Trucking services play a critical role in the U.S. supply chain. Trucks are used over both short and long distances, and trucking is often considered the “first and last mile” of the supply chain, moving raw inputs to manufacturers and finished goods to consumers. Trucking services also offer an affordable shipping alternative for small and medium sized enterprises whose shipment sizes do not warrant entire rail cars or containers, or for smaller firms that cannot afford more expensive modes of transportation like air freight.
The U.S. trucking industry primarily operates domestically within the United States, as well as across North America. Trucking demand is driven by consumer spending and manufacturing production. According to the American Trucking Associations (ATA), in 2022, trucks moved roughly 72.6% of U.S. freight by weight. Trucks transported 66.5% of the value of surface trade between the United States and Canada and 84.5% of the value of surface trade between the United States and Mexico, in 2023.
SCS is tracking a number of key issues that impact U.S. trucking services, including cross-border trade issues, truck driver shortages, and truck driver parking shortages.
Cross-Border Trade
Cross-border freight movement between and among the United States, Canada, and Mexico is crucial to our nation’s economy and prosperity. Increased trade can strain North American freight rail and trucking infrastructure among these partners, making continued cooperation and communication among all three countries vital.
Intermittent closures of certain U.S. border crossings over the last few years have led to delays and disruptions of freight traffic, mostly between the United States and Mexico. For instance, the Texas Department of Public Safety has periodically imposed additional inspections on commercial trucks crossing the southern border from Mexico in an effort to stop illegal drugs and migrants from being smuggled into Texas.
Trucking companies that move freight across the United States’ borders with Canada and Mexico face unique operational issues. Not only must they comply with U.S. regulatory requirements, but they must also be familiar and in compliance with the transportation, customs, immigration, and other requirements in Canada and Mexico.
Truck Driver Shortage
According to ATA, a serious truck driver shortage exists in the United States and is likely to get worse in the coming years. In 2021, ATA estimated the shortage at about 80,000 drivers, and noted that the shortage could surpass 160,000 in 2030. The driver shortage is also a contributor to overall rising U.S. logistics costs.
ATA attributes the driver shortage to several primary factors. First is the high average age of current drivers, and the fact that younger workers are not entering the trucking industry at a rate high enough to replace the aging driver workforce. Other factors include the inability of would-be and current drivers to pass a drug test, as well as difficult hours that require drivers to be away from home for extended periods of time.
Truck Driver Parking Shortage
Truck parking shortages are a national safety concern impacting the trucking industry. Commercial truck drivers need access to safe, secure, and accessible truck parking. According to the Federal Highway Administration, with the projected growth of truck traffic, the demand for truck parking will continue to outpace the supply of public and private parking facilities and will only exacerbate the truck parking problems experienced in many regions.
An inadequate supply of truck parking spaces can result in negative consequences. Tired truck drivers may continue to drive because they have difficulty finding a place to park for rest. Truck drivers may choose to park at unsafe locations, such as on the shoulder of the road, exit ramps, or vacant lots if they are unable to locate other appropriate parking.
