truckers losing their jobs.
Many of those carriers who were able to stave off bankruptcy have done so by merging and using their shared resources to weather the storm. As economic recovery was sluggish in the first quarter and will likely remain so in the second, we can expect the number of new mergers to remain consistent.
The Future of the Trucking Industry
While market instability makes reliable forecasts difficult, hopes are high that the economy is beginning to normalize. As the economy runs on the trucking industry, that should mean good news for America’s truckers.
That said, we remain in uncharted waters. So in the weeks and months to come, be sure to stay tuned to Newshunt360 for all the news you need to stay ahead of the curve.
