Friday, August 22, 2014

Not In for the Long Haul

We have a major truck driver shortage.   Drivers are needed to keep our economy going.   Many truck drivers are quitting.   As truck drivers stop driving or retire, they are not being replaced by a younger crop.  

Below are excerpts from an article from Business Insiders that give an explanation of why:

Higher driving costs and falling pay have created a truck-driver shortage that's likely to worsen in the coming years. The American Trucking Associations (ATA) estimates the U.S. is short 30,000 truck drivers — a number expected to surge to 239,000 by 2022.

"Smaller 'owner/operator' firms are increasingly dropping by the wayside as the cost of operations and maintenance are simply becoming too expensive to stay in business," Paul Pittman, a planner at a North Carolina-based logisitcs company, told Business Insider by email.  So drivers are suddenly faced with the choice of leaving the profession entirely or moving to a larger company where wages are likely to be lower. 

"As controls continue to tighten, many of the existing drivers currently employed are turning to other areas of employment simply to get off the road and escape some of the regulations implemented to govern their operations," Pittman said.

To hang on, small operators are forced to cut corners. For Jeff, a driver who asked to be identified by only his first name, the pay isn't the biggest issue — it's the compromises some firms are making on driver compliance.

"When you're non-compliant as a driver you run the risk of fatigue and the risk of hurting other people," he said. "And as a driver it's my license on the line." Jeff said he was asked by multiple trucking companies to falsify his logs, but he refused to.
"I consider myself a safety-oriented driver, and I have found that is a bad thing," Jeff said. "Because since I got my CDL [commercial driver's license] in 2008, I have worked for about 10 different trucking companies. That doesn't look good because it looks like it is job hopping ... I'm sticking to my guns."

Time Away From Home

Another problem is lack of time spent at home. Todd Feucht of Wisconsin says drivers can expect to spend as little as 52 days at home a year. Feucht, who hauls oversize loads, averages about three to five weeks. Last year he was home 54 days, including his vacation days. "Back in the day you were treated like a knight, but now you're treated like a peon," Feucht says.
All of this helps explain why the turnover rate at large truckload carriers was 92% annualized in Q1, according to the ATA. Turnover refers to the rate at which drivers leave the industry and are replaced.

Getting Squeezed

Meanwhile, drivers with less experience or bargaining power get squeezed. Feucht has been driving trucks for 20 years and thinks trucking companies need to be more honest when recruiting.

There may finally be some movement on this front. Last month, Swift, one of the largest haulers in the U.S., announced it would refocus expenditures on better labor conditions for employees, including higher wages.
"After assessing the current and expected environment, we believe the best investment we can make at this time, for all of our stakeholders, is in our drivers," the firm said in its earnings release. "Our goal is to clear the path for our drivers by helping them overcome challenges, eliminate wait times and take home more money."

Moving forward,

Jeff Roach

No comments: