The rise of e-commerce has revolutionized the way we shop, providing consumers with unprecedented convenience and access to a global marketplace from the comfort of their homes.
For truck drivers, the growth of e-commerce has fundamentally altered traditional trucking routes, job roles, and the overall landscape of the trucking industry.
Today, there is an increasing focus on short-haul routes and last mile delivery, which allows drivers to remain local and spend more time at home. This growing demand has also led some companies to offer higher pay and improved working conditions, giving the drivers the power to leverage a better career.
Keep reading to find out how e-commerce has affected the truck driving industry, including the benefits, challenges, and potential future changes.
Increased Demand for Short-Haul Routes
One of the most significant and immediate impacts the rise of e-commerce has had on the trucking industry is the increased demand for short-haul pickup-and-delivery runs. In fact, the American Transportation Research Institute (ATRI) has reported that the average trip length for truckers has decreased by 37 percent since 2000.
As e-commerce companies, like Amazon and Ebay, and their competitors, such as Wal-Mart, continue to offer consumers benefits like same-day shipping and real-time product tracking, trucking companies must keep up by providing quality last mile delivery services.
Last mile delivery is the transportation of a product from a hub, such as a local warehouse or fulfillment center, to its final destination at either a retailer or customer’s home. These types of runs involve significantly less mileage than long-haul routes, but require a strict delivery schedule with less room for error.
This surge in demand for short-haul routes has led to a rise in job opportunities within the trucking industry, and it has also impacted drivers’ work-life balance. More drivers are needed to handle the increased volume of deliveries, and many of these drivers now have the opportunity to return home more frequently.
Higher Pay and Improved Working Conditions
The growing demand for shorter, pickup-and-delivery jobs over longer, inter-regional or long-haul jobs has impacted the daily life and job requirements of many drivers.
Not only are these drivers able to spend less time on the road and more time at home, some e-commerce companies are offering competitive pay and benefits to attract and retain truckers. For example, Walmart now pays its first-year drivers up to $110,000, more than double the industry median for long-haul drivers.
The rise of e-commerce has also created more job opportunities for truckers, especially younger drivers and those who are looking for a more stable work schedule. Because in the US drivers must be at least 21 years old to complete cross-state runs, the high demand for local e-commerce deliveries has created openings for younger drivers to enter the field.
Technology and E-Commerce
The growth of e-commerce has also driven innovation in logistics technology. With an increased demand for same-day deliveries and real-time tracking, e-commerce has led carriers to implement and improve route optimization software, GPS tracking, and automated load matching systems.
Although to some truckers new technologies might seem like one more thing to learn and be responsible for, these innovations allow for more precise and timely deliveries, which are crucial for maintaining the tight schedules of last mile delivery. They also can save drivers time and money, lowering expenses on fuel and vehicle repairs.
Potential Challenges
Like any innovation, e-commerce is not without its challenges and potential negative impacts on the trucking industry. Some of these impacts have already been reflected in carriers and shippers across the nation, while others are still being researched.
With the dramatic increase in demand for short-haul drivers, some experts are worried that this growth could worsen the already existing shortage of long-haul drivers. Although OTR driving has its own benefits and advantages, the long hours away from home and high turnover rates in long-haul trucking may push drivers to seek employment in the burgeoning short-haul sector.
The stringent delivery expectations of e-commerce deliveries has also caused trouble for shippers and companies. To save time and improve service, many shippers choose to move their freight via full truckload to meet strict delivery expectations, even if they lack enough freight to fill the entire truck.
In fact, a study by Flock Freight found that 43% of truckloads moved partially empty in 2023, with an average of 29 linear feet of unused deck space per truck.
To combat this challenge, carriers and shippers have increasingly been choosing shared truckloads or digital freight matching technology to maximize efficiency and reduce costs. However, these means drivers should familiarize themselves with these options and how it could affect their daily operations and expectations.
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