Challenges Impacting Small Fleets

As operational challenges ramp up for trucking fleets, industry experts are finding that these challenges disproportionately impact smaller fleets. Increasing insurance costs, maintenance costs, ongoing regulatory changes, road conditions, and driver recruitments are just a few major examples of hurdles that may slow future growth.

Small fleets struggle more than their larger counter parts in dealing with recruitment and retention. Many large carriers opted to increase drivers’ pay as an incentive to recruit and retain both drivers and other employees. However, they were able to do so by shifting contract terms, while many smaller fleets are unable to do so.

New disruptive competitors in the trucking industry are also creating headaches for smaller fleets. Some of these offer cutthroat rates that established fleets can’t maintain. While it’s not a sustainable business model for these disrupters, it allows them to poach customers and force down prices across the industry until they can establish a market presence. Simply said, they are buying market share. Smaller fleets either risk losing their customers or must lower prices to retain them.

Shifting government regulations are especially challenging for smaller fleets as they lack the resources to stay on top of regulation and compliance related changes. Hours of service regulations, and safety inspection requirements must be reviewed by fleet management and then effectively conveyed to the drivers. This is no simple task for a busy and growing small fleet.

Small fleet owners and managers can reach out to the trucking experts at Interstate Motor Carriers. Our team works diligently to service our  trucking clients every day to help them manage risk, reduce losses, and solve their most challenging problems. Contact us to learn more.