Supply Chain Efficiency
Load Optimization Cuts Costs

Our AutoO2 load optimization software cuts transportation costs by maximum legal and damage-free loading every shipment and decreasing the number of trucks needed. While transportation is the most significant part of the total supply chain costs, the industry has several critical issues: a labor and equipment shortage and diesel costs.

The most significant part of truck transportation costs is labor. So, let’s see what happens with truck drivers’ availability. In 2022, the truck driver shortage is improving a bit. According to the American Trucking Associations, in 2022, the deficit lowered from its historical highest record of 81,258 (2021) to 78,000 unfilled driver jobs.

So, only the USA has the lack of drivers been approx. 80,000 for years. The American Trucking Associations say that by 2031 the industry must recruit nearly 1.2 million drivers. And the clear indication is that labor costs will need to rise to fill these positions.

Few government programs exist to improve the situation. One exception is allowing truck drivers to be trained in high school and start immediately.

Congress approved the Department of Transportation’s Safe Driver Apprenticeship Pilot Program in 2021 as part of the bipartisan infrastructure law. The program seeks to enroll several thousand 18-21-year-old apprentices over three years. The goal is to help provide some of the 1.2 million truck drivers needed over the next ten years. Recall:

    • The average age of truck drivers is 46 — so a number on the north side of that will retire.
    • Currently, you must be 21 to drive a truck unless you are covered under this apprenticeship bill.

So far, the apprentice program is not going well — too few truckers are signing up and too few youths are applying. However, a school featured on a web post has starters trying drivers to provide a vocation and leverage the apprenticeship. The new drivers will get their CDLs as soon as they turn 18.

 

Will it significantly improve the shortage of drivers?

Probably, it will not. So, reducing the number of trucks needed to ship the cargo simply by using our load optimization software becomes even more profitable. Furthermore, load optimization cuts transportation costs, decreases carbon footprint and landfill waste, and makes the company more sustainable.

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