US trucking industry is always balancing between the good and the bad, the challenges and new achievements. And while the first indications showed us that 2020 might be a challenging year for both truck drivers and the US trucking industry, it is always important to remain positive and optimistic. And it seems that towards the end of the first month of the year this is the trend that’s happening. Let’s welcome the positivity boost for the US trucking industry and truck drivers in 4 easy steps! Table of contents: California’s Controversial Truck Drivers Law Halted Spring Freight Volumes Rates to Increase? Shippers Express Positivity Optimism is Now Priority in the US Trucking Industry
Step 1: California’s Controversial Truck Drivers Law Halted
We simply have to start with California’s AB5 law and how truck drivers achieved major victory recently. The controversial law received heavy criticism due to its threats to more than 70,000 truckers by reclassifying them as employees of minimum wage rather than self-employed independent contractors.
The law received an opposition from California Trucking Association which filled out a federal lawsuit in its efforts to stop the law.
And on January 16, a federal judge halted the procedure of the law indefinitely until further notice which could extend for months or even years while the battle for AB5 will continue in court.
Step 2: Spring Freight Volumes Rates to Increase?
According to various reports, the US manufacturing sector as a whole has been struggling for some time which affects shippers and motor carriers. But recent Federal Reserve Data shows us a 0.2% increase in output by US manufacturers.
This is one of the first signs of recovery, and no one else should be happier than shippers, carriers and the US trucking industry as a whole.
More shipping means more selling for shippers which results in higher trucking rates and benefits for truck drivers. The hope for upside this year and growth in US commerce is real.
Step 3: Shippers Express Positivity
The survey which was conducted in the last quarter of 2019 has been seen to show optimism among shippers for the future.
The most optimistic ones were LTL (less-than-truckload) respondents with an expectancy of expansion and growth due to e-commerce sales.
When it comes to trucking, it was a more modest vote and actually indicated that many are expecting volume growth to slow down. However, the intermodal competitiveness improvement is expected to increase, and more than 50% of voters expect truckload growth moving towards the future in the US trucking industry.
Step 4: Optimism is Now Priority in the US Trucking Industry
Hundreds of executives and professionals from the US trucking industry and transportation sector came together to discuss a variety of topics and challenges like truck parking, driver retention, contract rates and much more.
The tone throughout the conference was always positive, and it always highlighted what needs to be done for improvement and how to step up the game in various areas within the industry. Let’s see what 2020 has in store for all of us!