Trucking Industry Outlook for 2024

The trucking industry in the United States has faced multiple challenges over the last few years. Rising fuel costs, increasing insurance claims and driver shortages are just a few things that have impacted the trucking economy. The forecast for 2024 shows that many of these issues and others will continue to affect the trucking industry, but new solutions are actively being worked on. During the transition between 2023 and 2024, it is hard to get definitive answers to questions, like if trucking rates will go up in 2024.

Some trends, such as the growing use of technology and shifting consumer spending habits, are permanently changing the freight industry. Learn more about what is going on with the U.S. trucking industry in our trucking forecast for 2024. 

Issues to Keep an Eye on

Several economic and labor-related issues have started affecting the trucking market over the last couple of years. In 2024, these issues will continue impacting trucking companies or become even more considerable challenges for the market. 

These are some most significant issues facing the trucking economy in 2024: 

Changing Labor Regulations 

The passing of California's Assembly Bill 5 is changing the industry's view of independent contractors. Assembly Bill 5 states that anyone who provides labor or services in exchange for payment should be considered an employee rather than an independent contractor. The only time workers can be regarded as independent contractors is if they meet three criteria: 

1. They can work outside of the control of the employer.
2. The tasks performed by the worker are outside of the typical business course of the employer. 
3. The worker is an established independent contractor or tradesperson.

Truck drivers are seen as employees according to the bill, as delivering cargo is the usual business of the trucking and transport industries. Other states may follow in California's footsteps and adopt similar regulations governing independent contractors and employees. These bills can affect how transport companies work, as employees and independent contractors are covered differently by labor laws. 

Rising Cost of Insurance Premiums

A report by the American Transport Research Institute (ATRI) states that insurance premiums rose by 47% from 2009 to 2018 in response to the higher litigation payouts for accidents involving transport vehicles of any kind.

As insurance premiums increase to cover rising payout and litigation costs, transport companies of all sizes face financial uncertainty — but the impacts may be felt most strongly by smaller fleets. The continued threat of theft and increasing cost of commodities, labor and repairs, medical treatment and litigation fees are also likely to affect insurance premiums.

Truck Driver Shortage 

The American Trucking Association (ATA) claims that the trucking industry may be short 160,000 drivers by 2030 unless action is taken. This has led to driver pay increasing as companies seek to attract and retain drivers. In 2024, the driver shortage issue is expected to become more prevalent as demand for goods increases and the aging workforce looks to retire. However, there are a few ways fleets can overcome this shortage in 2024, such as employing foreign drivers and recruiting more young people, women and minorities.

Equipment Shortage 

The COVID-19 pandemic created a semi-truck shortage, and in 2023, companies still felt the after effects of this. Pressure from worldwide labor shortages, including in the U.S., resulted in lower manufacturing rates. Combined with global supply chain congestion, this pressure resulted in fewer new trucks being available on the market. In 2024, there are hopeful predictions that the market will slowly begin overcoming these shortages as other impacts from the pandemic even out. 

Fuel Costs 

The fuel cost is set to increase in 2024, with crude oil expected to reach an average cost of $96 per barrel. Meanwhile, retail prices for gasoline and diesel are expected to decrease. Gas prices in 2023 averaged $3.32 per gallon, but are expected to sit around $3.09 per gallon in 2024. Diesel prices will likely follow a similar trajectory, falling from $4.23 to $3.70 per gallon.

2024 Trucking Industry Forecast

A few trends will impact the freight market in 2024 on top of the sector's labor and economic issues. Some of these trends include: 

• Green trucking: The trucking industry emits a large quantity of greenhouse gases each year. Green trucking is a rising trend that intends to address these environmental issues. The trend focuses on the environmental impact of alternative fuel in the trucking industry. Hybrid and electric trucks and renewable energy sources are being used to lower gas emissions, noise pollution and fuel costs while improving air quality.
• Trucking analytics: Trucking analytics help overcome challenges like unpredictable maintenance needs, inefficient route planning and unoptimized loading. Using trucking analytics to manage fleets is predicted to be used far more by the trucking industry in 2024. Tools that help with route optimization, analyze driver behavior, predictive analytics and capacity utilization will revolutionize how fleets and trucking logistics are managed. Using AI, machine learning and cloud computing, trucking analytics has grown exponentially and will continue to do so as tools become more advanced and helpful.
• Autonomous trucks: Autonomous trucks or self-driving trucks, are a trend that will help with driver shortages, high operational costs and safety concerns. These trucks can operate without needing a human driver by using cameras, radar, sensors and AI to navigate roads, follow routes and avoid obstacles. There are a number of startups that are developing and testing autonomous trucking solutions. These companies are working on ways to improve how autonomous trucks react to different weather conditions, navigate different terrains and utilize real-time monitoring.
• Invoice management: Traditional paper-based invoicing in the trucking industry is slowly becoming a thing of the past. Using the digital and online tools that cater to the trucking industry will revolutionize logistics and management. Keep all your important documents in one place. Tracking all of your finances and client accounts has never been easier, thanks to the variety of software solutions available to fleet managers and trucking companies. By utilizing blockchains, AI and cloud computing, these tools are becoming more sophisticated as new functions are added.
• Shared freight: Shared freights involve sharing warehousing, routes, truck space and distribution centers with other shippers. Through the consolidation of other company's shipments in a single truck, transport costs will be reduced, efficiency will be improved, the risk of damaging goods will be reduced and transit times will be much faster. Companies are leveraging technology like real-time tracking, mathematical algorithms and dynamic pricing to make shared freights an easy-to-manage and accomplishable goal.
• On-demand trucking: Trucks often return underloaded or empty, which is a waste of time and resources and produces a lot of unnecessary emissions. On-demand trucking aims to solve these challenges by providing transit and logistic companies with instant quotes, flexible capacity and real-time visibility. This trend can improve customer satisfaction and lower operational costs by making an entire trip as useful as possible. There are multiple startups that are working on helpful tools like real-time freight matching.

How Freight Companies Can Approach 2024

Knowing what issues the transport industry faces and some significant trends can help freight companies prepare for the year's risks and opportunities and help your company weather the ups and downs. The biggest step you can take toward proactive action is streamlining your business and finding ways to reduce costs without impacting service delivery and driver safety. 

One of the best ways to do this is by embracing technology. Fleet management software can help you monitor driver behavior, analyze fuel usage and implement effective preventive maintenance schedules. Toll management solutions are an effective tool that can make managing paying tolls easier and cheaper.

Using one system lets you manage all toll payment needs in one place, reducing the amount of admin for drivers, fleet managers and the accounting team. It can also reduce the number of costly violations resulting from unpaid tolls, making inter-regional trade easier and preserving crucial route information. Using a transponder and a toll pass solution can help drivers get through tolls quicker, easing congestion and helping them deliver goods on time.

Powerhouse forming to help fleets meet their compliance and back-office requirements in a simple and effective tech-powered solution 

ALBANY, N.Y., Nov. 28, 2023 – Bestpass, the leading toll management and payment platform for commercial vehicles, announced today that it has acquired Fleetworthy Solutions, a provider of fleet safety, compliance, and risk management solutions. Bestpass will now offer a comprehensive suite of services that cover all aspects of tolling, compliance, and safety for commercial fleets of all sizes. 

The acquisition will allow Bestpass to provide a one-stop shop for fleets for all tolling, compliance, and safety needs of commercial fleets leveraging Fleetworthy's expertise and technology to enhance its platform with the integration of Fleetworthy services. Bestpass will also be able to expand its customer base and geographic reach by offering Fleetworthy's solutions to its existing and new clients. The combined company will have a strong competitive advantage in the market, as it will be able to provide a powerful set of dashboards and analytics for fleet compliance, safety and operations.

Bestpass, founded in 2001, covers 100% of major toll roads across the U.S., supports more than 30,000 customers, and processes over $1.5 billion in toll transactions annually. Bestpass offers a range of toll coverage options for owner-operators, regional fleets, and national fleets, as well as customized solutions for specific needs.

Fleetworthy Solutions, founded in 1983, is a leading provider of fleet management and compliance solutions for the transportation industry. Fleetworthy’s cloud-based solution, CPSuite, is the most powerful compliance software in the industry, combining seamless technology, reliable data, and knowledgeable people. It also offers related compliance focused services including vehicle and driver safety compliance, audit support, and extended fleet services, all aimed at helping clients exceed state and federal standards.

“We’re thrilled to welcome Fleetworthy to the Bestpass family,” said Tom Fogarty, CEO of Bestpass. “We know fleet and driver safety is a top priority with our customers. It’s why we sought collaboration with a premier provider to incorporate safety and compliance solutions into our comprehensive range of services. Fleetworthy emerged as the ideal partner, and we eagerly anticipate the valuable contributions this integrated offering will make for our customers.”  

“The combination is a strategic move that will offer a more comprehensive and integrated solution to customers while also expanding our market opportunity,” said Fogarty. “Fleetworthy and Bestpass share the vision of simplifying and streamlining the complex and ever-changing challenges of tolling, compliance, and safety for commercial fleets. Together, we will be able to deliver more value and innovation to our customers and the industry.”

“Fleetworthy is excited to join forces with Bestpass, a leader and innovator in the toll management space,” said Michael Precia, President and CEO of Fleetworthy. “We have been impressed by Bestpass' growth and success, and we share their commitment to customer satisfaction and excellence. By combining our complementary strengths and capabilities, we will be able to offer a unique and powerful solution that will help our customers go beyond compliant and achieve optimal outcomes for their fleets. We look forward to working with the Bestpass team to create a industry leader and more powerful and comprehensive solution set.”  

The terms of the acquisition were not disclosed, and the transaction has already closed. Both companies will continue to operate under their respective brands. Raymond James and DC Advisory acted as financial advisors to Fleetworthy.

About Bestpass: Bestpass is a comprehensive payment platform provider and leader in toll management solutions for commercial fleets of all sizes. Bestpass saves fleets time and money by consolidating payments and providing insight into cost per vehicle. Founded in 2001 by truckers for truckers, Bestpass is a trusted partner on the road and in the back office for customers and tolling authorities. To learn more, visit www.bestpass.com. 

About Fleetworthy: Fleetworthy Solutions, Inc. provides DOT safety and regulatory compliance services to commercial fleets that take them Beyond Compliant. Fleetworthy combines exceptional client service, advanced technologies, and more than 40 years of transportation industry expertise to make sure that drivers and assets are truly fleetworthy. The company helps private fleets, for-hire carriers and third-party logistics companies of all sizes surpass compliance of federal, state, and local regulations and streamline processes to reduce costs and mitigate risks.

Media Contacts

James Loper
Bestpass
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(518) 666-3960 Ext. 909 

Ryan Siefkes
SiefkesPetit Communications
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(425)-392-2611 Ext. 3

Most Expensive Toll Roads in the U.S.

Governments worldwide use tolling to pay for road construction and maintenance. The money collected from toll roads provides an alternative funding source when traditional options fall short. 

Toll management systems bring significant value by making infrastructure projects more sustainable, improving the driver experience and preventing backups. In 1989, the introduction of electronic toll collection ushered tolling into the digital age, removing the need to collect manual payments. The result made toll roads far more efficient and aided traffic flow.

While tolls contribute to operational and infrastructural improvement, the fees can add up quickly for owner-operators and large fleets alike. Knowing which toll roads cost the most to travel through will help you plan more cost-effective trucking routes, saving your company hundreds in operating costs, truck maintenance and fuel expenses.

Where Are the Priciest Toll Roads in the U.S.?

Toll rates can vary depending on factors such as vehicle type, distance traveled, time of day and the specific toll road. Some toll roads have fixed rates, and others may implement dynamic pricing to manage traffic flow and encourage off-peak travel. 

Route planning can save owner-operators and trucking companies a small fortune in toll charges and fuel while maximizing efficiency, meeting deadlines, enhancing customer satisfaction and avoiding traffic congestion. These are some routes and tax facilities to steer clear of if possible.

The Three Most Expensive Toll Roads in America

These are the three U.S. routes with the highest per-mile toll truck prices.

1. Chicago to New York City: The two most expensive trips on this list are to and from New York City. Getting there from Chicago will cost over $440. The journey is 826 miles long, which means each mile will cost you $0.53.
2. New York City to Baltimore: Driving from NYC to Baltimore can cost between $200 and $250 in tolls. This trip is 210 miles long, which means toll costs add up to approximately $1 for every mile driven.
3. Atlantic City to Chicago: Costs can quickly accumulate when traveling between these cities. The total will be around $402, which equals $0.49 per mile. As an 831-mile drive, this is a long and expensive route.

The Cheapest Toll Points in the U.S.

These five toll points have the lowest commercial truck toll rates.

1. The Boulevard Bridge in Virginia is America's most cost-effective toll road for commercial trucks. At only $0.35, this is the route to take if you want to save on fees.
2. You'll find the second-lowest toll price at Florida's Goldenrod Road Extension, at $0.50 to pass.
3. Memorial Bridge is a toll facility in West Virginia that also costs $0.50 to pass.
4. The next on the list is in Virginia, costing a mere $0.70 to pass Route 195.
5. The fifth and final toll point on this list is also in West Virginia. You only need $0.75 to get through the toll and continue your journey.

The Most Expensive Toll Points in the U.S.

These are the country's most expensive toll roads. Many of them are on central arteries, but you can avoid them with careful planning.

1. The Pennsylvania Turnpike is the most expensive toll road in the world by a considerable margin. The average two-axel vehicle driver must pay $112.91, but it can cost trucks over $200.
2. The second most expensive toll road in the U.S. is Whiteface Mountain Memorial Highway in New York. It will cost $28.05 to get past. While this is a high price for one toll, it is only around 25% of the Pennsylvania Turnpike's price.
3. Florida's Ronald Reagan Turnpike toll road charges commercial trucks $26.45 to pass through.
4. The James W. Shocknessy Ohio Turnpike costs $20.50.

The Evolution of Tolling

Toll roads' primary advantage is the ability to generate revenue that governments can reinvest into maintaining and enhancing highways. They make infrastructure projects more financially sustainable and contribute to efficient traffic management. Toll road authorities can enhance the overall transportation network by implementing innovative technologies and adopting user-friendly practices.

Tolling on bridges, roads and tunnels has significantly improved the user experience over the past three decades. With electronic toll collection, drivers can experience faster and smoother transactions, eliminating the need to stop and search for exact change. These systems increase efficiency and reduce congestion at tolls, improving traffic flow and reducing environmental impact. 

However, despite these advancements, there are still complications. According to a Deloitte report, U.S. toll authorities fail to collect approximately $2.24 billion annually due to breakdowns and errors in the collection process. This eye-opening statistic illustrates how much room for improvement there is. 

The industry must adopt advanced payment collection methods, including third-party apps, to streamline operations, make toll payments as seamless as possible and avoid costly mistakes. Simplifying processes for fleets and tolling authorities is the best way to keep moving forward. Until then, toll authorities must stay flexible and show understanding when handling disputes and errors. 

The Value of Toll Management

Without a standardized process, many fleets pay far more in toll expenses than they need to. Even the most organized fleet manager can quickly become overwhelmed with paperwork, violations, and fees for each vehicle. Trucking company owners should periodically review their processes to identify what works and what needs more attention, especially when juggling multiple vehicles and routes. A toll management solution lets you avoid expensive violations and other fees. 

Managing tolls internally is one option, but outsourcing might make more sense for for a thriving or growing fleet. Besides benefiting your bottom line, third-party toll management services can save time on administrative tasks and reduce the paperwork you must file.

Simplify Tolling With Bestpass

Failing to pay a toll can result in violations and fines for your company, but managing your fleet's toll payments can be a lot of hard work on top of everything else you need to do. Bestpass understands what it takes to manage a trucking business, and we offer beneficial toll management solutions for fleets. Our software and services are on the cutting edge of toll management, toll-by-plate coverage and payment processing. We offer flexible transponder options with regional, local and national coverage. When you partner with us, you will also gain access to our commercial toll experts.

Bestpass is the best way to simplify the complexities of managing toll payments. Trust our knowledge and unmatched solutions to oversee your fleet. Contact us or sign up for our services today to learn more.

Geotab customers using Bestpass can now access new toll activity data and reporting features through a single interface

ALBANY, N.Y., Feb.7, 2024 – Bestpass, Inc., a comprehensive payment platform provider and the leader in toll management solutions for commercial fleets, today announced a new integrated offering within the Geotab ecosystem that will enable Bestpass customers access to first-of-its-kind toll data and reporting tools in their Geotab account. Geotab, a global leader in connected transportation solutions, provides telematics – vehicle and asset tracking – capabilities to over 50,000 customers in 160 countries. The integration will allow fleets and owner operators the ability to gain new insight into toll activity to more effectively manage tolls and identify opportunities to reduce toll expenses.

According to David Long, Head of Product at Bestpass, the company developed its Toll Genius data reporting system to integrate with telematics providers, such as Geotab, to enable Bestpass to synchronize and share toll and telematics data through a single interface.

With this integration, Bestpass customers can leverage accurate vehicle data and GPS location through Geotab and match that information with toll charges received from their Bestpass account via the MyGeotab interface. If there's a discrepancy between vehicle GPS location and the toll a vehicle received, it's reported. This feature makes it easier for customers to identify and investigate the issue, dispute an inaccurate toll charge or violation, and reduces the risk of disputes over toll charges with drivers and customers.

The integration also has a new toll activity reporting feature that shows a high-level heat map that allows fleets to identify hot spots for toll spend. "This information can help fleets leverage the toll data to optimize routes and avoid costly tolls," said Long. "Fleets and owner operators using Bestpass can also monitor all toll transactions and expenses in real-time, easily ensure necessary transponder coverage across your fleet, identify fraudulent activity, and more through their account."

According to Jason Walker, Chief Revenue Officer at Bestpass, the integration with Geotab allows Bestpass to combine data -- providing customers with new and useful insight into their business on activity surrounding toll all in one consolidated account. "It's truly an industry-first collaboration regarding information that can be shared about tolls," said Walker. "We expect these new data reporting tools will help our customers find new opportunities to reduce toll costs, manage vehicles using our services, and help optimize other business decisions associated with tolls."

"Geotab is pleased to welcome Bestpass to the Geotab Marketplace," said Robin Kinsey, Senior Manager, Marketplace Sales at Geotab. "This collaboration offers our customers enhanced capabilities for managing toll activities and accessing new data insights, further enriching and optimizing their operational experience."

Bestpass, founded in 2001, is a leading toll management and payment platform for those operating commercial vehicles across the U.S. and Canada. Bestpass covers 100% of major toll roads across the U.S., supports more than 30,000 customers, and processes over $1.5 billion in toll transactions annually. Since 2018, Bestpass has grown its customer base and revenue by more than 3x.  

 To learn more about this integration, visit https://bestpass.com/geotab-integration

About Bestpass: Bestpass is a comprehensive payment platform provider and leader in toll management solutions for commercial fleets of all sizes. Bestpass saves fleets time and money by consolidating payments and providing insight into cost per vehicle. Founded in 2001 by truckers for truckers, Bestpass is a trusted partner on the road and in the back office for customers and tolling authorities. To learn more, visit www.bestpass.com. 

About Geotab: Geotab is a global leader in connected transportation solutions. We provide telematics — vehicle and asset tracking — solutions to over 50,000 customers in 160 countries. For more than 20 years, we have invested in ground-breaking data research and innovation to enable partners and customers, including Fortune 500 and public sector organizations, to transform their fleets and operations. With over 4 million subscriptions and processing more than 75 billion data points a day, we help customers make better decisions, increase productivity, have safer fleets, and achieve their sustainability goals. Geotab's open platform and Marketplace, offers hundreds of third-party solution options. Backed by a team of industry leading data scientists and AI experts, Geotab is unlocking the power of data to understand real-time and predictive analytics — solving for today's challenges and tomorrow's world. To learn more, visit www.geotab.com, follow @GEOTAB on Twitter and LinkedIn or visit the Geotab Blog.

Media Contacts

James Loper
Bestpass
This email address is being protected from spambots. You need JavaScript enabled to view it.
(518) 666-3960 Ext. 909 

Ryan Siefkes
SiefkesPetit Communications
This email address is being protected from spambots. You need JavaScript enabled to view it.
(425)-392-2611 Ext. 3