With the final quarter of 2019 underway, fleets are taking stock of their business’ health, honing in on trends, and preparing for the coming year. While not every fleet’s experience will be the same, the following are some of the most prevalent developments trucking companies are anticipating for the final months of 2019:
- Business picking up steam. The summer doldrums stretched many fleets thin over the third quarter, but things are picking back up as they head into the last few months of the year. With the holidays rapidly approaching, there is a higher demand for cargo deliveries and shipments of goods from consumers and vendors alike.
- Rising insurance rates. Even as business improves, several factors are affecting fleets’ cash flow and the cost of insurance is one of them. Fleets of all sizes and niches are reporting similar difficulties with burgeoning rates as they struggle to make up for a slow summer. Making improvements to safety metrics can help combat this particular struggle.
- Ongoing driver shortage. Many within the industry are grumbling about the driver shortage, claiming the problem is high turnover more so than the inability to fill seats. With fierce competition, it’s hard to engender loyalty in new employees that have their own financial health to consider. With numerous other cash flow burdens, many fleets are struggling to offer salaries and benefits that can entice drivers to stay.
- Rate wars. Many customers are forcing fleets to compete and offer lowball rates while they’re contending with increasing insurance costs, a slow third quarter, and trying to improve driver retention. Many blame a successful 2018 for the ongoing rate pressure well into 2019.
With regulatory changes on the horizon including adjusting hours of service (HOS) rules, split sleeper berths, and the long-anticipated Drug and Alcohol Clearinghouse, fleets have more to contend with than ever. DriverCheck understands the challenges fleets are facing as the industry undergoes a significant transformation. Contact us today to learn how we can help your trucking company.