Four Trends Shaping the Future of the Trucking Industry

Four Trends Shaping the Future of the Trucking Industry

So much of the world’s economy revolves around the trucking industry. It is a vital link in both domestic and global supply chains, making it the backbone of modern business.

But the sector has seen disruption in recent years, and carrier companies, shippers, and logistics professionals alike are yet to see things settle down properly. The emergence of key technology and new regulations continues to transform the sector, which carrier companies have to navigate while staying flexible and resilient.

Further changes are on the horizon. From sustainability to evolving market conditions and trucking technology trends, here we explore the factors shaping carrier companies’ near future.

The freight market in 2024

It’s been a complex few years in freight: geopolitical disruptions, climate effects, and technological innovations have all led to an increasingly volatile market. In the past, hauling contracts would have been completed quarterly or month-by-month, creating a more stable playing field for carriers and shippers that could be insulated from disruptions and unexpected events.

But the market is less predictable than it used to be. On the one hand, carriers can benefit from fast-moving conditions like these, as high demand leads spot rates to climb up and create opportunities for more profits. But, in other ways, the lack of stability can make it hard for transport companies to make long-term business forecasts and plan ahead.

Meanwhile, new technology and sector rules are changing the nature of freight contracts altogether. They need to be more flexible and adapt to changing operations. From EVs to route optimisation and decarbonisation targets, these are some emerging trucking industry trends influencing the road ahead.

Four trends impacting the future of trucking

While not an exhaustive list, here are the key freight trucking industry trends we expect to define 2025 and beyond:

1. CO2 Tolls
   Environmental, Sustainability and Governance (ESG) concerns are top priorities for governments around the world, and the European Union (EU) this year made it a requirement that tolls and vignettes for heavy-duty vehicles be determined, at least partially, by a vehicle’s CO2 emissions.

   There’s no denying the impact this will have on carrier operations. Although these tolls will prompt carrier companies to make their operations greener, it’s also possible they will need to adjust contract terms and conditions to account for higher costs as a result.

2. Rising costs
   In the UK and Europe, fluctuating fuel prices and driver shortages have already made freight more expensive over the past two years. Alongside this is vehicle maintenance expenses and the price of insurance, contributing to sustained cost pressure on the industry. Diesel prices also jumped up again in 2024, which have further increased freight rates.

   Demand has been resilient so far this year, but looking ahead to 2025 CO2 tolls are expected to further impact the market’s dynamics. As a result, the industry may see truckers adapting their contracts by including flexible pricing structures and cost-sharing agreements.

3. Sustainable fleets
   The need to cut carbon emissions has also prompted serious innovation of transport equipment, as we see carriers shift from electric to hybrid and alternative-fuel vehicles. An expensive technology, this adoption is still in its early stages, but demand for sustainable vehicles is only going to increase as countries and companies work towards zero-carbon goals.

   Promising signs are already here: in early 2023, UK government data revealed that electric heavy goods vehicles (HGVs) registrations had increased 400% year-on-year. Currently, Germany and the UK have the largest zero-emission truck markets. In Q2 2024, the uptake of new HGVs in the UK rose by 30%.

4. Data-driven route optimisation
   The power of data is immense. Although the news is teeming with stories about new data-driven technology, you don’t hear as much about why it is defining one of the key technology trends in the trucking industry. From analytics to machine learning algorithms and generative AI, real-time data has several applications for freight carriers, and the most significant lies in journey planning.

   Data-driven route optimisation is an emerging tool that uses algorithms and real-time analytics to boost efficiency and cut fuel consumption. Traditionally, carriers, operators, and drivers would get updates from across their supply chain but these would be delayed, hindering the impact of their responses.

   Now, real-time data streams enable carriers to analyse traffic, weather, and vehicle performance. Through data analytics, carrier companies can better track inventory, and also get better visibility over driver behaviour on the road to identify areas for improvement. These will see a significant impact on reducing excess capacity, and help drive down labour and inventory costs.

Prepare for the road ahead with Amazon Relay

Freight carrier’s futures are being shaped by technological, environmental, and economic shifts. It’s an exciting time, but if you own or work for a transport company you’ll know how important it is to be resilient during periods of complex change which can be hard to predict.

When you create your Amazon Relay carrier account, you’ll benefit from access to a range of load work, whether it’s spot freight, short-term contracts, or six-month agreements. Drivers who use the app benefit from real-time tracking tools, automated processes, and other tools to help them streamline their journeys and deliver great service for shippers.

Find out more about how Relay can support your carrier business today.