Issues on Trucking Services

1. Regulations
 From hours-of-service to E-log devices to fuel emission
requirements, government rules dictate almost everything about
operating a truck. Most of the rules are designed to make trucking
safer, but they also create a lot of red tape and extra expense for
drivers and fleets.

 Truck ban must also be taken into consideration. This can delay
deliveries that can affect the economy.

2. Fuel
 The oil price hike and fuel taxes. These two go hand in hand. The
oil price hike is caused by various factors like the oil prices at the
world market.
 Excise taxes on fuel is implemented alongside with the TRAIN Law
in 2018. For trucks which are diesel users, a 3-tranche increase
will happen in the following succession, Php2.50 per liter in 2018,
Php4.50 per liter in 2019 and Php6.00 per liter in 2020.

Both of these affect the trucks and their fuel expenses. But they cannot
simply pass on the cost to their clients, they are shouldering a big chunk
and most of the time, they are at a loss.
3. Cash Flow
 Trucking fleets may wait as long as 60 to 90 days to get paid by
brokers and shippers. This extended cycle can drain a fleet’s cash
flow and limit growth. Factoring—also called “accounts receivable
financing”—turns fleets’ invoices into cash in less than a day,
quickly building up their working capital.

4. Driver
 Driver Retention - There is a shortage of truck drivers nationwide.
Meanwhile, driver turnover rates are nearly 100%. To recruit and
retain drivers, many fleets are boosting salaries, improving
benefits and offering performance bonuses.
 Driver Health - Truck drivers are twice as likely as other workers to
be obese, have diabetes and not have health insurance. Poor
health also puts drivers at risk for sleep apnea and other
disorders.

5. Infrastructure
 Without more public funding for roads and bridges, there will be
more accidents, more delays and less profit for trucking
companies in the future.

6. Safety
 Accidents and fatalities have increased as more trucks and other
vehicles share the highways. Truck drivers must appreciate the
size and weight of their trucks and other factors and not take risks
that can cause serious injuries and death to other highway
drivers. This is to minimize the risk of direct and indirect cost due
truck crash.