A single shipment delay can ripple through the entire economy. When trucks stop moving, manufacturers miss production deadlines, retailers run out of stock, and supply chains stall. As the backbone of commerce, the trucking industry continues to see rising demand, but it faces a more challenging road ahead.
From skyrocketing litigation costs to organized cargo theft, today’s risks could severely expose your business. Trucking companies need to move from reactive problem-solving to proactive risk management. Here are the major issues challenging the industry, along with strategies to stay ahead of the curve.
HOW TO DEAL WITH THE DRIVER SHORTAGE?
Driver shortages have plagued the industry for years and show no signs of easing. The American Trucking Association reported 82,000 vacant driving positions at the end of 2024. That number could hit 160,000 by 2030. This issue is driven by increasing freight demand coupled with an aging workforce, difficulty attracting young drivers, and high turnover rates. The driver shortage is not only a staffing issue but also creates operational risks, like shipment delays and higher crash rates due to more inexperienced drivers on the road.
Risk Mitigation Strategies
- Successful companies diversify recruitment pipelines by targeting younger drivers, women, and veterans through dedicated outreach and training programs.
- Invest in retention by offering competitive compensation, health benefits, and predictable schedules.
- Partnering with CDL schools to establish direct pipelines and subsidize licensing for new entrants can help reduce the number of crashes.
- Invest in dashcams to monitor and coach new drivers. Preventing costly accidents ensures you and your fleet are insurable at affordable rates.
HOW DO I MANAGE FUEL AND OTHER OPERATIONAL COSTS?
Fuel is one of the biggest operating costs for fleets, often making up 20 to 40 percent of total expenses, according to American Truck Business Service. All of this occurs as companies face pressure to cut their carbon emissions to meet climate targets. While you can’t control fuel price trends or the environment, you can manage your spending.
Risk Mitigation Strategies
- Use telematics and route optimization to cut down idle time, unnecessary miles, and monitor excessive speeding.
- Fuel purchasing strategies include fraud prevention measures and vendor risk assessments. Companies utilize fuel cards that restrict purchases to specific locations, times, and amounts.
LAWSUITS ON THE RISE: HOW TO FIX IT?
The rise in “nuclear verdicts,” jury awards exceeding $10 million, has turned even minor accidents into potential financial disasters. The American Transportation Research Institute reported that trucking verdicts have increased more than 50 percent each year over the past decade. This is largely because of changing jury attitudes, aggressive legal tactics, and the influence of third-party litigation funding.
Risk Mitigation Strategies
- Not only can dashcams help train new drivers, but they also provide crucial evidence and insights into incidents, leading to fairer outcomes in legal proceedings.
- Carefully document safety procedures and maintain compliance.
- Check insurance policies to ensure coverage matches potential litigation exposure.
HOW TO PREVENT CARGO THEFT?
Cargo theft caused nearly $40 million in losses in the third quarter of 2024 alone. A recent study by Verisk reports 776 cargo theft incidents occurred in Q3. The most targeted states were California, Texas, and Illinois, with vulnerable locations being warehouses, distribution centers, and truck stops. Since the COVID-19 pandemic, organized crime has risen. Criminal networks increasingly use advanced tactics, including digital impersonation and coordinated hijackings. Cargo theft not only results in direct financial losses; it also disrupts delivery schedules, raises insurance claims, and can damage customer trust.
Risk Mitigation Strategies
- Use GPS-tracked locks and geofencing systems to monitor and secure high-value loads.
- Partner with supply chain security networks and educate drivers on theft prevention protocols.
- Review physical security at facilities and staging areas to prevent organized theft operations.
- Conduct prehire background checks on drivers and other employees involved with cargo loading and logistics.
HOW IS TECHNOLOGY PLAYING A ROLE?
It’s no secret that new technology is transforming the trucking industry. Companies are adopting artificial intelligence (AI), autonomous vehicles (AVs), and electric vehicles (EVs) to improve efficiency and sustainability. However, these same advancements also create new vulnerabilities, especially in cybersecurity. The FBI is now stepping in by warning transportation sectors and the airline industry about a widespread hacking group. As fleets become more interconnected, it’s crucial to implement strong cybersecurity protocols.
Risk Mitigation Strategies
- Conduct regular risk assessments and penetration tests on AV/EV systems and AI software.
- Work with vendors to ensure third-party software complies with cybersecurity standards.
- Train employees and drivers on digital hygiene, phishing awareness, and response procedures.
- Collaborate with your insurance provider to secure a comprehensive cyber liability policy.
HOW ARE TRUCKS MAKING THE ENERGY TRANSITION?
EVs are growing in popularity, prompting fleet owners to ask: “What will a world without gas and diesel vehicles look like?” This change is becoming more real as the U.S. adopts renewable energy and zero-emission vehicles (ZEVs). Transitioning a fleet from gas to electric happens gradually because of high upfront costs and risks like battery lifespan issues and costly repairs. Still, fleet owners need to start considering EV options now to remain competitive in a future focused on clean energy and zero-emission transportation.
Risk Mitigation Strategies
- Implement a phased vehicle replacement plan that includes electric and low-emission options.
- Use government incentives and tax benefits for green technology.
- Monitor carbon emissions with sustainability dashboards and reporting tools.
WHAT IS THE FUTURE OF THE TRUCKING INDUSTRY?
The trucking industry’s future depends on effectively managing risks ranging from labor and legal system abuse to cyber threats and climate change. Risk management must shift from a reactive approach to a strategic priority, with operations leaders coordinating efforts across all departments.
Risk Mitigation Strategies
- Risk is no longer an afterthought: Financial, operational, and reputational risks are now deeply interconnected.
- Data becomes the new defensive line: Companies that leverage fleet management technology and dashcams will be better equipped to defend against frivolous lawsuits and anticipate disruptions faster.
- Culture matters: Safety-first, innovation-ready organizations will perform better in turbulent conditions.
- Partnerships are crucial: Risk management today is a shared responsibility among carriers, shippers, insurers, and tech vendors.
about the author
Robert Worden, CSD, construction risk advisor at POWERS Insurance & Risk Management. To learn more, visit www.powersinsurance.com/business/construction-risk-management.
