Trucking Industry Outlook 2020: What to Look For

Trucking Industry Outlook 2020: What to Look For
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As the year comes to a close, it is only natural to look forward to the future. The trucking trends of 2019 are coming to an end. It’ll be a new year, new you, and some new trucking trends which you can expect to see in 2020. These trends have to do with not only logistics but also technology. So, without further ado, here is your trucking industry outlook 2020 edition!

trucking industry outlook 2020

Trucking Industry Outlook 2020: LOGISTICS

Going into 2020, there are several different logistical conditions that the trucking industry could see. These include the following: (1) the end of the AOBRDs, (2) a decreasing demand for freight transportation, and (3) a cruise to success in 2020.

The End of AOBRDs

In regards to regulatory dealings, the pending phase-out of AOBRDs (automatic onboard recording devices) to the ELDs (electronic logging devices) could prevent hundreds of drivers from working if they do not make the switch on time. The exception for using the older AOBRDs ends in December. At that point, all fleets still using AOBRDs will be required to switch to the new technology. The deadline for this switch is December 16, 2019, but don’t wait until the deadline because the switch can take up to a few months to implement.

A Decreasing Demand for Freight Transportation

Reported by DCVelocity.com, Senior Market Analyst DAT Peggy Dorf stated that, “demand for freight transportation will probably not stay as high as the historically tight freight capacity and high shipping rates of 2018 since many fleets have already responded to that shortage by investing in additional trucks and by raising salaries for drivers.” The increase in salaries, as well as trucks, is sure to lower the demand for transportation by a little.

This is also impacted by a few uncontrollable variables. These variables include extreme weather events, such as floods and hurricanes. Other than weather, politics and new policies can also affect the demand for freight transportation. So, make sure to keep a lookout for any new policies after the elections.

Cruising to Continued Success

Despite the first two logistical outlooks, Dorf suspects that the “U.S. freight market is likely to dodge the potholes and cruise to continued success in 2020,” according to DCVelocity.com. She believes that the trucking industry outlook 2020 will still be a positive one due to help from healthy economic conditions both on the consumer and industrial level. In the end, don’t fret, 2020 seems to be looking up for the trucking industry.

Trucking Industry Outlook 2020: TECHNOLOGY

Besides logistics, there are also two technological trends that will be making an impact in the new year! These include the uber-ization of freight and telematics.

Uber-ization of Freight

According to IAMagazine.com, Jack Roberts, senior editor of Heavy Duty Trucking Magazine, states that, “the same technology behind Uber can be applied to freight shipping to connect shippers with small trucking companies online.” This system would and will allow customers to find and hire available drivers within a specified radius. Uber-izing the trucking industry will also boost productivity and save time and money for the truck drivers.

Telematics

In short, telematics data is collected by a device installed in the truck. This device will collect, store, and transmit different types of information relating to the performance, condition, and usage of the freight vehicle. According to FastCompany.com, IBM predicts that telematics could do a lot for the trucking industry. From slowing down the truck when it approaches a blind curve to catching vehicle issues, telematics could help to reduce the number of trucking accidents. Looks like 2020 could be one of the safest trucking years yet!

Where Does the Trucking Industry Outlook 2020 Leave You?

Knowing what the trucking industry outlook is for 2020 can help you stay ahead of the curve and not be taken off guard. Though there may be other changes, updates, or setbacks coming in the new year, these are the most important ones to know moving forward. Keeping these in mind, you can confidently go into the year!

Do you have any predictions for the trucking industry in 2020? Let us know in the comments below…

Author: Hit The Road Jack

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