For years, US shippers and others have almost continuously been told the country is faced with a huge truck driver shortage.
Supply Chain Digest Says...
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| Ironically, the rising wages may actually be contributing to the problem. |
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While there is a level of debate in some quarters on that point, US carriers seem to be speaking with their wallets, with continued increases in driver pay.
Just recently, for example, truckload carrier Maverick Transportation increased pay by four cents per mile for new drivers.. That was not only a wage bump of 6-7%, it took annual earnings for a new drivers to a quit respectable $80,000 per year, as carriers are again bumping pay to hire and retain drivers after another round of raises earlier in the year, as carriers fiercly compete for not enough drivers.
Maverick is hardly the only the only carrier raising driver pay.
In late May, Roehl Transport, a Wisconsin-based trucking company with 2,300 drivers, enacted its second pay increase of this year, which together should increase driver pay at the company about $4,000 to $6,000 a year, representing an increase of 9% to 11%.
In April, carrier CR England, announced its third pay hike in the last three years, increasing its drivers' pay by more than 50% compared to 2018.
And the competition for drivers is leading not only to per mile rate increases, but also sign-on bonuses and guaranteed minimum weekly pay.
But the pay hikes seem to have had only a modest impact. The lack of new drivers entering the market is keeping the number of trucking job almost flat for 2021, despite a great demand for drivers by both carriers and private fleets.
And as driver wages continue to rise, ultimately shippers will have to foot the bill.
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 "Our customers have been very understanding that it's necessary to raise rates," Tim Norlin, vice president of driver employment at Roehl, told CNN. "I could literally hire 500 to 1,000 more drivers - we have the business offerings from customers to keep them busy.
Lifestyle issues continue to be a major factor in a lack of new long haul drivers or the loss of current ones. A strong current market for construction labor, where workers get to be home every night, is peeling away many former or potential drivers.
And ironically, the rising wages may actually be contributing to the problem. Some drivers are using the higher rate per miles to reduce the total number of loads they accept.
What is your take on driver pay? Will shippers fot the bill. Let us know your at the Feedback section below.
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Mike Nichols
President , M J Nichols Company, Inc. |
Posted on: Jun, 09 2021 |
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| Every carrier mentioned in your article has annual turnover rates of 100 percent or even more as does virtually all of the truckload segment. Wages and undesirable working conditions play a big role but there's more to the problem. The big carriers have all but abandoned the idea of hiring and retaining well-seasoned, safe and competent drivers. Instead, they "train" rookies and hope they stay around for a few months before the next class graduates. I've been an owner operator for 30 years with never an accident!! I would learn a new vocation before I would subject myself to the working conditions they offer regardless of the pay. And frankly, $80K a year falls short. Would you live and work 70 hours a week in a room about the size of your bathroom constantly being monitored and nannied and in many cases watched by an Orwellian camera pointed at your face. The hardships of which these mega carriers complain are very well deserved. Unfortunately, the inept political structure in this country is set to deliver them a whole new demographic to exploit; 18-20 year olds. Safety, competency and now even maturity be damned. |
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