The driver shortage has gotten worse with the shortage averaging out to over 214,000 truck drivers. With long haul making up 38% of the $840 billion of the U.S Frieght Market, drivers are crucial. The turnover rate of a truck driver is high for multiple reasons but a fundamental issue is the pay. With trucking companies like Xpress turning down 5,000 to 8,000 orders a week from lack of truck drivers, they finally figured out supply and demand and have raised their driver wages. A truck driver of theirs, who had worked for 17 years is finally getting a raise, planning to make over $60,000 when he would have prior to the raise made $48,000-$55,000. Xpress is not the only trucking company raising driver wages, others include Con-way (who had said they’d be the only ones to raise their wages *cough cough wrong), Celadon group and more. America’s Commercial Transportation Research Co expects a 6% increase in average driver wages this year. For more info go to IBJ>>
With a driver shortage like none we’ve ever seen before, finally the transportation industry is starting to get smarter. To keep our supply of truckers equivalent to its demand by shippers we have finally started listening to basic supply and demand and compensate our truckers better. Con-Way will hopefully lead the pack.
The article by trucking info.com states “The carrier has been evaluating and implementing changes in its compensation program to reflect the evolving market conditions and ensure competitive pay structures for its drivers, accordign to Con-way.”
The question is why the trucking industry keeps fighting against the evolving market conditions? Con-Way also went on to say they do not believe that others public LTL carriers will follow by example. With the shortage of truckers that will presumably continue to be a problem in the future. We must find a more competitive way to keep these truckers in the transportation sector.