Enhanced collaboration via transportation management platforms, real-time freight visibility to guard against freight fraud, and digital tools to speed up and streamline processes will help the transportation industry overcome obstacles it is presently facing.

Trimble released a Transporeon report identifying key developments impacting the future of the truckload transportation sector in North America – The Road Ahead: Key Trends and Capabilities Shaping the North American Freight Transportation Market.

The report highlights the growing importance of Mexico as a source of U.S. imports, sustainability and the electrification of trucking, California’s AB5 bill and freight fraud.

It analyzes market trends and data based on survey responses from Indago supply chain research community members as well as the Transporeon shipper and carrier community.

The current state of North America’s truckload sector — low demand and ample capacity — has created challenges for carriers. “Blah” is as good a word as any to characterize the truckload market today and for the rest of 2024, the report noted.

Driven by the combination of global geopolitical volatility and sustainable emissions goals, the continuing growth of nearshoring is identified as a key trend for truckload-related businesses.

As Mexico surpasses China as the leading source of goods imported into the U.S., 88% of small to medium-size supply chain businesses plan to migrate partially to suppliers closer to the U.S., while 45% plan to switch all of them.

According to the Bureau of Transportation Statistics, 7,356,659 trucks entered the U.S. from Mexico in 2023, a 1.4% increase from 2022. “The port of Laredo, Texas handled nearly 3 million incoming trucks from Mexico in 2023, a 4.9% increase from 2022. Laredo also manages nearly 40% of the truck volume on the Southern border.”

Shippers who are new to importing goods from Mexico, however, need to be aware of the risks and challenges involved. The top risk is cargo theft while goods are in transit.

According to Overhaul, “During 2023, Mexico experienced 20,746 cargo theft events, representing an increase of 3.1% compared to 2022 and 4.4% over 2021. 81% of these events were concentrated in the Central and Southeast regions, with 95% occurring in just 10 states, including Guanajuato, Jalisco and Michoacán.”

Freight fraud is a growing risk in the truckload sector, with CargoNet reporting a 59% increase in cargo theft in the third quarter of 2023 compared to Q3 2022. An April 2024 survey found that 48% of respondents experienced cargo theft or freight fraud in the past year. Shippers, carriers and logistics service providers are advised to consider and prevent freight fraud.

The report said new emissions standards for heavy-duty trucks at both state and federal levels are accelerating the switch to more emissions-friendly vehicles, with forensic carbon accounting and measurement a potential legal necessity for shippers and carriers. Hurdles such as mileage range and charging infrastructure are among the limitations preventing fleets from greater adoption of electric vehicles.

Driver shortage is an ongoing challenge, adding to the cost burden of enterprises as they bid to retain experienced and valuable driver support. Costs have the potential to rise further following the enactment of AB5 in California, which mandates reclassifying many independent contractor drivers as employees, requiring trucking companies to pay additional benefits and payroll taxes. The possibility of similar legislation spreading to other states could further exacerbate these challenges.