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E-commerce effects on the Trucking Industry

With the supply chain disruptions of 2020 came a renewed focus on e-commerce and its impact on the trucking industry. Businesses of all sectors are being forced to change their operations as a result of the pandemic’s impact on an increasingly digital world.

The driver shortage has caused major challenges for the trucking industry, causing employers to do everything they can to attract more applicants, including raising driver annual compensation.

Just recently, Walmart began offering jobs for truck drivers paying more than the average yearly pay. To meet the huge demand for truck drivers, Walmart offers $110,00 for new drivers and even more for tenured individuals.

According to Walmart’s tweet on April 7, this action is a form of investment in their drivers. They will also conduct a training program for individuals who wanted to join their fleet.

Pay Increase: the only solution?

“As e-commerce creates additional demand for warehousing jobs and short-haul freight, long-haul trucking positions may become harder to fill,” according to the Transportation Department report in February.

American Trucking Association (ATA) also estimated that the trucking industry requires an additional 80,000 drivers.

One of the solutions to address this critical driver shortage is to pay truck drivers more. According to some experts, this could be a solid strategy for both recruiting new drivers and retaining current ones.

While pay increase may not be enough to solve the driver shortage, it’s a start.

A recent report by DAT Solutions also found that the number of available trucks fell to a record low in May 2020, as the pandemic caused many truck drivers to either get sick or stay home. The shortage has caused freight rates to skyrocket, as shippers are willing to pay more to get their products delivered.

It’s not just the retail sector that’s booming – e-commerce sales have also been on the increasing for years. This indicates that the demand for goods to be carried from point A to point B has increased.

E-commerce is one of the key reasons why the trucking business is so important to the economy. Businesses would be unable to operate without trucks, and customers would be unable to obtain the goods they need.

E-commerce has had a significant impact on the transportation business, and it is predicted to continue to increase in the coming years. Stay updated with the latest news in the trucking industry here.

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