At the core of the contemporary world is an intricate and expansive network: the transportation industry. This sector isn’t just about moving goods from one point to another. It represents the arteries through which the lifeblood of the global economy flows.
Yet, like any vast system, the transportation industry faces its own set of challenges. Some are old adversaries, evolving with time, while others have emerged more recently, painting a complex picture for the future.
Steve Yariv, a seasoned entrepreneur with decades of experience in the transportation industry and the founder of Dealers Choice Auto Transport (DCAT), has witnessed these challenges first-hand.
Shedding light on the issues transport professionals like him grapple with, he highlights that the day-to-day operations in transport are more complex than they appear and that the sector’s core problems have, in some way, existed for decades but that it’s their intensity that has changed.
“When you’ve been in transportation as long as I have, you develop a keen understanding of our sore spots,” he says. “Currently, we’re plagued with a severe labor shortage crisis, and it feels like it’s nowhere close to being resolved.”
The shortage of qualified drivers is undeniably the number one challenge faced by the logistics industry. In 2022, The American Trucking Association projected the truck driver shortage to remain near its historical high of 78,000.
Moreover, Yariv points out that there has been a noticeable disinterest among the younger generation in pursuing careers in driving, deepening the problem. In the past, enticing commercials showcasing the opportunity to explore landmarks while getting paid attracted many individuals to the profession, but nowadays, these advertisements are few and far between.
“The transportation industry has seen a significant shift in societal perception. Driving for a living used to be seen not just as an adventure but as a legitimate way to earn a living,” Yariv shares.
Adding to the challenge of hiring qualified drivers is the cost factor that has made the process more expensive for companies. Until a decade ago, paying a driver $1,500 for a trip from Florida to New York was great pay. But in today’s market, even double that amount isn’t considered exceptional.
Yariv offers an intriguing perspective here. “While some industries offer around $100 or $800 for six days of work, car transporters can make $2,500 for just five days of work, yet this is often overlooked.”
Another major factor is the increased level of responsibility involved. Car transporters bear the responsibility of safely delivering the vehicles entrusted to them. Any mishap during transportation can result in financial liabilities for the driver, which can certainly be a significant deterrent for prospective entrants.
This is why Yariv emphasizes the need for proactive measures in addressing these concerns. “We must find ways to alleviate these concerns through stronger insurance coverage and improved training programs.”
The insurance conundrum is indeed a corrosive issue plaguing the industry. Yariv explains that many transportation companies claim to have insurance, but in reality, their policies are merely formalities. These ‘peril’ policies, as they’re often referred to, are riddled with exceptions and rarely provide comprehensive coverage.
“A common scenario is when a driver unloads a car and drives it a short distance, say, into a dealership,” he explains. “Many of these policies don’t offer coverage if an incident occurs during this short drive, arguing that the driver is a specific distance away from the trailer.”
This leaves transporters in a difficult situation, making them liable for damages even during the most routine tasks. Unlike the majority, however, DCAT is fully insured and committed to the satisfaction and safety of both its drivers and customers. The company also carries a secondary policy, considering the sheer volume of cars they transport.
As the backbone of the global economy, the transportation industry certainly has a complex web of issues to wrestle with. Looking ahead, Yariv asserts that beyond massive networks and impressive logistics, the human element mustn’t be ignored, because without it, this network would collapse entirely.
To overcome its issues, the industry must be willing to adapt and provide contemporary solutions to contemporary setbacks. Demystifying the industry’s practices and providing fairer and more comprehensive insurance policies, he says, would be a great start in not just attracting more workforce but also in upholding trust and integrity.
As Yariv reiterates, “It’s more crucial than ever for the transportation sector to be clear, fair, and forward-thinking. Only then can we inspire confidence and grow as a united force.”
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