In 2024, trucking executives will keep a close eye on rising operating costs, technology adoption, and workforce retention issues while waiting for freight demand to recover. After Yellow Corp.'s bankruptcy last summer—the largest in trucking history—carriers continue to compete for market share, and many companies will welcome new employees, new trucks, new terminals, and new customers.

Industry stakeholders will push for the elimination of the federal fuel excise tax, permanent truck parking funding, and freight brokerage fraud protection as issues that could bebipartisan common groundin a presidential election year.

These trends will all weigh on Webb Estes' mind—he had a busy first year as president and chief operating officer at Estes Express Lines.

The carrier purchased24 Yellow terminalsand gave employees record raises duringa cyberattack last fall. This month, the company deployed 12 electric Freightliner eCascadias ordered in 2019 in California and installed solar panels at several terminals.

Watching 22,000 Estes employees spring into action after the cyberattack gave the company president a core lesson he will carry into his second year and beyond.

"I have a great group of people who are passionate about excellence," Estes said. "It takes all of us working together."

Keeping a close eye on rising costs

According to the American Transportation Research Institute, average trucking marginal cost in 2022hit a record $2.25 per mile. Operating costs remained high last year, and a significant drop this year is unlikely.

That is one reason the American Trucking Associations continues to push for eliminating the federal fuel excise tax. The association says the move would save about $25,000 per tractor while promoting the adoption of newer, cleaner trucks.

"This money has a huge impact on the success or failure of businesses," ATA President and CEO Chris Spear said in an interview. "I am optimistic that this will significantly improve operating costs for every member."

Trucking operating costs hit record high in 2022

Since 2011, per-mile trucking costs including driver wages, equipment costs, tolls, and fuel have

While waiting for a freight rebound, carriers will likely continue to closely monitor fuel, labor, lease payments, maintenance, and other costs, focusing on any potential savings.

"Truckers are in a tough spot right now," Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association, said in an interview.

Focusing on retention amid labor turmoil

Although declining freight demand haseased complaints about driver shortages, and some companies have cut jobs to match lower revenue, labor will always require ongoing attention from trucking executives regardless of market conditions.

If the trucking industry hopes to avoid the work stoppages that plagued automakers' operations last year, 2024 has already been disappointing. In the second week of January, more than 130 US Foods truck drivers in the Chicago areawent on strike, saying the company failed to meet their demands during negotiations.

When Yellow collapsed, the Teamsters union lost more than 22,000 members. But in a year of active union activity in the U.S., the Teamsters negotiated with TForce Freight and ABF Freight, securing labor contracts last year for members at the two remaining major unionized less-than-truckload carriers. A 39-day United Auto Workers strike by Mack Trucks workers ultimately led to a new five-year contract for nearly 4,000 workers.

When it comes to contract negotiations, pay raises are far from the only demand of workers. They also want protection from job automation and limits on how employers use tools such as driver-facing cameras.

The TForce Freight contractprohibits the use of cameras for discipline and bans robots, driverless vehicles, drones, or other technology from transporting goods or replacing drivers, clerks, or dockworkers.The ABF Freight contractsimilarly bans inward-facing cameras, audio recorders, body and biometric sensors, or driverless autonomous vehicles.

Digesting the impact of Yellow's bankruptcy

As the company that was once the largest unionized LTL carrier entered Chapter 11 bankruptcy last summer, Yellow's freight assets may have been of least value to competitors.

Its roughly 170 owned trucking terminals—many in high-demand markets—brought in nearly $2 billion from the highest bidders at auction. The federal court overseeing the bankruptcy approved plans to auction off its trucks and trailers this year.

A. Duie Pyle Chief Operating Officer Frank Granieri said Yellow's collapse boosted its LTL competitors in the second half of last year by removing capacity from the market. His company acquired four Yellow terminals at auction.

"Interestingly, if Yellow had not exited the market, looking at the weight per shipment across the industry, you would find the market was quite weak," Granieri said in an interview. "That reflects a weak economy, especially in areas like manufacturing and real estate."

Adopting electric trucks and other technology

The trucking industry has no shortage of people who are cautious or even skeptical about heavier, more expensive electric trucks and other emerging technologies.

But corporate sustainability policies and regulatory deadlines in places like California requiring a shift to zero-emission vehicles are prompting fleets to increasingly buy Freightliner eCascadias and other electric trucks in bulk.

Estes,Walmart Canada、Reyes Coca-Cola Bottling、Penske Truck Leasing, Pitt Ohio, and Ryder System , among others, have all ordered or received zero-emission trucks in recent months.

The ransomware attack Estes suffered reminds carriers of the necessary technology investments required to protect operations. The National Motor Freight Traffic Association, in its2024 Trucking Cybersecurity Trends Report, recommends the industry address threats by upgrading systems and training employees to recognize phishing.

"While focusing on the need for enterprise systems and the technology that supports them, we cannot ignore threats directed at the trucks themselves," the report states.

Pushing for parking spaces and ending brokerage fraud

OOIDA's Pugh had hoped 2023 would be the year the federal government passed legislationallocating hundreds of millions of dollars for truck parking spaces.

That did not happen. However, OOIDA plans to double down on its push in this critical election year.

"It failed to pass in 2023, 100 percent because of political infighting," Pugh said. What is its appeal in an election year? "Not only can lawmakers take credit, but our president can too... he needs some accomplishments to show."

More truck parking spaces and a crackdown on rampant brokerage fraud—which costs the industry anestimated $800 million in unnecessary expensesand costs drivers countless hours and miles without pay—are priorities OOIDA will advocate for this year.

"America needs these issues to pass to move forward and become a stronger, better nation and take care of its citizens," Pugh said.