Freight demand is surging in the U.S., but persistent issues within the logistics industry and a critical shortage of truck drivers are putting significant pressure on the country’s domestic supply chains.
According to a survey from the business research firm Tech.co, 63 percent of U.S. logistics businesses have reported an increase in freight demand over the past year. In a recent report, Moving Goods With Fewer Hands, the company also found that 69 percent of respondents were struggling to meet this demand because of driver shortages.
Why It Matters
A nationwide shortage of truckers alongside rising demand threatens to limit businesses’ operational capacity. The issue has been dubbed a “ticking time bomb,” and it could ripple through the logistics sector and the economy as a whole—potentially disrupting supply chains and leading to both product shortages and production delays. However, it has also prompted many companies to prioritize retention and employee satisfaction to ensure they have sufficient staff to meet the ballooning demand.
In addition to dire trucker shortages, the fluctuating tariff policies of President Donald Trump‘s administration have injected further uncertainty into the logistics sector, forcing companies to constantly adjust operational capacities, revise staffing requirements and reassess supply chain routes in a bid to remain efficient.
What To Know
According to Tech.co’s survey, Texas has seen the greatest increase in freight demand, with 21 percent of respondents reporting significant or slight increases compared to last year.
Unsurprisingly, the remaining states in the top five are coastal and where some of the country’s busiest ports are located. The Lone Star State is followed by California (20 percent), New York (16 percent), Florida (14 percent) and Georgia (13 percent).
According to Jack Turner, the editor of Tech.co, the increase in freight demand will “almost certainly have a knock-on effect on the consumer, with the associated increase in costs being passed on to them.” He told Newsweek that this could also lead to product shortages “in situations where companies deem the cost of importing or moving goods not viable, if margins are too thin,” and products across the board may become more expensive.
Turner added that the issue was “further exacerbated by the current recruitment crisis in logistics, with fewer drivers to actually move goods around the country.”
In its recent report on the logistics industry, Tech.co found that 85 percent of businesses were operating at full capacity. However, 63 percent said their ability to recruit and retain drivers had either worsened or stagnated over the past year.
What People Are Saying
Jack Turner, the editor of Tech.co, told Newsweek that the long-term outlook for the logistics industry was “murky at the moment.”
He added: “The current ongoing tariff confusion especially makes it hard to plan for the future, with a lack of stability meaning that we’re likely to see demand sharply rise and fall as tariffs change. We saw a huge surge in demand before the first round of tariffs came into effect, and it’s likely this pattern could repeat as companies try to ride the wave and anticipate the best times to import.
“Similarly, while the driver recruitment issue is being addressed, the industry has a long way to go to appeal to new drivers who are looking for the work/life balance that a life on the road can’t easily provide.”
A spokesperson for the Department of Transportation, in response to the ongoing trucker staffing issue, previously told Newsweek: “Secretary [Sean] Duffy is working tirelessly to address the concerns of American truckers who have been vocal about the issues facing their industry, including burdensome regulations that make it harder for truckers to do their jobs while failing to go after bad actors that spoil the industry.
“In addition to regulatory relief and expanding truck parking, we are also enhancing access to [Commercial Driver’s License] training by making more than $90 million available through the Commercial Motor Vehicle Operator Safety Training and Commercial Driver’s License Program Implementation grant programs.”
What Happens Next
The U.S.’s trucker shortage is expected to balloon to more than 160,000 by 2030, according to Statista.
The post Map Shows States Seeing Surging Freight Demand Amid Logistics Crisis appeared first on Newsweek.
