If you take a poll of many fleets, you will find them saying 2018 was their best year ever. But you must look closer into the numbers to find there is a difference between how larger and smaller carriers are doing. Not all motor carrier are created equal in the current environment. <\/p>\n\n\n\n
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How are Small- to\nMid-Size Fleets Doing?<\/strong><\/p>\n\n\n\n A new research\nsurvey<\/a> is shining a light on this very question. Whether it is a struggle\nto find qualified truck drivers, higher fuel and equipment costs, ELD\nimplementation, or other regulations, small trucking companies of 1 \u2013 100 trucks\nhave not done as well as those operating 100+ vehicles. <\/p>\n\n\n\n Nearly three-quarters of small trucking companies<\/a> surveyed reported that increasing costs \u2013 with insurance, maintenance, and fuel being the top three \u2013 were eating into profit margins. Even more, smaller fleets are reporting that unsustainable pricing being charged by larger competitors is squeezing them out of business. <\/p>\n\n\n\n Large motor carriers have been better able to manage the\ntruck driver shortage and capacity crunch that crippled the transportation\nsector in 2017. Large fleets have also made it through price increases that\nsmall- to mid-size carriers could not compete with. <\/p>\n\n\n\n As a result, smaller carriers feel that they can\u2019t negotiate\nprices, terms and conditions without risking losing a client. Nearly 40% of all\nsmall trucking companies surveyed stated they accept contracts as-is to avoid\nlosing that contract. This has hamstrung their ability to turn a profit in a\ntight marketplace. <\/p>\n\n\n\n Small trucking companies with fewer than 5 rigs listed their\nkey challenges as:<\/p>\n\n\n\n But for trucking companies with 5 \u2013 100 trucks, finding good\ntruck drivers was the number one concern with nearly two-thirds of the vote. Interestingly,\nretaining good truck drivers was third on the list. It becomes obvious that\nkeeping experienced, professional truck drivers in the cabs of 5 \u2013 100 trucks\nis far harder than finding truck drivers for just a few. <\/p>\n\n\n\n Another interesting finding highlighted nearly two-thirds of fleets with 5 \u2013 100 trucks giving pay raises to retain their truck drivers, compared with only a third of fleets with 5 or less trucks. No matter what truck grouping a company fell under, few had a firm grasp on what it costs them when they lose a truck driver, with 16% going so far as to say it did not cost them anything. The majority simply said they did not know. <\/p>\n\n\n\n [wp_ad_camp_2] <\/p>\n\n\n\n <\/p>\n\n\n\n Where technology is concerned, nearly half of all\nrespondents said the electronic logging device would have the biggest impact on\nthe trucking industry within the next three years. Rounding out the top three\nwere route optimization and predictive maintenance. <\/p>\n\n\n\n These answers also populated the top spots on what\ninvestments fleets anticipated making within the next 12 \u2013 24 months. The\nnumber one vote-getter was predictive maintenance, with route optimization and\nfleet management systems and software coming in second and third. The primary\nmotivating factor for adopting a lot of these new technologies stems from a desire\nto reduce costs. <\/p>\n\n\n\n Alaskan Trucking is\nDifferent<\/strong><\/p>\n\n\n\n If there is one place where moving freight around creates a\nnearly intractable logistical challenge, it is Alaska. Challenges posed by\ngeography and weather create nightmare load-hauling scenarios. At the same\ntime, almost everything Alaskans need or consume comes from somewhere else. Of\ncourse, you can get some of the best fish on the planet in Alaska, but everyday\nitems generally come from somewhere else. <\/p>\n\n\n\n With an ocean and Canada between them and the rest of the\ncountry, and only 2.4 miles between Russia and the United States, Alaskans face\nunique challenges. Truck drivers operating in Alaska also face unique\nchallenges. Imagine that it is a 44-hour, 2,260-mile ride from Seattle to\nAnchorage. By sea, that could take 3- to 4-days. <\/p>\n\n\n\n Barges regularly sail from the port of Seattle\/Tacoma and on\ninto Anchorage, otherwise, to get something there in a hurry, it must be flown\nin or go by steamship. Still, trucks are not a bad proposition. With a team of\ntruck drivers, they can generally make it from Seattle to Anchorage within two\ndays.<\/p>\n\n\n\n Consider, however, that that is just to Anchorage. Almost\nhalf the state\u2019s residents live there, and while it is not the state\u2019s capital,\nit certainly is its commercial hub. And it represents just a small part of a\nvery big state. <\/p>\n\n\n\n Alaska is actually nearly half the size of the entire United\nStates and is twice the size of Texas. From east to west, the sate spans 2,261\nmiles, which is nearly the east\/west span of the lower 48. Alaska also has more\nmiles of coastline than every other state, combined. With such a large size,\ngetting things from Anchorage to other parts of Alaska poses a unique\nchallenge. <\/p>\n\n\n\n While the summer months in Alaska provide barge service,\nusually from May to September, when winter arrives the water freezes over and\nbarge service stops. Fortunately, a decent highway network exists in the\neastern half of Alaska. Major centers like Anchorage, Valdez and Fairbanks are\nwell-connected to other areas in the state. There is also a freight rail\ncorridor that runs north-south between Anchorage and Fairbanks. <\/p>\n\n\n\n The extensive road and rail network only snakes across the\neastern part of the state. And trucks and trains can only go so far. To get\nthings farther, remote areas are only accessible by boat or plane. In fact, did\nyou know that there are more airports and landing strips in Alaska per capita\nthan any other state, by a wide margin? There are literally hundreds of small\ncommercial and charter services operating all over Alaska. <\/p>\n\n\n\n There are even situations where planes have had to fly\ntrucks! In those cases, tanks and the chassis must be broken apart, put on\nskids, then loaded on a C130 transport plane. Of course, this adds considerable\ncost to the vehicle, but in situations where remote municipalities need utility\ntrucks, this may be the only way to get the vehicles into those communities. <\/p>\n\n\n\n For Trucking Companies Working in Alaska<\/a><\/strong><\/p>\n\n\n\n Tractor size and weight regulations are fairly progressive\nin Alaska. While the state does not have a mandated gross vehicle weight, it\ndoes limit weight by axle groupings. A tandem axle group can run up to 38,000\npounds and a four-axle group can bear up to 50,000 pounds. Certain routes can\nalso accommodate long combination vehicles with a length up to 120 feet\ndepending on the time of year. <\/p>\n\n\n\n Trucks and trains play a big role during the warmer months,\nwhen goods are trucked north to Prudhoe Bay and then placed on the barges,\nprovided they are still sailing. Once a barge sails north, it usually stays up\nthere until the next thaw. If a product isn\u2019t into the dock by September 3rd<\/sup>,\nit will miss its chance until the following spring. <\/p>\n\n\n\n Transport costs are simply a fact of life in Alaska. By the\ntime one gallon of milk reaches a remote village in the north or west of the\nstate, it could skyrocket from $3.00 to over $10.00. The same goes for truck\nparts and other equipment. As such, you can likely imagine who the big player\nin Alaska is: Amazon Prime. Most of the small courier services that deliver\ngoods by plane count Amazon as one of the biggest parts of their business after\nferrying passengers to different places. <\/p>\n\n\n\n Still, everything from fuel to food is moved by truck\nwherever possible. Moving good by trucks, even from the United States, can\noften be far cheaper than going by boat or plane, especially if you are moving\nlarge goods. Yet, even though transportation services are in high demand in\nAlaska, trucking companies there are not without the same share of problems\nothers deal with in the lower 48.<\/p>\n\n\n\n There is a shortage of qualified CDL truck drivers the same\nas anywhere else. In fact, the problem is even more acute in Alaska, given to\nhow remote the state is. The unemployment rate is Alaska is also quite low.\nFrom jobs in the skilled trades, construction, pipeline work, and more, finding\ntruck drivers is no easy tasks. <\/p>\n\n\n\n Operating a big rig in Alaska also requires a certain skill set. Many roads are rural and windy. During the cold months, travel is especially precarious. Truck drivers running loads in Alaska must take great care to ensure they get their shipment where it is supposed to go safely and securely. <\/p>\n\n\n\n [wp_ad_camp_2] <\/p>\n\n\n\n <\/p>\n\n\n\n