Stay Metrics a company that studies driver retention for motor carrier clients has been researching satisfaction rates on how drivers are paid. They have found that it’s not what you pay driver but how you pay them. When drivers feel they have input, they are more likely to be satisfied with what they are paid. Also, Stay Metrics found that drivers feel a sense of fairness when paid by percentage of load revenue as opposed to being paid by mile or hour. With driver retention issues it’s crucial to find ways to satisfy our drivers.
On the road, multiple trucks are blending in with their lack of strategic branding. What turns your head on the road? 1. Good Paint Job and 2. A flashy billboard. Most trucking companies do not want to spend the money on a graphic and artistic designer or a good paint job but it’s truly an investment. Long Haul a trucking company based in Minnesota revamped their look and now people know their brand message and their look. Don’t underestimate the fact that trucks are just mobile billboards. Long Haul Trucking estimates 80% of new drivers are brought in by seeing their cool trucks that feature gunslingers, bulldogs, flames and patriotic red, white & blue motifs. They have branded themselves so well and whenever you see their trucks on the road you know who they are and what they represent.
Another company that has invested in smart branding is Quest Global from Georgia who updated their logo, website, company feel, all social media platforms and so on. They put their designs on all their trucks and they have also noted that it has helped them stand out and has raised driver recruitment. The goal is to stand out, to help people familiarize themselves with not only what you do but who you are, make them want to use your service. It is critical that your graphic and artistic vision sync with your companies message. Know that different designs and colors say completely different things and most likely you will be using those colors and designs for a long time so it should truly represent your company.
The annual shipper- carrier rate discussion has ended and it has gone very differently then last years. Although it was a bit more convoluted with rising carrier costs, the shippers have finally, yet arduously, accepted these rates. The price of shipping has gone up, one reason being driver shortage/retention rates which has finally led to raising drivers pay (which LoadSmart discussed in the following article). The rise in drivers pay has been taken into account by motor carriers who have altered their rates to make this change less impactful on themselves and putting it on shippers.
Motor Carrier Advice
Motor Carriers are concerned about alienating their big shippers and are strategically raising their rates.The new motor carrier strategy is “lower frequency of accepting shippers initial rates” Those acceptance rates are currently 90% carrier acceptance rates which are expected to drop to 85% in 2015. Motor Carriers are now saying no to shipping a load at 1.30 cents per mile when they can now get 1.75 cents a mile.
Shippers Who Should Worry?
Most affected area are spot rates.
If you are a larger shipper if it will be easier to negotiate prices but the worries are on small shippers who will most likely be taken advantage of.
For more information go to DC Velocity>>
The FMCSA’s Motor Carriers Safety Advisory Committee and their Medical Review Board will be discussing the affects of painkillers and amphetamines on truckers driving ability. The Motor Carrier Safety Advisory Committee will also hold another meeting to discuss possibly raising liability insurance for both carriers and brokers. They will also be discussing their failed cross borders pilot program with Mexican companies that ended last month.
The meeting are open to the public. The Medication discussion will take place Oct 27 and the rest on Oct 28 at the Hilton Alexandria Old Town in Alexandria Va., at 9-4:30pm in the Washington and Jefferson Rooms. Online comments are welcome until Oct 22 at the following link CCJ Digital>>