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Kuebix Young Truckers Shipping Ecommerce Transportation

Training the Next Generation of Truck Drivers to Combat Increasing Customer Demand

As e-commerce becomes more popular amongst the growing population, the trucking industry faces an increase in shipping demands. Matching the pace of online orders has proven to be easier said than done as the number of online orders begins to outweigh the number of trucks and drivers available to deliver. Drivers on the road are struggling to transport the ever-growing mountain of freight to satisfy consumers’demand for fast shipping. As a result, transportation costs have risen and many businesses have increased the prices of their products to compensate. New truck drivers are needed now more than ever to close this gap and regain control over truck and product pricing.

Why Is There a Need for More Truck Drivers?

Taking on the role of a truck driver is a serious commitment as it requires extended periods of time away from home and meals often consisting largely of fast food. Over-the-road drivers typically work four to six weeks straight, which is an incredible sacrifice for those looking to spend time with friends and family or simply relax. Truckers are often paid based on the miles they have driven instead of the hours they have actually worked. This leaves time spent sitting at various docks while freight is loaded and unloaded unrecognized and unpaid.

What Actions are Being Taken to Recruit New Truck Drivers?

Fleets and carriers are testing a few solutions to combat the issue of readying the next generation of truck drivers. Many companies are covering the cost to get licensed, offering a sign-on bonus to new drivers and some even providing an annual salary of about $73,000. Some carriers are also planning on decreasing the number of routes drivers can take to allow them more time at home, hoping this change will encourage more new drivers to the industry. However, this poses a problem for truck drivers who are paid based on miles driven rather than hours worked. Carrier companies are considering changing their payment methods to reflect hours worked rather than miles driven to lessen the impact of the change. Additionally, some trucking companies are using apprenticeships as their main method of recruitment since these programs give young drivers an opportunity for a more immersive training experience.

What Effect Is This Having on the Economy?

With shipment orders increasing in extraordinary fashion, and an inadequate number of drivers available to fulfill these new order streams, shipping costs are on the rise. In order to compensate for this, companies have resorted to raising their prices. In 2018, Amazon, General Mills, Tyson Foods and John Deere all announced they would be following this trend. Inflation has the potential to rise by 1% as both shippers and suppliers try to deal with the rapid increase of e-commerce ordering. 

Motivating the next generation to pursue careers within the trucking industry is extremely important to keep up with ever-growing e-commerce shipping demands. Beyond creating an incentive for young adults to pursue a career in trucking, these positive changes will also motivate those who are already hard at work to keep on driving.

Kuebix FleetMAX

A Win-Win for Fleet Owners and Shippers

Right now in the industry there are approximately 10 orders to ship for every available truck. Conversely, there’s a large portion of private fleets that are running their assets with a significant amount of empty backhaul miles. At Kuebix, we don’t think it makes sense for there to be a capacity crisis at the same time as so many trucks are running empty. That’s why we decided to do something about it.

FleetMAX is designed to help fleet owners eliminate empty miles and generate additional profit by making backhaul fleet capacity available to Kuebix’s vast community of shippers and brokers without the legwork fleet managers typically need to do to source backhaul freight for their assets. The program also eliminates the risk generally associated with contracting out with unknown shippers and streamlines the financial management. Instead of managing countless agreements with shippers and brokers, fleets manage a single agreement with Estes Truckload Management LLC.

This unique relationship with Estes Truckload Management LLC eliminates a major obstacle in the success of filling fleet backhauls by making the administration of charging the shipper and collecting the funds easy. With FleetMAX, all of the financials and settlements are managed through Estes Truckload Management, relieving private fleets of these administrative challenges. For brokers and shippers, FleetMAX offers untapped fleet capacity delivered through technology at attractive prices via a single provider, Estes Truckload Management, one of the most trusted names in the industry.

With FleetMAX, Kuebix’s technology digitally matches fleet capacity with freight to obtain consistent and repetitive external backhauls to offset empty miles, add revenue to fleet operations, and provide shippers/brokers a new source of trusted capacity. Now that’s a win-win for all parties.

Learn More about FleetMAX

 

 

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