I’ve been asked a lot lately if this is really the best time to get started in the trucking industry, so let me explain.
Supply and demand in the trucking industry are driving factors, just as they are in any other product or service sector. When demand is high, cost/price goes up, and when demand is lower, cost/price goes down. This is the main reason why I believe one of the most favorable opportunities to become a freight broker or freight agent will open up in the next 3-5 years.
There are currently three main reasons explaining the increase in demand, and the value provided by freight brokers will only increase in the coming years.
1) Government regulation and legislation that raises costs and makes it more difficult for small freight companies to compete has and will likely contribute to the disappearance of small, low-capitalization carriers from the industry. For more information, visit the CSA 2022 website. 2) The cost of diesel is constantly rising and I’m not sure the oil producers won’t let it drop anytime soon… if it happens at all! Like any new phenomenon, there are consequences, and higher diesel prices can not only put small carriers out of business due to lack of cash, but often force carriers to abandon trucks in parking lots…which only adds to the capacity shortage. For more information on diesel prices, visit the U.S. Department of Energy’s website
3) The trucking industry suffers greatly from a shortage of truck drivers. According to official statistics, there is currently a shortage of at least 80,000 truck drivers in the United States. And, unfortunately, that number continues to grow. The thing is that young drivers are not motivated to get into the industry when older drivers are already getting retired. There are less CDL drivers within years. Also, training for the younger generation is more difficult nowadays than it was even a few years ago. But this is not the only problem. Drivers burn out because the job is stressful and comes with big personal sacrifices – such as long periods of time away from family. Covid has had a big impact on people’s willingness to retire. Right now the average age of a truck driver in the U.S. is 49
Finally, driver shortages have already created and will continue to increase capacity shortages, and as capacity decreases, freight rates increase and, more importantly for brokers, the number of shippers who trust brokers to transport their freight increases.
So, as the saying goes, “timing is everything,” leading indicators suggest that the need for freight brokers will only increase, so take the time, my friends, or let this opportunity pass you by.