The COVID-19 pandemic highlighted significant challenges facing the US transportation and logistics sector. In 2022, shipping and trucking were presented with numerous obstacles (some new and others all too familiar), which, according to the experts, will likely remain as we head into 2023. 

Here are the top three challenges and how third-party logistics (3PL) and transportation businesses can overcome them.

Challenge 1. Driver Shortages

A massive driver shortage is one of the most significant problems carrier companies face. The industry has seen a rise in truckers’ resignations over the past few years, with high stress levels, lower wages, and safety concerns ranking as top contributing factors. Another issue is the rising average age of commercial truck drivers in America. Fewer young people are seeking to become fleet drivers, and eventually, as the current drivers retire, there will be an even larger hole in the available workforce.

How can driver shortages be resolved?

Driver retention is paramount to tackling the gap in the workforce. Taking on key issues such as wages and high stress and bringing drivers into the conversation is a step towards this. Driver safety on the roads is a crucial concern for many, and this must be addressed through improved training and equipment and by replacing outdated vehicles. 

A younger generation of potential employees will be more attracted to the work if there is a noticeable improvement in safety practices and drivers’ routes and schedules are optimized, so they spend less time on the road and more time with their families. Additionally, a study by the American Transportation Research Institute shows that  84% of young drivers rank company culture as a motivating factor for joining a carrier company, so fostering a positive company environment is critical.

Challenge 2. Rising Transportation Costs

War in Europe, the disruption in supply chains, and the rising fuel price have seen transportation costs soar in 2022. This increase has put pressure on logistics and transportation at every step as carriers and clients struggle with financial constraints.

How can growing costs be resolved?

Although little can be done to resolve the economic obstacles, freight transport and logistics managers can seek to alleviate the stress by optimizing their routes and consolidating their cargo. Strategize your routing guide to avoid costly mistakes. An error-free routing guide is vital to ensure smooth transportation without unnecessary costs.

Challenge 3. Maintaining Known Carriers

As contract rates react to the market, changing carriers becomes a reality.

How can this be resolved?

The recent increase in the frequency of procurement activities means that shippers and carriers have opportunities to re-strategize, reaffirm partnerships, negotiate rates and ensure they’re sticking to the budgets. Maintaining a strong relationship with a known incumbent carrier is vital as they will already be familiar with your business and operations. 

As a trusted 3PL company, ABCO Logistics and American Distribution help our clients manage every stage of the supply chain. Our expertise in storage and shipping for various businesses across the contiguous United States makes us the ideal partner to help you overcome new transportation challenges. Our clients don’t have to worry about their freight needs, as we handle every touchpoint, allowing them to expand their businesses and achieve their goals. 

Contact us today to learn how we can take your transportation requirements to the next level.