Explore LoadMiles: Efficient Truck Management Software

 Discover LoadMiles: efficient truck management software for streamlined logistics, simplifying transportation and seamless logistics processes

The trucking industry is facing a high failure rate, with an estimated 60-80% of new companies failing within their first year of operation. This alarming trend continues, with around 90% of trucking companies not surviving past five years.

Why do trucking companies fail?

The main reasons for the high failure rate in the transportation industry are

complex, multifaceted, and depend on a variety of factors.

Operational complexity:

For newly established companies, managing operations in the trucking industry poses significant challenges. Trucking operations are demanding and time-consuming. Most significant issue is dispatch management coping with unpredictable weather and traffic that hinders normal operations.

High Costs:

Higher operational cost is another big problem truckers have to face. Main costs include acquiring a new truck, maintaining it, buying fuel, and paying drivers. Thus, truckers need to consider the startup costs which are large.

Competition:

The intense competition and saturation of workforces are increasing competition among trucking companies on driver pay, hindering profitability for many companies.

Financial Incompetence:

The poor financial management practices observed in many trucking companies can be attributed to several reasons. Poor recordkeeping, bad cash flow management, and inadequate budgeting.

Regulations:

New trucking companies face significant compliance costs. These regulations, which cover safety, hours of service, and other compliances, are complex to adopt and expensive to implement.

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