Industry Context
Navigating Margin Pressure and Market Uncertainty
Managing diverse workforces in transportation requires techniques that respect individual differences while achieving shared operational goals.
The transportation industry is experiencing one of its most challenging periods since the 2008 financial crisis. Asset-based carriers—trucking companies, rail operators, and barge lines that own and operate their own equipment—are caught between rising operational costs and freight rates that haven’t kept pace. According to the American Transportation Research Institute, the truckload sector reported an average operating margin of -2.3% in 2024, with most segments struggling to maintain margins above 2%.¹ Non-fuel operating costs hit record highs at $1.78 per mile while contract rates remained depressed.² The freight recession that began in late 2022 has persisted longer than forecasted, and recovery entering late 2025 remains fragile and uneven across segments. Companies that don’t actively address operational inefficiency, driver retention, and technology adoption will fall further behind.
Common Operational Challenges
Rising costs, persistent driver issues, and technology gaps
Driver Recruitment and Retention Crisis
The driver shortage isn’t hypothetical. Industry estimates place the gap between 60,000 and 80,000 drivers in 2025, with projections climbing to over 170,000 by 2030.³ The average driver age has reached 48, and retirements are accelerating faster than new entrants join the industry.⁴ Recruiting is expensive—especially when competing against larger carriers offering sign-on bonuses you can’t afford. Retention is even harder. When drivers leave after six months, you’ve invested in recruiting, training, and onboarding with nothing to show for it. The lifestyle demands of over-the-road trucking push younger workers toward other industries, and the federal requirement that interstate drivers be 21 limits your talent pipeline.
Technology Implementation Failures
Transportation management systems, route optimization software, and electronic logging devices promise efficiency gains, but many carriers struggle with adoption. You invested in a new TMS that was supposed to streamline dispatch, improve load planning, and provide real-time visibility. Eight months later, half your dispatchers are still using spreadsheets and phone calls because the system is “too complicated” or “takes longer than the old way.” ELD compliance is mandatory, but integration with back-office systems remains clunky. Real-time tracking exists, but customer-facing visibility tools sit unused because nobody implemented them properly. Technology only works when people actually use it.
Operational Inefficiency and Process Gaps
Empty miles averaged 16.7% across the industry in 2024—meaning nearly one in six miles driven generates zero revenue.¹ Load planning is inconsistent. Some planners are excellent at sequencing loads and minimizing deadhead; others leave money on the table every day. Billing and settlements are manual. Driver pay calculations take hours. Invoice errors create disputes with brokers and shippers that delay payment. Maintenance schedules are reactive rather than predictive, leading to unexpected breakdowns and downtime. You know these inefficiencies exist, but without clear process documentation and consistent execution, improvement feels impossible.
Margin Pressure and Cost Management
Fuel costs remain volatile. Insurance premiums jumped 3% in 2024 after a 12.5% spike the prior year, hitting a record high of $0.102 per mile.¹ Truck and trailer lease payments rose 8.3%, reaching $0.39 per mile.⁵ Driver wage pressures persist—you need to pay competitively to attract and retain talent, but raising wages squeezes already thin margins. Equipment costs are high due to tariffs on imported parts and trucks. You’re managing expenses line by line, but freight rates haven’t recovered enough to offset these increases. The operating ratio that used to sit at 93% now hovers at 96% or worse. At some point, cost-cutting alone won’t save you.
Where leaders get stuck
Common Friction Points in the Logistics & Transportation Industry
You don’t know why some planners perform better than others.
Your top load planner consistently hits 12% empty miles while others average 18%. One dispatcher keeps drivers happy and retention is strong; another has constant turnover. You suspect it’s about relationships, communication style, or problem-solving ability—but you can’t see the informal networks and knowledge flows that make the difference. When your best performers leave or retire, their expertise walks out the door, and you realize how much institutional knowledge was never documented.
Dispatch and driver communication breaks down.
Drivers say dispatch doesn’t communicate load changes clearly. Dispatchers say drivers don’t respond promptly or follow instructions. Loads get missed. Appointments are late. Customers complain. The org chart shows clear reporting lines, but in practice, communication is fragmented. Some drivers text their favorite dispatcher directly. Others call the office and talk to whoever answers. There’s no standard process, and when things go wrong, finger-pointing starts instead of problem-solving.
Back-office inefficiency causes snowball cash flow problems.
Your accounting team is overwhelmed with invoices, driver settlements, and payment reconciliation. Brokers dispute charges due to missing or incorrect documentation. Payment cycles extend to 45 or 60 days. Driver pay is delayed because settlement calculations are manual and time-consuming. Factoring companies exist, but high fees reduce margins. The root problem is inefficient billing and settlement processes, not financing.
Technology rollouts fail because adoption is low.
You bought the TMS. You paid for training. You sent the announcement emails. Six months later, usage is at 40%, and people are working around the system rather than with it. The vendor says the platform is working fine. Your IT team says training was provided. But if dispatchers, drivers, and back-office staff aren’t using the tools, your investment isn’t delivering ROI. The people side of technology implementation—change management, influencer engagement, workflow redesign—was an afterthought, and now you’re stuck.
Rooted solutions
How Rooted Helps Leaders in the Logistics & Transportation Industry
Sustainable carrier performance requires workforce capability and organizational structure that supports growth. This involves analyzing turnover root causes, designing retention strategies, and developing succession plans. Additionally, redesigning workflows for efficiency, driving TMS adoption, and mapping critical operational networks are essential for improved performance.
Organizational Network Analysis (ONA)
Map informal networks that drive operational performance. Identify critical knowledge holders, reveal coordination gaps, and protect institutional knowledge before key people leave.
Business Process Engineering (BPE)
Redesign operational workflows for efficiency. Standardize planning, streamline billing, optimize dispatch, and implement preventive maintenance that reduces costs.
Organizational Change Management (OCM)
Drive technology and process adoption across operations. Engage influencers, deliver role-specific training, and manage transitions without disrupting service.
Organizational Development & Effectiveness (ODE)
Build driver retention and leadership capability. Diagnose turnover causes, design practical retention strategies, and create succession plans for critical roles.
Common Scenarios
How Rooted Helps Leaders in the Logistics & Transportation Industry
Common Cases and Realistic Scenarios with Tangible Outcomes
TMS investment not delivering expected efficiency gains
A regional carrier with 80 trucks invested $180K in a modern TMS designed to streamline dispatch, load planning, and customer visibility. Eight months post-launch, adoption among dispatchers was at 30%. Senior dispatchers said it was “too slow” and “more complicated than the old system.” The CEO was frustrated—the technology works, so why aren’t people using it? We conducted discovery interviews with dispatchers and organizational network analysis of the operations team. We learned that the most influential dispatchers weren’t involved in system selection and the workflow didn’t match how they actually work. Training was too generic and didn’t address their specific concerns. We brought key dispatchers into a working group to customize workflows, created role-specific quick-start guides focused on efficiency gains, identified early adopters as champions, and implemented a phased adoption plan with ongoing support. Within five months, adoption rose to 82%, dispatch efficiency improved by 15%, and customer visibility complaints dropped by 60%.
High driver turnover eroding margins and service quality
A 60-truck carrier struggled with 85% annual driver turnover—well above industry averages. Recruiting costs reached $150K per year, and constant turnover created safety risks and service inconsistencies. Exit interviews provided generic feedback, but leadership didn’t know the root cause. We conducted confidential interviews with current drivers and recent departures. We learned that pay was competitive, but home-time promises weren’t kept, communication from dispatch was inconsistent, and drivers felt disrespected when they raised concerns. We redesigned dispatch workflows to improve communication consistency, created home-time guidelines that were realistic and enforceable, implemented driver feedback sessions with leadership, and trained dispatchers on communication and conflict resolution. Within 12 months, turnover dropped to 55%, recruiting costs declined by $90K, safety scores improved, and customer satisfaction increased.
Empty miles above industry benchmarks without clear cause
A mid-market trucking company averaged 19% empty miles—significantly above industry benchmarks. Leadership knew this was costing money but didn’t understand why some planners performed better than others. We shadowed load planners, mapped their decision-making process, and analyzed load data. We found that top performers used specific sequencing strategies, prioritized certain lanes, and maintained relationships with brokers who offered backhauls. Others lacked these skills and strategies. We documented best practices, created a standardized load planning process, built lane analysis tools that highlighted profitable backhaul opportunities, and provided targeted training. After implementation, empty miles dropped to 13%, revenue per truck increased by $8,000 annually, and planning performance became consistent across the team.
Let’s Talk About What’s Next
If you’re leading a regional or mid-market transportation company and dealing with margin pressure, driver retention challenges, technology adoption struggles, or operational inefficiency, Rooted can help. We’re not here to sell you a transformation roadmap that sits on a shelf. We’re here to understand your specific challenges and design solutions that work for your operation.
Sources
- American Transportation Research Institute. (2025). New ATRI Report Shows Trucking Profitability Severely Squeezed by High Costs, Low Rates. https://truckingresearch.org/2025/07/new-atri-report-shows-trucking-profitability-severly-squeezed-by-high-costs-low-rates/
- American Transportation Research Institute. (2025). An Analysis of the Operational Costs of Trucking: 2025 Update. https://www.truckinginfo.com/10243311/fleet-margins-fall-as-trucking-costs-set-new-records-in-atris-2025-report
- Anderson Trucking Service. (2025). Is the Truck Driver Shortage Impacting Shipping Capacity in 2025? https://www.atsinc.com/blog/highway/how-truck-driver-shortage-is-impacting-shipping-capacity
- TruckClub. (2025). The Driver Shortage in Trucking: Causes, Impacts, and Solutions for 2025. https://www.truckclub.com/trucking-news/driver-shortage-in-trucking
- Cottingham Butler. (2025). 2025 Trucking Operational Costs and Industry Trends: Key Takeaways from ATRI’s Latest Report. https://www.cottinghambutler.com/post/2025-trucking-operational-costs-and-industry-trends-key-takeaways-from-atri-s-latest-report
- National Transportation Institute. (2025). Driver Market Forecast – 2025. https://driverwages.com/driver-market-forecast-2024-full-forecast-nti/
