American Trucking Association warns of economic disruption as driver shortage balloons

[kscarbel2]

Owner/Driver / October 14, 2015

The US truck driver shortage is tipped to become significantly worse within 10 years and bring with it economic disruption unless steps are taken to address the issue.

A new report from the American Trucking Association (ATA) paints a bleak reality confronting US trucking operators and the broader economy due to a dearth of drivers.

It expects the shortage to peak at 47,500 by the end of the year – up from 38,000 in 2014 – and to balloon to more than 175,000 within the next 10 years.

"Looking ahead to 2016, if the economy picks up slightly, like we expect, the shortage could quickly jump by 26,000 to 73,500. If nothing changes in the trend line by 2024, the shortage could be as high as 174,500," the ATA’s report says.

"We are not saying that the shortage will reach that level; instead, this is more of a warning to the industry and the broader supply chain of what could happen if things don’t change.

"If the trend stays on course, there will likely be severe supply chain disruptions resulting in significant shipping delays, higher inventory carrying costs, and perhaps shortages at stores."

The report estimates the industry will need to hire a total of 890,000 new drivers over the next decade, or an average of 89,000 per year.

Most of those will be to replace retiring drivers, with the ATA saying they will account for 45 per cent of new hires. The second largest factor (33 per cent) will be due to industry growth.

Trucks are responsible for almost 70 per cent of all freight moved in the US, so the ATA says it is unlikely different transport modes could be used to offset the driver shortage.

SOLUTIONS TO THE SHORTAGE

The report recommends a number of measures to attract and retain drivers, including pay increases, more at-home time and better treatment from the supply chain.

"Compounding the already difficult lifestyle, drivers often complain of mistreatment at shipping and receiving facilities. Complaints range from restricting access to restrooms to having to wait extended periods of time before the trailer is loaded or unloaded," the ATA says.

"Improving the experience for drivers at drop-off and pickup locations would provide for a more attractive career choice. All companies in the supply chain, including trucking companies, shippers, and receivers, need to treat drivers with the respect that they deserve."

The report goes on to suggest a change to the age limit on people driving trucks across state borders.

"Interstate driving currently has an age minimum of 21. The 18-20 year old segment has the highest rate of unemployment of any age group, yet this is an entire segment that the industry cannot access," it says.

"Often, these individuals obtain employment in construction or the service industry as they can start their careers at a younger age."

Trucking also needs to do more to boost the number of women working in the industry. While females make up 47 per cent of the US workforce, the ATA says they comprise only 6 per cent of truck drivers.

It adds that autonomous trucks may in future be an effective means of addressing driver shortages, but has warned that driverless trucks on the highway are still many years away and companies "should not count on this being an option for some time".

A shortage of numbers is not the only problem, however, with companies reporting there is a lack of quality drivers to choose from.

"An important thing we learned in this analysis is that this isn’t strictly a numbers problem, it is a quality problem too," ATA chief economist Bob Costello says.

"Fleets consistently report receiving applications for open positions, but that many of those candidates do not meet the criteria to be hired. According our research, 88 percent of carriers said most applicants are not qualified."

The report says many companies are highly selective when it comes to hiring drivers and have strict conditions relating to driving history and experience.

[kscarbel2]

Truck drivers wanted. Pay: $73,000

CNN Money / October 9, 2015

America needs a lot more truck drivers.

There will be a shortage of nearly 50,000 truckers in the United States by the end of this year, according a new report by the American Trucking Associations (ATA). That's up from a shortage of 30,000 drivers just two years ago, and 20,000 drivers a decade ago.

American businesses need truck drivers to move goods around. And not having enough of them affects daily deliveries of everything from essentials like food and gas to supermarkets and gas stations to online Amazon orders to people's homes.

It's a job that cannot be shipped overseas and has the potential to drive the cost of goods higher and ultimately hurt the U.S. economy.

No wonder businesses are willing to pay up for it.

Trucker compensation has been going up 8% to 12% a year in recent years, according to Bob Costello, chief economist at the ATA. That's a lot higher than wages for the rest of Americans, which have barely budged recently.

The median annual wage for a trucker that works for a private fleet, such as a truck driver employed by Walmart, is $73,000, according to ATA.

The Labor Department pegs the median annual salary for all truck drivers at around $40,000.

But it isn't an easy job to fill.

There's 1.6 million truck drivers in America. Of those, about 750,000 are "for hire" truckers, meaning they work for a truck company that's hired by another company, such as a grocery chain, to deliver its product. These truckers are sometimes on the road for 10 days at a time before coming home, Costello says.

At a time when work-life balance issues such as paid leave and flexible schedules are gaining spotlight in the American economy, trucking companies are challenged to recruit and retain workers.

Add on an aging workforce and a lack of interest from young workers, and you've got a shortage.

The median age of truckers is 49, according to ATA. The median age for all American workers is about 42, according to Labor Department.

Costello admits that the industry is having the toughest time retaining young workers.

Trucking companies also have a tough time recruiting women, who have become a larger part of the workforce than in previous generations.

Women make up 47% of the total U.S. workforce, yet only 6% of all truck drivers are women, according data from the Labor Department and ATA.

To qualify, truckers have to be 21, they must a commercial trucking license and pass a background check and drug test. Those requirements haven't changed in years, experts say.

However, what's changed is that there are fewer people willing to be on the road for days at a time and put in the long hours that the truck-driving lifestyle demands.

"They're having a very difficult time being able to recruit or retain [young] drivers," says Charlie Myers, vice president of Trucker Path, an app for the trucking industry.

[kscarbel2]

Truck drivers could become an endangered species

Memphis Business Journal / October 12, 2015

With the U.S. facing a truck driver shortage, industry experts discussed the possibility of truck drivers becoming an endangered species at the The Journal of Commerce Group’s 2015 Inland Distribution Conference Oct. 8.

In its most recent report, the American Trucking Associations said the shortage of U.S. tractor trailer drivers has reached 48,000.

A journalist, who has been covering trucking for more than 30 years; a truck driver, who has been on the road for more than 35 years; and the CEO of TeamOne Logistics came together to discuss how the logistics industry can address the shortage at Inland 2015.

Allen Boyd, Wal-Mart Transportation Driver and America’s Road Team Captain, who has been on the road for 35 years with more than 3 million accident-free miles, said the industry needs to utilize the drivers who are already on the road by shortening their wait time at the dock.

“If we can figure out how to keep that driver moving, the [shortage] numbers aren’t that big of a deal,” he said.

Boyd said current truck drivers could be turning away from the profession out of frustration.

“If my wheels don’t turn, I don’t get paid,” Boyd said. “I got a call from a friend of mine just the other day who waited a day and a half on a load and he didn’t get paid nothing.”

Boyd said the industry needs to remember truck drivers are also dads, husbands and people who like to go home.

“If I’m sitting at the dock even four, five, six, seven hours I’m looking at that as taking away time with my family,” he said.

According to data from the U.S. Bureau of Labor Statistics, the number of U.S. truck drivers peaked in 2007, then fell 13.4 percent from 2007 to 2010. Since the recession, that number has slowly recovered, growing 2.5 percent in 2014.

Annual driver wages lag compared to the national average. Overall , truck drivers are paid just below $42,000 annually, according to U.S. Bureau of Labor Statistics data. The driver wage gap peaked in 2013 and narrowed to 11.2 percent in 2014.

Page Siplon, CEO, TeamOne Logistics, said the trucking industry is not doing the best with what is has in both veterans like Boyd and untapped millennials.

While the average pay is lower than the national average, the typical age of a truck driver is much higher than the national average.

Siplon said the industry is naive to think millennials are going to suddenly want to drive a truck.

“We need to put processes in place that fit the needs of millennials who grew up using technology,” he said. “If you hand them paper logs they’ll that’s what my grandfather used. Where’s the iPad app?”

William Cassidy, senior editor, Trucking, JOC.com, IHS Maritime & Trade, said a market flooded with unqualified drivers is also contributing to the shortage.

For example, Progressive Transportation, the asset-based arm of Dallas-based third-party logistics company TTS, receives 5,000 applications a month, but can only hire 100 of those people, he said.

“They don’t fit the qualifications set by that company, which are getting tighter all the time,” Cassidy said.

There are moves companies can make that integrate truck drivers into company culture and make them a more integral part of the supply chain, Siplon said.

Boyd said Wal-Mart has done an excellent job allowing drivers to communicate directly with customers and individual Walmart stores to address loading problems.

“Involving drivers in everyday business makes them feel like they are part of something bigger than themselves,” he said.

[RSD501]

In conversations with guys that run over the road, it seems like they are constantly crapped on. Weeks away from home, left without loads, waiting to unload, and then the pay blows to boot. Seems as though the issues are pretty obvious, that if you want guys to be in a truck, at work, make it worth their while. Big corporations are driven by profits and earnings, but they seem to forget that the same thing motivates the guy driving the truck too. Money talks.

[Dirtymilkman]

There's not just a truck driver shortage. There's a shortage of people that want to work.

[TeamsterGrrrl]

Provide decent pay and people want to work... The trucking industry's real problem is that they're taking drivers hostage to the freight, they get maybe a day's work running 500 miles then get stuck somewhere eating fast food and paying for a motel for two days before they get another load and a days work.

[fxfymn]

And on top of everything else we have a congress that is unwilling to pay for the roads we need to keep things moving. I cannot imagine how frustrating it must be for any trucker to have to move through the I-95 corridor from Richmond to Boston with the constant back ups and poor road conditions.

You could not pay me enough to do that on a regular basis.

[TeamsterGrrrl]

Especially when you're gettin' paid by the mile to sit in traffic jams, then have to sit a night in a dump of a truckstop when you run out of hours or are stuck waiting for a laod.

[gicknordon]

Many companies' just in time manufacturing styles aren't helping either. I know with my internship with Eaton this past summer, If a truck arrived a few hours early, they would make the driver wait until it was the designated drop off time to unload the truck. If the truck was late, the company was penalized.

[Marcel67]

It's horrible the current treatment to drivers. I run a small fleet of 8 reefers north south east coast and to Minnesota with produce. Indeed we push on to be on time but get shit on when we are early and when your late due to traffic they take $300 from your load!

I'm currently looking to hire drivers from Minnesota run east to NJ and back to Minnesota but can not grow because no one would like to drive any more. My start pay is at 42 per mile so it's not bad. The other thing is that equipment becomes unreliable all that EPA shit for after treadment is killing us. It brakes on Monday shop is full come back Friday your told. I'm telling you this country is going to hell in a handbasket they way we go! o and on top that the shippers are cutting rates because the fuel went down Duuuhhhh!! My trucks cost me more in insurance every year, more expensive to buy and to maintain and to keep drivers you need to pay them well. So where is my profit after all this!

[kscarbel2]

Truck Drivers in ‘Exceptionally Short Supply,’ Fed Says

Transport Topics / October 14, 2015

Truck drivers are reported to be in “exceptionally short supply” in some regions of the country, especially in the New York, St. Louis and Kansas City areas, the Federal Reserve said in a report.

Despite the shortage of drivers, sturdy demand for trucking services was noted in the Atlanta and Dallas districts, the Fed said in its Beige Book report released Oct. 14. The survey is based on reports gathered by regional Fed banks to give an anecdotal picture of the economy.

The overall economy continued to expand across most sectors and regions of the country from mid-August through early October, according to the Fed.

Contacts in trucking and other modes of transportation reported an ongoing shortage of qualified operators and technicians in the St. Louis region, according to the report. The Kansas City district reported it was experiencing a shortage of skilled technicians as well as truck drivers.

In the Richmond district, an executive at a national trucking firm headquartered in the region reported, “Demand was a little softer because their customers' inventory levels were high.” A seasonal pickup is expected to begin in the next few weeks, the executive said.

In the Atlanta region, trucking companies reported healthy demand, mostly attributed to growth in e-commerce. However, flatbed volume —especially steel shipments —showed some slowing in growth.

Rail contacts in the Atlanta region told the Fed total rail carload volume declined slightly due to year-over-year, double-digit decreases in shipments of coal, iron and steel scrap, and metals. District port contacts reported strong demand across all types of cargo, according to the report.

The Chicago district reported the heavy-duty truck, auto and aerospace industries continued to experience solid gains, and most other industries saw limited growth.

Dallas trucking volumes rose, and one contact told the regional fed it had added capacity even as rail cargo volumes declined, especially in shipments of petroleum products and nonmetallic metals, including sand used in drilling.

The Fed releases its Beige Book report eight times a year. The report, which covered Aug. 24-Oct 4, was prepared by the Federal Reserve Bank of New York.