Challenge in the trucking industry
Literature review
Introduction
Before trucking into existence, the road companies were the only existing in the movement of good both locally and internationally. In 1800 ICC was established by the federal government to control the rail industry. And in the 1920s and 1930s, the trucking industry was becoming accessible means of transporting goods and freight both locally and internationally. But the trucking industry failed to have a vision. They were frequent fights between the railroad industry and the trucking industry to an extent the shippers took over. As conflicts continue, ICC stepped in to regulate the working hours for a truck driver, the regulations were severe, but they maintained order in the industry. In 1935, the Motor Carrier Act, new rules were set to clean up the mess in the trucking industry (Holtzman, n.d). The act aimed to control growth in the trucking industry.
History of the trucking industry
International machinery was agricultural machinery that dominated the united states market. International harvester business was a gigantic global enterprise at that time. In the 1800s it became a producer as well. Trucking had remained a portion of the transport industry since the late 1800s when Karl Benz brought the first internal combustion engine. Earlier to this date, the trucks were moved by steam engines. Before 1990 the truck advancement was brought by the change to an internal combustion engine, most consignments elated over land was transported by trains using railroads. Trains were used to transport vast quantities. But they could not distribute to the urban centre, so they needed to use horse-drawn transport. The few trucks that were in existence were usually novelties, accommodated for their marketing space instead of their value. A company by the name Winton Motor Carriage were the first to construct the first trailer truck (Holtzman, n.d). He made a tractor from a car and smaller trailer that pulled cars from their factory in 1899.
In 1909, Fruehauf tried with tractor-trailers. The usage of electric engines that were range-limited, small load capacities and inadequate paved rural roads limited trucks to short-haul urban routes. In 1910, progress in technology led to the rise of the modern shipping industry. With the invention of gasoline enhanced internal combustion engines, transmissions advancement, the getting off-chain drives to gear drives and tractor combination development transporting using trucks gained popularity. 1913 the first weight restrictions for trucks were put in operation. The low weight was 8,200kg in Main to a maximum of 13,0000 in Massachusetts. The laws were enacted to shield the gravel-surfaced roads and earth from destruction instigated by the solid rubber and iron wheels of pre-trucks. As in 1941, the growth went up to 100,000 trucks on roads of America. Due to poor roads, the speed of the trucks remained limited at 15miles per hour. During the first world war, the rising of trucks development and was spurred. Due to the congestion of roads during these times of wars, there was a need to look for alternative means of cargo transport. During this time Roy commenced trial with the first long-distance automobile shipments, and magnified tires proficient of supportive more massive roads were established that made it possible for drivers at higher speeds. Mackand White emerged.
After years from 1920 brought a lot of advancement such as diesel engine introduction that was more reliable than gasoline and roads become better. In 1933 there was a need for industries to face fair competition as was requested by Franklin D. Roosevelts. Same year FTA and AHFA of America talked of starting an organization, and they commenced on code search. By summer the code was ready for approval. The code was approved in 1934. The first head of ATA turned out to be the first one to sign the code. Congress passed the 1935 Motor Carrier Act which replaces ICC and permitted ICC to control the trucking industry. 1937 the Congress established the driving schedule hours of bus drivers and truck. 1941 the ICC stated there are weight limitations levied by the states that are challenging to the reliable interstate truck industry. The same year a committee was selected to sightsee the idea of state inter-regional road system. But there was no progress on the idea as world-war II interrupted it. The great interstate way started in1956 that gave a unified network of skilful access throughways that permitted larger trucks to move at higher paces and speeds via urban and rural road. The weight limitation was the setup for trucks, 33,240kk. Malcolm Mclen started containerized intermodal trucking that permitting more affordable mode of transport between ships, trains and trucks. The late 1950s, the AASHTO carried out several extensive tests of bridges and roads to determine the way traffic led to pavement material deterioration. After the tests completed, AASHTO authorized that the trucks weight limitation be done by bridge formulation table based as a substitute of static upper limitation. And in 1970 over 18million trucks were in Americans’ roads. In 21st century the number of trucks has significantly increase in Americas’ road, and they are about 26million trucks. The trucks today present 70% of the total volume of freight.
Challenge in the trucking industry
According to Melorie, trucking faces an increase in insurance costs. The insurance for trucks is becoming a big knock out for the industry. The surge is making the truck owner quit truck commerce. Also, there have been delays in compensation of the trucks involved in accidents becoming a challenge for business owners to continue being in the industry. This has become an enormous concern for the industry. The cost of fuel is a big problem for the industry. Since 2005 fuel cost for these trucks remains ranked high. Trucking industry could not withstand the extraordinary surge in diesel fuel prices (Congressional record index: Proceedings and Debates of the … Congress, 1962). Another challenge is the economic crisis (the United States. Congress. Senate. Committee on Commerce; Science; and Transportation, 1979). The industry experience increases in slumps demand increased fixed and marginal vital cost centre and increased regulation as economy pressure hit the US economy.
The rate and time length that the driver is held at customer facilities have increased over the years—any detail for the truck industry results to an excessive. The change of hours-of-service change is a challenge to the trucking industry. According to ATRI, hours of service of the third 2018 issue in eight consecutive years. According to FMCSA was required for truck drivers to use the paper recording for the duties; otherwise, they were not able to use Electronic Logging Devices. The companies that they did not use these devices they were required first to pay for these tools imposing a significant challenge to the industry. The splitting of the working schedule became a problem for them. Smaller companies are finding it hard for them to keep abiding with the continually changing rules and regulations governing the trucking industry. Closing up of small carriers’ shop is a threat to trucking commerce. Such companies that have closed include Terril Transportation Inc; this company had 26 truck drivers, 30 trucks and 12 owner-operators. A midsized firm HVH transportation- had 324 drivers and 344 truck units. Another carrier that has closed its business is Georgia-based ready trucking-had 91 drivers and 108 trucks units.
The industry is facing a shortage of driver. The inadequate keeping of truck drivers is worrying about the company. The American Trucking Association is experiencing a shortage of driver numbering approximate 30,000 to 35,000 drivers (the United States. Congress. Senate. Committee on Appropriations. Subcommittee on Transportation and Housing and Urban Development; and Related Agencies, 2008). The expected drivers to quit the industry is expected to reach 245,00 by the end of 2022. This is due to lower pay to long haul trucking job. The drivers usually demand a favourable pay from the federal government for even for the time they spend being away from their local area. The federal regulation that a truck driver should be 21 years and this make the young generation to look for other jobs. The damaged roads and bridges in united states are putting the trucking industry at an end. Due to the condition of the roads, the truck industry gets discouraged with the business as long hours are spent on roads. The distance determines trucking jobs the delay put a cost to the company. The damage roads and bridges cause damage to the trucks. The report by Infrastructure department 21% of roads were in an inferior condition. They are resulting in an approximate f $121 billion for each year for repairment and operating costs for the trucks.