August 2021
What’s Going on with the Truck Driver Shortage?
And How Do I Handle It?
It seems like the idea of a truck driver shortage has always been with us. Today, however, the topic is hotter than ever. There’s some good news buried among some very misleading information out there, though. In fact, many experts argue that there isn’t actually a truck driver shortage at all. So, nothing to worry about then?
Not exactly.
Those saying there isn’t a trucker shortage aren’t saying there is no problem. They’re essentially calling out inaccurate language. There are plenty of truckers out there, but there is a huge retention problem in the industry. According to them, what we’re looking at is a retention crisis - not a shortage.
Regardless of the language used, one thing is certain. Truckers play an integral role in our industry, and not having enough of them on the road is a major problem.
The Challenges of the Trucking Industry
Nobody can argue that trucking is an easy job. The hours worked are extremely long, and they’re typically far from home. The road is a dangerous place to earn a living, too, with motor vehicle operators being “10 times more likely to be killed on the job and nearly 9 times more likely to be injured on the job” when compared to average workers. There is also all of the expenses truck drivers face, from fuel to truck maintenance, to consider.
Does this mean that no one wants to be a trucker anymore, hence the shortage of drivers? No, it doesn’t. In fact, the American Association of Motor Vehicle Administrators says state governments issue more than 450,000 new commercial driver’s licenses every year. Not every driver issued a license enters the trucking industry, of course, but a large number of them do. So - what’s happening to our truckers?
Turnover in the Trucking Industry Is Enormous
The difficulties of long-haul trucking mentioned above may not keep new drivers out of the industry entirely. They do lead to a huge amount of turnover in the industry, though. And that doesn’t necessarily mean the drivers are getting out of trucking entirely. It might mean that they’re seeking out what they see as greener pastures, though.
Some segments of the industry are hit harder by the truck driver shortage, if you want to use that term, than others. In fact, truckload carriers, responsible for transporting trailer-size shipments over long distances, see an annual turnover rate of a staggering 95%. Many of those drivers continue driving, but opt for positions with companies like Walmart and FedEx. These outfits are able to offer more regular routes - as well as more time at home.
The Answer Isn’t As Simple As Better Pay
You can solve some problems by throwing money at them, but keeping long-haul truckers on the road doesn’t appear to be one of them. Companies have definitely been trying this tactic - and sometimes wind up achieving the exact opposite outcome than the one they’re looking for. For some truckers, that increased pay isn’t an incentive to get out on the road more. It’s actually a benefit allowing them to spend more time off the road.
Truckers aren’t paid by the hour. They’re paid by the mile. So, if they’re able to earn more for each mile they travel, they’ll be inclined to drive fewer miles, earning that higher wage, and use the increased revenue to spend more time at home. With that in mind, another option might be to hire less experienced drivers at a lower rate, allowing for a bigger workforce. There’s issues with that, too.
New Talent in Logistics Isn’t Going to Trucking
With the huge turnover the trucking industry sees, it would require a lot of new hires to fill those positions. We know the licences are being issued, but the fact remains that many younger people aren’t entering logistics at the long-haul trucker level. Looking at truckers by age, the fact that only 20% are under 45 highlights the disparity. With 57% of truckers being over the age of 45, and 23% being over 55, the problem is pretty clear.
A contributing factor to all of this is the enormous role that ecommerce plays in our economy today. With retail giants shipping goods to front doors across the country and around the world, local routes and warehousing positions are easier and easier to come by. Again - more time at home, fewer hardships. Plus, it’s taking new drivers longer to get their licenses than it did prior to the pandemic. In New Jersey, it used to take two months. Today, that’s closer to six.
What This All Means for Our Industry
For importers and exporters like you, splitting hairs between terms like “shortage” and “retention issues” aren’t the central focus here. You need to know that your shipments are getting where they’re going, that they’re getting there safely, and that they’re getting there on time. That’s not impossible. There are still trucks on the road, and that’s not going to change.
What does have to change is the attention paid to who you’re working with, and the logistics around that. When drivers seem scarce, your business can’t just wait for the next truck to roll in. You need to have a network in place, and you need to keep your shipments moving. You also need to accomplish all that’s protecting your profits. That’s where a qualified logistics partner becomes invaluable.
Work with vetted, tried, and tested trucking partners.
At JF Moran, we understand the value of partnership. We know how much our partners rely on us for their trucking, warehousing, and logistic needs. That’s why we’ve put so much effort into building our own network of partners, including trucking companies. If you’re concerned about the implications of today’s trucking industry, or if you want to work with a partner you can trust to handle this critical piece of your business, get in touch today!.