Hot 2023 Owner-Operator Trends
Now that up-and-down 2022 has turned the corner and promising 2023 has made its first steps down the sidewalk, the people related to the logistics industry look out for what could raise their profits and benefit their businesses. Owner-operators, who form the backbone of today’s transportation sector, are anticipating the pleasurable blow of the wind of changes and advantageous implementations.
What are the upcoming trends of the year that just appeared from around the corner?
Fuel Price Decline
Based on the information obtained from Tom Kloza, head of energy analysis at Oil Price Information Service, it’s predicted that, in 2023, diesel prices will fall after reaching their peak in late 2022. Among the key factors expected to impact a decline in fuel prices, are global economic conditions, demand for oil and gas, and some federal regulations and taxes. Some experts also believe that factors such as weather geopolitics will also affect prices for gas.
Ocean Freight Volume Fall
As a result of slow-downs in consumer and business spending, global freight volumes started to fall. The growth in freight and manufacturing, which have gotten much slower, is predicted to eliminate the pressure on supply chains and markets of commodities. Thus, inflation will become less severe and conspicuous. The slowdown situation is an indispensable element in economic rebalancing needed after the extreme growth in merchandise trade that occurred in 2020 and 2021.
Freight Rates Fluctuation
One of the contributors to inflation during the COVID-19 pandemic was elevated costs for logistics services. However, in 2022 spring of 2022, the situation turned around, and ocean freight prices were lowered. The volumes of containers imported to the USA have fallen since November 2022, with the subsequent congestion challenge being largely eradicated.
Increased Security – Orders Are Booked Online
Thanks to the growth of the e-commerce industry and colossal technological advancement, many orders are placed online. It has served as one of the beneficial factors for drivers – online orders come with advanced security and subsequently; thus create safer working conditions for drivers.
Truck Driver Shortage
The exponential problem of truck driver shortage has been around for quite a long time already, stemming from a variety of factors. Authorities and trucking businesses are pulling all the strings to do away with the challenges that prompt the plummeting of the trucking occupation. However, the problem still needs a more accurate and varied approach to fade away for good. Given today’s unfavorable development course of the driver’s occupation, experts predict that the problem is going to get even more challenging and debilitating to businesses.
Increased Pay due to Shortage
The growing lack of interest in the truck driver’s occupation has inspired transportation companies to take serious measures to invite people to take the job. A pay increase has been one of the most impactful and efficient tools that trucking businesses utilize on their way to handling the problem. That said, in 2023, truck drivers are expected to receive decent wages with the prospects of having their payments increased throughout the same year if the shortage problem remains afloat.