Is Paying Truckers by the Mile Contributing to the Driver Shortage?

Although the drivers shortage is currently estimated at around 35,000-40,000, it is predicted to reach 240,000 drivers by 2022. Although there are several factors that contribute to the shortage, an interesting one might be how truckers are paid. Not necessarily how much, but how.

According to Larry Kahaner from the LA Times being paid by the mile and not by the hour results in drivers making no money when sitting in traffic or waiting at warehouses, it also promotes speeding in order to make money.  A driver stated “Because payment is by the mile, warehousers and others don’t respect drivers’ time. Any inefficiency in their operation — and even from my own carrier — is soaked up by the driver at no cost to anyone else.”

A drivers opinion on how their carrier values them definitely impacts their performance levels and the turnover rate. Dupre logistics who started paying their drivers by the hour for safety reasons stated“The company realized that even though it was following the rules governing how many hours a trucker could be on the road, its drivers were fatigued, and therefore accident prone.” 

This resulted in the company crash rate plummeting, they attract experienced and reliable drivers and their turnover rate is 17% in an industry where the rate is normally around 90%. Thoughts?

For more information go to LA Times>>

For more on us go to LoadSmart.com>> 

HDT’s Top 20 Trucking Products to Buy in 2015

HDT has come out with their list of top 20 products for 2015. LoadSmart.com will give you a sneak peak but for the full list and details go to HDT>>

1. Alcoa Ultra ONE Wheel with MagnaForce alloy

2. Allison Transmission FuelSense

3. Aperia Technologies Halo Tire Inflator

4. Clean Energy NGV Easy Bay

5. Detroit Assurance Safety Systems

6. Eaton Procision Transmission

7. Fontaine Fifth Wheel Dual Assist Camera System

8. Goodyear Fuel Max LHD G505D Tire

 

Bigger Trucks Might Be the Answer For Efficiency AND Safety

With America’s infrastructure deteriorating both the president and the senate are scrambling to find solutions, perhaps the solution might be bigger trucks. The idea is to increase the less than truckload to 33 feet from its current 28 feet without increasing the trailer weight limits.

It was recently found that twin 33 foot trailers are actually a lot safer than our standard 28 foot trailers. This would also improve fuel efficiency, reduce emissions, and would have less trucks on the road. Possibly shrinking the driver shortage gap.


Daily Caller>>

 

Motor Carriers: Here’s How To Pay Your Drivers and Keep Your Drivers

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.


CCJ>>

 

Need Truckers? How to Optimize the Hiring Process

American Trucking Association (ATA) statistics have shown that the driver retention rate for the first quarter was 92% for large truckload fleets and 78% for smaller carriers. Finding the right truckers for your fleets can be time consuming and has to be done constantly with those retention rates. Finding the right technological software and data can optimize how quick and who you find to be prospective employees. Using automated recruitment tools can bring in the most qualified drivers with 30-40% less processing time.

Which Workflow Management Tools and Analytics to use

HireRight-

automates trucker recruitment process, has great background screens.

TenStreet-

automates trucker recruitment process, collects application data and has a digitized signature feature.

SHIPS recruitment workflow-

automates trucker recruitment process, this software helps create & streamline the correct recruitment process for specific carrier.

Maverick’s pre-employment driver qualification tool-

automates trucker recruitment process, helpful for just that, qualification assessment. An extra plus, it is also helpful post-hire with education training programs.

McLead Software’s HirePower-

automates trucker recruitment process- clear steps.

TMW- synergize driver recruitment-

automates trucker recruitment process, online application forms stored with all other required document in a secure data warehouse that can be accessed by fleets.

Collecting Data and the importance of behavioral assessments

Trucking companies using these automated recruitment systems also allow the companies to collect data for future recruitments to see what type of truckers last and are safe. Finding better ways to access the right truckers with data is crucial and its been found that it is more crucial to collect data on current truckers and those that have quit.

We have a lot of assessments being done in the recruitment process of technical skills but how a trucker performs in accordance with safety and retention rates is really only 20% technical and 80% behavioral. Behavioral assessment are extremely undervalued and can most likely help  your retention rate. A company that works on behavioral assessment is JobBehavior

JoBehavior-

recommends fleets do a behavior assessment at beginning of recruitment (12 minute long survey). The candidate is then scored from 1 to 5 stars.

For more information go to Trucking Info>>

FMCSA regulation plans for 2015

In one year FMCSA will propose five rules to alter regulations in the trucking industry.This month alone the FMCSA will propose an increase in liability insurance for motor carriers. This is going to be a year of change, let’s see what’s coming.

Changes in the Trucking Industry

  • Agency’s safety fitness determination carriers scoring plan.
  • Speed Limiters on all Class 8’s
  • CDL Drug and Alcohol Clearinghouse- a data with all truck drivers that failed or refused a drug or alcohol test. Also mandating motor carriers to see the data before hiring.
  • Mandating e-log devices
  • Forbid coercion between truck drivers
  • Make it easier for military members to get a CDL. (in the works)

For more info go to CCJ Digital>>

Investors Looking for the Next Big Start Up Logistic Company

The trucking industry in the US brings in over $600 Billion in gross freight revenue and employes 6.8 million people. With the technological advances that are occurring exponentially the consumers are demanding their e-commerce goods to arrive faster from shippers. With the rise in demand of e-commerce goods, shippers are looking for more efficient ways of send their loads. With this being common knowledge, start up logistic companies have been popping up and although investors have been investing, they seem to believe the next big logistics start up company hasn’t arrived yet, with their investments being a bit reserved. There are some companies with backers that are popping up with potential like Shippo, Cargomatic, Traansmission, OneMorePallet, ShipHawk, and Peloton. For more info on these companies go to Tech Crunch>> 

The future of Distribution Centers w/ Robotization

According to EFT in about ten years, nine out of ten distribution centers will be obsolete. Although SmartLoad does believe in a lot of the technological advances we do not think distribution centers will become irrelevant. Lets discuss the technological advances and the results that EFT believes might cause the dismissal of distribution centers.

Technological advances

Increase demand in e-commerce will change the logistics handling and will require technological and management change for distribution centers. Fun fact in the next ten year the packaging density will increase five to ten.

The technological advances that will disrupt the future of logistics are auto-pilot trucks of the future, TEN-T, and robots in warehouses.

Predictions for distribution centers in the Future

To us, all of these things seem to promote more distribution centers however EFT’s hypothesis is that distribution center’s will be put at strategic points, that they will be larger and that in ten years it will be managed by robots. In the end neither EFT or SmartLoad knows what will come in the future. What do you guys think will come of distribution centers in the future? It is clear that technological will demand better structure of logistics but will there be more distribution centers or will we just start merging? EFT>>