Trucking owner-operators facing new challenges in 2023

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Trucking fleets will likely be facing a litany of issues over the course of the year, as an aging workforce begins to take their leave and the owner-operator model faces sweeping federal regulations. The owner-operator model in the trucking industry has been fighting against the California AB5 law for several years, which redefined the independent contractor definition. Additionally, there is a growing problem of filling slots in a fleet with younger recruits as the driver shortage persists.

Why are these trucking labor issues disruptive?

Labor issues in the trucking industry can be disruptive to the supply chain because trucking is the primary mode of transportation for the vast majority of goods in the United States and many other countries. When trucking companies face labor issues, such as strikes, slowdowns, or labor disputes, it can create significant disruptions in the movement of goods, leading to delays and increased costs for businesses across the supply chain.

Some common labor issues in the trucking industry include disputes over pay and benefits, working conditions, and job security. These disputes can result in work slowdowns, strikes, or even complete shutdowns of trucking operations, which can have a major impact on the supply chain. For example, a strike by truck drivers could lead to a shortage of trucks and drivers, resulting in delays in the delivery of goods and causing backups at shipping ports and warehouses.

Additionally, labor issues in the trucking industry can also create uncertainty for businesses across the supply chain, as they may struggle to accurately forecast delivery times and plan for the movement of goods. This can have a negative impact on their bottom line, as they may be forced to spend more on expedited shipping or incur additional costs due to supply chain disruptions.

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