Trucking industry in the United States: History, Trends, and Future

The trucking industry in the United States has a rich history dating back to the early 20th century. The first trucks were introduced in the 1910s, revolutionizing the way goods were transported across the country.

The industry grew rapidly in the post-World War II era, with the number of trucks on the road increasing from 1.5 million to over 10 million between 1945 and 1975. This growth was driven by the rise of suburbanization and the growth of the US economy.

The trucking industry has undergone significant changes in recent years, with the introduction of new technologies such as electronic logging devices and autonomous trucks. These innovations aim to improve safety, efficiency, and environmental sustainability in the industry.

The trucking industry in the United States has a rich history that spans over a century. Before World War I, most freight was moved by train or horse-drawn vehicle, but trucks were first used extensively by the military during the war.

The 1930s saw a significant growth in the trucking industry as construction of paved roads increased. Public safety concerns led to government regulations, such as the 1965 hours of service rule, which was later revised in 2012.

The Interstate Highway System, built with taxpayer funds in 1956, revolutionized the trucking industry by providing a vast network of highways and freeways that linked major cities across the continent. This allowed the industry to grow substantially in the late 1950s and early 1960s.

For more insights, see: Trucking Industry News Canada

The trucking industry has a rich history that's fascinating to explore. Before the invention of automobiles, most freight was moved by train or horse-drawn vehicle.

The military first used trucks extensively during World War I. With the increase in construction of paved roads, trucking began to gain a significant foothold in the 1930s.

Public safety concerns led to the implementation of government regulations, such as the 1965 hours of service rule, later revised with a compliance date of July 1, 2012. This regulation aimed to limit how long drivers could work and drive each day/week.

In 1956, taxpayers provided funds to build the Interstate Highway System, a network of highways and freeways that linked major cities across the continent. This massive infrastructure project enabled the trucking industry to grow substantially in the late 1950s and early 1960s.

Trucking became a national sensation during the 1960s and 70s, with songs and movies about truck driving becoming major hits.

You might enjoy: B Pallets

The trucking industry has undergone significant changes since the 1990s. Trucks are now commonly equipped with satellite communication features.

One of the most notable advancements is the rise of automatic transmissions. They're gaining in popularity and making life easier for truck drivers.

Truck stops have also become more modern, with WiFi Internet access now a standard feature.

Intriguing read: United States Postal Service Truck Driver

The trucking industry in the United States has a significant environmental impact, particularly when it comes to air pollution. Diesel exhaust emissions are a major contributor to this problem, with components confirmed as animal carcinogens in 1988 and considered likely to be carcinogenic to humans by 2002.

Diesel exhaust has been linked to lung cancer, chronic bronchitis, and aggravated asthma, among other health effects. It's also a greenhouse gas, which contributes to climate change.

The good news is that alternatives and improvements to standard diesel fuel have been developed, such as biodiesel, which is non-toxic and biodegradable. Biodiesel promises a reduction in some exhaust emissions and reduced dependence on foreign petroleum supplies.

The EPA has also implemented regulations to reduce emissions, including the production of ultra-low sulfur diesel (ULSD) fuel, which has 97% less sulfur than previous low sulfur diesel fuel. This reduction in sulfur will prevent an estimated 8,300 premature deaths and 5,500 cases of chronic bronchitis each year.

Exhaust emissions are a major concern when it comes to diesel fuel, and it's not just about the environment - it's also about human health.

Components of diesel exhaust were confirmed as an animal carcinogen in 1988 by the National Institute for Occupational Safety and Health, and by 2002, the U.S. Environmental Protection Agency (EPA) considered it "likely to be carcinogenic to humans".

Particulate matter of diesel exhaust has been linked to lung cancer, chronic bronchitis, and aggravated asthma.

The good news is that alternatives to standard diesel fuel have been developed, such as biodiesel, which is a non-toxic, biodegradable form of diesel fuel made from vegetable oil.

Biodiesel promises a reduction in some exhaust emissions, as well as reduced dependence on foreign petroleum supplies.

The U.S. Environmental Protection Agency (EPA) has also taken steps to reduce exhaust emissions, requiring petroleum refiners to produce ultra-low sulfur diesel (ULSD) fuel starting in June 2006.

ULSD has 97% less sulfur than the previous low sulfur diesel fuel, and when combined with new air pollution control technologies, will reduce harmful emissions by 90%.

By the time the action is fully implemented, the EPA estimates that 2.6 million tons of smog-causing nitrogen oxide emissions will be eliminated each year.

This is a significant reduction, and it's also estimated that 8,300 premature deaths, 5,500 cases of chronic bronchitis, and 17,600 cases of acute bronchitis in children will be prevented every year.

Engine idling is another major contributor to exhaust emissions, and it's estimated that unnecessary idling can be remedied with shore power or Truck Stop Electrification.

Explore further: What Trucking Companies Will Pay for Cdl Training in Florida

Trucks consume a massive amount of fuel, with 54 billion gallons consumed for business purposes as of 2015. This includes 39 billion gallons of diesel fuel and 16 billion gallons of gasoline.

Combination vehicles, powered nearly exclusively by diesel fuel, accounted for 75 percent of this diesel fuel consumption.

The trucking industry in the United States has seen significant improvements in technology and operations. Digital technologies have enhanced efficiency, safety, and overall logistics management.

Trucking companies can now track their vehicles in real-time using GPS-based systems, providing real-time data on vehicle locations and helping to optimize routes and predict delivery times. This technology has become widespread, with over 1,000 all-electric trucks deployed in the United States as of February 2022.

The Internet of Things (IoT) and cloud computing have also become increasingly important in the trucking industry, enabling advanced data analytics and helping companies make informed decisions based on large datasets. This has led to the development of telematics technology, which collects and transmits data from the vehicle, such as speed, engine performance, and fuel usage.

Digital freight matching platforms, which leverage machine learning technology, have also become popular, analyzing all possible load-to-carrier combinations to come up with an optimal result. These platforms provide tailored recommendations to shippers/brokers and carriers, helping to improve efficiency and reduce costs.

Intriguing read: Best Home Time Trucking Companies

Fuel efficiency is a top priority for many trucking companies, and for good reason - with fuel prices on the rise, it's essential to find ways to save. One way to do this is by using a hydraulic hybrid vehicle, which stores energy in hydraulic tanks and motors.

Electric hybrid vehicles are another option, offering savings of 35% to 60% over traditional vehicles. This is a significant reduction in fuel costs, and it's no wonder many companies are making the switch.

Drivers can also play a role in improving fuel efficiency by using a technique called progressive shifting. This involves shifting through gears in a way that optimizes the power range of the engine, which can lead to better fuel economy.

Pure electric trucks are becoming increasingly popular, with over 1,000 deployed in the US as of February 2022. These trucks run solely on electric power, producing zero emissions and reducing reliance on fossil fuels.

The braking system in these electric trucks is designed to capture energy that would otherwise be lost as heat, and put it back into the battery. This is done by using the motor as a generator, which is a clever way to maximize efficiency.

Explore further: Electric Apu for Semi Trucks

The trucking industry has undergone significant transformations with the adoption of digital technologies. GPS tracking provides real-time data on vehicle locations, helping to optimize routes and predict delivery times.

The Internet of Things (IoT) and cloud computing have enabled the widespread use of IoT devices in trucks, monitoring cargo condition, vehicle health, and environmental parameters. This provides insights for better fleet and cargo management.

Telematics technology collects and transmits data from the vehicle, such as speed, engine performance, and fuel usage, for preventive maintenance and improving driver behavior. Electronic Logging Devices (ELDs) record a driver's driving hours and duty status, ensuring compliance with regulations and reducing the risk of accidents due to fatigue.

Advanced driver assistance systems (ADAS) include features like lane departure warnings, collision avoidance systems, and adaptive cruise control, enhancing road safety by assisting drivers in navigating and responding to road conditions.

Broaden your view: Small Cargo Airplane

In the trucking industry, operations can be segmented in various ways. One way is by load size, which includes full truckload (FTL), less than truckload (LTL), and courier operations.

Consider reading: Pallets per Truckload

Full truckload operations involve a single shipment that occupies the entire space of a trailer. This type of operation is often used for large, heavy, or bulky items.

Less than truckload operations, on the other hand, involve consolidated loads from several shippers. This type of operation is often more cost-effective for smaller shipments.

Couriers specialize in transporting parcels or packages, often using smaller vehicles and prioritizing speed and efficiency.

Trucks also carry different types of freight, which can be grouped into three main categories: general cargo, bulk dry cargo, and bulk liquid cargo.

General cargo includes individual items, packages, containers, and other goods that are not packaged together. This type of cargo is often found in retail stores and warehouses.

Bulk dry cargo, by contrast, consists of loose, unpackaged loads of dry goods such as grain or coal.

Bulk liquid cargo, meanwhile, involves loose, unpackaged liquid cargo such as oil or liquified gas.

In terms of commodity, trucks move a wide range of goods, including dry goods, temperature-sensitive cargo, construction materials, oversized/heavy loads, hazardous materials, livestock, and automobiles.

Consider reading: Top Heavy Haul Trucking Companies

Dry goods, for example, include packaged foods, clothing, and electronics. Temperature-sensitive cargo, on the other hand, requires special handling to maintain a consistent temperature.

Construction materials, such as lumber, cement, and steel, are also commonly hauled by trucks.

Distance of operation is another way to segment the trucking industry, with three main categories: local trucking, regional trucking, and long-haul trucking.

Local trucking typically involves routes within a city, while regional trucking involves routes within one or several states.

Long-haul trucking, meanwhile, involves cross-country routes that require extended periods of time on the road.

Finally, different truck and trailer modifications exist to carry different cargo. In the US, the most common truck type is the semi-truck, which can pull different types of trailers such as dry vans, reefers, flatbeds, step decks, and tankers.

Here's a quick overview of the different truck types and their uses:

Hours of Service is a set of rules designed to protect the general motoring public by reducing accidents caused by driver fatigue.

The FMCSA defines a CMV, which is a single or combination vehicle with a gross weight of 10,001 pounds or more, as a vehicle that is subject to these rules.

The first version of Hours of Service was enacted in 1938, and four revisions have been made since, with the most recent revisions relying on research into the human circadian rhythm.

As of July 1, 2013, a driver operating under federal property carrying regulations is limited to 11 hours of actual driving within a 14-hour period, and requires a 30-minute break during the first 8 hours of on-duty time.

Drivers must also rest for 10 hours after a 14-hour period, but the rules do not explicitly require that a driver must sleep, only that a driver must take a period of "rest" within the sleeper berth or off-duty.

A truck driver's log book is a legally defined form containing a grid outlining the 24-hour day into 15-minute increments, where drivers must specify where and when stops occur, what duties were performed, and other information.

In lieu of a log book, a motor carrier may substitute an electronic on-board recorder to record the driver's hours.

A new Electronic Logging Device Mandate will come into full force on December 16, 2019, requiring drivers to utilize specifically designed electronic logging equipment that records driving time based on a direct communication link with a vehicle's engine.

Worth a look: Trucking Companies in Canada Hiring Foreign Drivers

Weight, size, and route restrictions are crucial factors to consider in the trucking industry. The FMCSA regulates the length, width, and weight limits of CMVs for interstate commercial traffic.

Interstate commercial traffic is generally limited to a network of interstate freeways, U.S. highways, and state highways known as the National Network (NN). State limits come into effect for intrastate commercial traffic, provided the vehicle is not on the NN.

There is no federal height limit, but states may set their own limits, ranging from 13 feet 6 inches (4.11 m) to 14 feet (4.3 m). Truck drivers are responsible for checking bridge height clearances before passing underneath an overpass or entering a tunnel.

Truck drivers are also responsible for checking their own vehicle's weight, usually by paying to be weighed at a truck stop scale. The federal gross weight limit for a Class 8 truck is 80,000 pounds (36,000 kg), with axle weights limited to 12,000 pounds (5,400 kg) and 34,000 pounds (15,000 kg).

Suggestion: Semi Truck Transportation

The relationship between axle weight and spacing, known as the Federal Bridge Gross Weight Formula, is designed to protect bridges. Truck weights and sizes are checked by state authorities at a weigh station or port-of-entry.

Here's a quick rundown of the federal weight limits for a Class 8 truck:

Fuel costs are expected to increase in 2024, with crude oil prices projected to reach an average of $96 per barrel.

The rising cost of crude oil will likely have a ripple effect on fuel prices, making it more expensive to operate trucks for business purposes. As of 2015, 54 billion gallons of fuel were consumed by trucks for business purposes, with 39 billion gallons of that being diesel fuel.

The good news is that retail prices for gasoline and diesel are expected to decrease in 2024, with gasoline prices projected to drop from $3.32 to $3.09 per gallon. Diesel prices will likely follow a similar trajectory, falling from $4.23 to $3.70 per gallon.

If this caught your attention, see: Last Mile Delivery Business Model

The equipment shortage is still a pressing issue in the industry. Companies are still feeling the effects of the COVID-19 pandemic, which created a semi-truck shortage in 2023.

The pandemic's impact on labor shortages worldwide, including in the U.S., put pressure on manufacturing rates, leading to fewer new trucks being available on the market.

Global supply chain congestion added to the pressure, making it even harder for companies to get the equipment they need. The semi-truck shortage is expected to slowly begin to overcome in 2024 as the pandemic's impacts even out.

Recommended read: Transportation by Truck

The trucking industry in the United States is dominated by a few large carriers, with the top four carriers controlling over 40% of the market.

The industry is highly competitive, with over 700,000 trucks operating on the nation's roads.

The largest carriers are typically unionized, with many drivers belonging to the International Brotherhood of Teamsters.

The remaining 60% of the market is comprised of smaller, non-asset-based carriers and owner-operator fleets.

The top US trucking firms are dominated by owner-operators, with over 90% of companies in the long-distance freight trucking industry being owner-operators as of May 2015.

J.B. Hunt Transport Services holds an estimated 2.5% market share of the total market.

The top 10 trucking companies by revenue in 2015 are a mix of public and private companies, with UPS Freight being the largest with $29,829 million in revenue.

Here are the top 10 trucking companies by revenue in 2015:

FedEx Freight and UPS Freight are the only two companies on the list that provide parcel services.

Additional reading: Sea Freight Forwarding Market

Many businesses operate their own fleets, with 71 percent of shippers doing so, according to research by Coyote and Check Market.

Companies like Walmart, PepsiCo, and US Foods have some of the biggest private fleets in the US.

A private fleet is owned by the shipper, giving them more reliable service, greater visibility and control over transportation, and cost-effectiveness.

Consider reading: Shipyards in the United States

Private fleets are not the same as dedicated fleets, which are operated by external logistics companies.

Companies with private fleets often outsource some of their supply chain operations, with 75 percent of respondents outsourcing at least some of their supply chain operations.

Using a combined approach of both in-house and third-party carriers is a common strategy for many businesses.

For-hire carriers are companies that own or lease vehicles and provide cargo transportation services for a fee. They are the backbone of the trucking industry, serving various industries such as Transportation & Public Utilities, Wholesale & Retail Trade, and Manufacturing.

The US trucking industry is very fragmented, with no leading carrier controlling the market. This is due to low entrance barriers, allowing new companies to easily start the trucking business and compete for their share of the market.

For-hire carriers can be divided into two groups: trucking companies and owner-operators. Trucking companies typically operate on a larger scale, owning multiple trucks and employing numerous drivers.

For another approach, see: Trucking Companies That Hire without Experience

Some of the major players in the market include FedEx Freight, J.B. Hunt, Schneider National, and XPO Logistics, which have operated for decades and own thousands of vehicles.

The top ten FTL carriers account for around 5 percent of total market revenue, with the rest being smaller companies and owner-operators.

Here are the industries served by for-hire carriers, listed in order of market share:

Freight brokers play a crucial role in the trucking industry, facilitating the transportation of goods between shippers and carriers.

They negotiate rates, ensure stable communication, supervise delivery, settle financial transactions, and help with paperwork, making them an indispensable part of the logistics process.

According to Gartner, 20 percent of all freight transportation in the US goes through brokers, highlighting their significant contribution to the industry.

Some of the biggest brokerage companies in the US include C.H. Robinson, TQL (Total Quality Logistics), XPO Logistics, and Coyote Logistics, which have extensive market expertise and established connections.

These companies match shippers with the most suitable carriers to move their cargo efficiently and cost-effectively, often focusing solely on brokerage operations or offering a wide range of logistics services.

Curious to learn more? Check out: Logistics Automation Market

The trucking industry in the United States is heavily regulated to ensure safe and efficient operations.

The Federal Motor Carrier Safety Administration (FMCSA) regulates nearly all aspects of the trucking industry, setting rules for truck drivers, roads, and highways.

Truck drivers are limited by the number of daily and weekly hours they may drive, with a lower legal definition of drunkenness than non-CMV drivers.

The Federal Highway Administration has established a blood alcohol concentration (BAC) level of 0.04 percent as the threshold for driving under the influence of alcohol for CMV drivers.

Some states have special speed limits for trucks and restrictions on driving in certain lanes, such as the far right lanes of multi-lane highways.

Truck drivers are subject to stricter regulations than non-CMV drivers, with a lower BAC level for driving under the influence.

Here are the main federal and state agencies that regulate trucking in the United States:

These agencies work together to ensure the safe and efficient operation of the industry, with a focus on security, environmental regulations, and the overall transportation infrastructure.

The trucking industry is heavily reliant on truck drivers, who transport goods across the country and keep businesses stocked. Truck drivers play a vital role in the American economy.

The trucking industry is facing a major challenge in finding qualified drivers, with the American Trucking Association estimating a shortage of 160,000 drivers by 2030. This is due in part to the demanding nature of the job, which involves long hours on the road, heavy traffic, and bad weather.

Truck drivers are classified as employees under California's Assembly Bill 5, which states that anyone providing labor or services in exchange for payment should be considered an employee rather than an independent contractor. This means that truck drivers are entitled to certain benefits and protections under labor laws.

The industry is also grappling with a driver shortage due to an aging workforce and a lack of new hires. In 2006, the U.S. trucking industry employed 1.8 million drivers, but a large percentage of these drivers are expected to retire soon.

Here are some key statistics on the trucking industry's labor challenges:

To become a commercial truck driver, you need a commercial driver's license (CDL), which requires a skills test and a knowledge test covering unique handling qualities of driving an 18-wheeler.

Acquiring a CDL can be expensive, with some CDL schools costing thousands of dollars.

Truck drivers are required to have a CDL to operate a large, heavily loaded vehicle, such as a CMV carrying more than 16 passengers or weighing over 26,000 pounds.

The CDL test covers topics like air brakes and vehicle inspection procedures, which are crucial for safe and efficient truck driving.

Many trucking companies have formal relationships with CDL schools, with 86% of truckload carriers having a relationship with a noncarrier CDL school and 88% having a relationship with a private, for-profit CDL school.

Consider reading: Ups Package Delivery Driver Starting Pay

Truck drivers play a vital role in the American economy, transporting goods across the country and keeping businesses stocked with the supplies they need to operate. They often contend with long hours on the road, heavy traffic, and bad weather, but their hard work is essential to the country's economy.

Check this out: Fedex Ground Economy Usps

The trucking industry has a rich history in the United States, dating back to the early days of the country. In the eighteenth century, truckers were known as "teamsters", and they transported goods using teams of horses or oxen.

The American Trucking Association (ATA) claims that the trucking industry may be short 160,000 drivers by 2030 unless action is taken. This has led to driver pay increasing as companies seek to attract and retain drivers.

Truck drivers spend up to 11 hours per day driving, and up to 14 hours per day in driving, fueling, paperwork, vehicle inspections, and repairs. Long-haul drivers often spend weeks away from home, sleeping at truck stops or rest areas.

Driver turnover in long-haul trucking is notorious for being high, with the largest carriers experiencing a record 136% turnover rate in the 4th quarter of 2005. This results in a "revolving door" within most long-haul trucking companies.

The trucking industry is divided into two segments: "for-hire" carriers and "private" carriers. For-hire carriers make up 51% of the carriers operating in the U.S., while private carriers make up 44%.

Here are some examples of companies that hire truck drivers:

The trucking industry is facing many challenges, including a driver shortage, maintenance and upkeep, infrastructure challenges, and adapting to technological changes. These challenges require strategic planning, wise investment in new technologies, and a focus on sustainability and efficiency.

The trucking industry in the United States is a massive sector, with a market size estimated at $532.7 billion in 2022.

Trucking accounts for 72.6 percent of the nation's overland freight movement, with 11.46 billion tons of freight moved annually. This is a staggering number, and it's no wonder the industry plays such a vital role in the US economy.

The trucking industry contributes $389.3 billion to the US GDP, which is 1.64 percent of the country's total GDP. This is a significant economic impact, and it's clear why the industry is so important to the US economy.

As of April 2023, there were 750,000 active motor carriers in the US, each owning or leasing at least one tractor. This number is likely to continue growing as the demand for trucking services increases.

The industry employs approximately 8.4 million people, with 3.54 million of them being truck drivers. Women comprise 8.1 percent of the drivers, which is a notable trend in the industry.

See what others are reading: Custom Clearance and Freight Forwarding Course

The trucking industry plays a vital role in the US economy, contributing $389.3 billion (1.64 percent) to the GDP.

Trucking is responsible for 72.6 percent of the nation's overland freight movement, moving 11.46 billion tons of freight annually.

The sector's gross freight revenue was $940.8 billion in 2022, a staggering figure that highlights the industry's importance.

There are 750,000 active motor carriers in the US, each owning or leasing at least one tractor.

Trucking employs approximately 8.4 million people, with 3.54 million of them being truck drivers.

Women comprise 8.1 percent of the drivers, a figure that's slowly increasing.

The number of commercial trucks registered in the US is 36 million, with 3.7 million being Class 8 vehicles.

These trucks consume over 50 billion gallons of fuel while traveling almost 300 billion miles on North America's highways.

Their owners pay over $43 billion in highway-user taxes each year, a significant contribution to the economy.

A unique perspective: Trucking Companies Looking for Drivers

Rising insurance premiums can be a significant burden for transport companies, particularly smaller fleets. Insurance premiums rose by 47% from 2009 to 2018.

For more insights, see: Tractor Trailer Insurance

This sharp increase is largely due to higher litigation payouts for accidents involving transport vehicles. The American Transport Research Institute (ATRI) report highlights this trend.

As a result, transport companies face financial uncertainty, making it challenging to operate and maintain their fleets. Insurance premiums are now a major expense for many transport companies.

Rising litigation costs are a significant contributor to the increase in insurance premiums. Medical treatment and litigation fees are also driving up costs.

Discover more: Transport Pallets

The trucking industry in the United States is a dynamic sector with several trends shaping its future. Fleet electrification is a growing trend, driven by environmental concerns and the push for sustainable transport solutions.

Electric vehicle sales volume is increasing rapidly, with over 313,000 electric cars sold in the US in Q3 2023, a 50% increase compared to the previous year.

Autonomous trucking is another significant trend, with advancements in autonomous driving technology poised to revolutionize the industry. Companies like TuSimple, Waymo, Volvo, and Tesla are heavily investing in developing camera-equipped self-driving trucks.

The trucking industry is also exploring blockchain technology to enhance supply chain visibility, security, and efficiency. Additionally, the growth of eCommerce is leading to increased demand for last-mile delivery freight services, emphasizing the need for more efficient logistics management.

The industry is facing several challenges, but it's also expected to grow significantly in the next few years, driven by the economy's improvement and increased demand for goods and services. This growth will be fueled by new technologies that make trucks more efficient and safer, reducing costs and improving productivity.

Here are some of the key trends and challenges facing the trucking industry: