Supply Chain and Demand
Prices are rising not because products are necessarily manufactured here; it is because they are being transported here. When you are out shopping this year, whether you are buying in person at a local store or shopping online and having something shipped to your door, consider the cost of supply chain. For many, if not all, sales transactions, the price of logistics is included in the products we buy. From transportation costs of materials manufactured, to the transportation costs of the finished merchandise, to the transportation cost to bring it to your doorstep. It all adds up.
Every Trucking Company of Redmond, provided us with a few notes to consider from the recent Oregon Trucking Association 2020 Convention.
2020 Industry issues:
- Driver Shortage
- Driver Compensation
Driver wages are up 43% since 2012
Benefits are p 55%
- Trucking Parking
- Compliance, Additional Regulations and Safety
- Insurance Costs
- Driver Retention
- What is coming next …the unknown
Oregon is the most expensive state to operate a truck, with Washington and California a close second.
The average cost to operate a truck today is $1.82 per mile.
1 in 7 jobs in Oregon are within the transportation industry.
With COVID restrictions, truckers face closed rest stops, and closed rest rooms. No place to park to abide federal regulations to stop 30 minute and rest during the first 8 hours of driving, or sleep after 10 hours of driving. Restaurants are closed with very few places to eat. Drive-ins are not an option either for obvious reasons.
Trucks along with other forms of transportation will play a vital role in the distribution of new COVID vaccines and the restrictions, specialized equipment needed will be costly.
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