Posted on 02/11/2008 5:33:39 PM PST by 2ndDivisionVet
A conspicuous shortage of truck drivers is creating a Catch-22 of sorts for the trucking industry, according to recent comments by carrier executives.
On the one hand, a lack of drivers is restricting the ability of trucking companies to expand and meet current freight volumes. Yet that same lack of drivers results in tight capacity, which is allowing fleets in many cases to get higher rates from customers and reject unprofitable business.
"Our results for the quarter were assisted by a favorable relationship between freight demand and truckload capacity," said Steve Russell, chairman & CEO of Indianapolis-based truckload carrier Celadon Group.
"We believe capacity growth in our industry continues to be constrained by a shortage of qualified drivers," he continued. "Assuming a continuation of the current freight environment, where growth in freight demand has exceeded increases in truckload capacity, we believe there will be opportunities to continue to raise freight rates faster than cost increases. Consequently, we continue to be confident in our ability to move to a 90% operating ratio or better."
"A solid U.S. economy and a favorable relationship between shipping demand and truckload capacity contributed to a 5.9% increase in our average revenue per loaded mile," noted Kevin Knight, chairman & CEO of Phoenix-based Knight Transportation.
"Solid productivity, improved fuel surcharge collection, and constant focus on expense control more than overcame cost increases relating to higher prices of revenue equipment, higher diesel fuel prices, declining fuel efficiency due to emissions control regulations, and increases in driver compensation," he added.
"Customer demand for our services continued to be strong," said Randolph "Randy" Marten, chairman and president of Mondovi, WI-based refrigerated carrier Marten Transport. "The combination of solid freight demand with limited industry-wide capacity and strong freight selection by our sales and operations team contributed to a 6.6% increase in our average freight revenue per total mile."
Still, the growing lack of drivers is causing fleets a variety of headaches - especially in terms of the bottom-line impact.
"The limited availability of experienced drivers continues to challenge the trucking industry," said Russ Gerdin, chairman & CEO of Coralville, IA-based Heartland Express. "We recently announced a driver pay increasa result our most senior and experienced company drivers will be earning 50 cents per mile while our owner-operators will be earning a base rate of 95 cents per mile by the end of 2006."
Marten Transport reached even deeper into its wallet to try and shore up its driver base by making a big equipment purchase at the end of 2005.
"After evaluating our expectations for customer demand, the continued attrition of owner-operators from our industry and our ability to attract and retain company drivers, we decided to take delivery of 246 tractors during the fourth quarter last year, more than half of the increase for the entire year," said Randy Marten. "But we believe that continuing to increase our capacity is important to major customers, and we wanted to make sure that we were prepared to grow with our customers in 2006."
"The driver recruiting and retention market remains more challenging than ever," said Clarence Werner, chairman, president & CEO of Omaha, NE-based Werner Enterprises. "The supply of qualified truck drivers continues to be constrained due to alternative jobs to truck driving that are available in today's economy. Yet we believe that a solid freight shipping market.. combined with extremely tight truck capacity is [maintaining] a strong freight market."
For more information on this publication, or to subscribe to the print edition, visit http://www.fleetowner.com.
So, having never driven a truck, you think driving is a great job? why don't you quit and start driving? you could get rich!
If you're a young couple in love wanting to make some quick cash, what better opportunity is there? I've hired team drivers, girlfriend/boyfriend in their early 20s who worked for several years nonstop and then they have the money to buy a home (outright) and buy a car (outright). It's better than living paycheck-to-paycheck.
Like I said, to live in a truck, and drive in all that nasty, dangerous weather, with all the clowns on the road, they'd have to pay me 200k per year.
If you can get a regional lane or a dedicated route, you won't have to deal with the weather or big-city traffic. Especially in the South or Midwest (Iowa, Nebraska, Missouri) the scenery is breathtaking.
And let me tell ya, truck stops are low life and criminal hangouts. That's why the cops/feds have them under surveillance half the time. Drugs, prostitutes, interstate commerce fraud, theft, bums, transients, those on the run... etc, etc.
And the streets in the neighborhood don't have this either? ROFL. Today's truck stops aren't like they were in the 70s. Like the Road America truck stops have full restaurants and convenience stores with sleeping rooms.
Do you enjoy making up facts as you go along? Do you get some sort of kick out of that?
You don’t know what the hell you’re talking about. You’re in fairyland.
It’s tough out there for a guy like myself. I have been in radio 39 years. Still do my weekend show. However, radio is like a lot of other “mature” industries. It’s a river of blood. The chances of my landing a new full time job are slim. Meanwhile, I have a wife and two teenage boys. At 57 few “entry level” positions are in my reach. It’s humbling. Never thought I’d be in this position. But, a lot of us “boomers” find ourselves here. The idea of driving is appealing. Yes, I’ve read the stories of the downside. But, I appreciate Schneider teaming up with AARP and welcoming people such as myself. Listen. I don’t have other “skills.” B.S. and M.A. in Broadcast Journalism and 39 years behind a microphone don’t count for much to a 38 year old HR trainee.
Probably due to the rising price of cocaine...
Oh yes, sitting on your ass all day, eating mcdonalds for years, thats got to be good for you...
Being a trucker today is probably one of the worst jobs one could have. Especially if your married, and or have kids.
The pay sucks, the hours suck, and the job is hard and dangerous...
If I were single, I might consider it for 200k per year...I'd do it for 2 years and quit...Before I lost my mind.
Amnesty agenda propaganda
LOL.. implying that everyone that drives trucks eats McDonalds?
These same people that eat McDonalds in their trucks would be on their asses eating McDonalds on their couches when they weren’t at their 9-5 job.
Boy are there some real know-nothings posting tonight or what.
I went through the video game driver training simulation! I sat in with some drivers for their road tests. But no, I can't get my CDL. Two auto accidents, a suspension, and dozens of speeding tickets will do that to you ;-)
Sounds like they’re laying the groundwork to whine about how we need mexican truckers imported, since Americans won’t do it... at least not on their terms...
Well all of these guys are whining about how horrible it is.. If you put an illegal into the cab they would be bitching about that too.
Some people just like to bitch about anything.
And many truck drivers would tell you sitting in an office is one of the worst jobs. Believe it or not, different people have different thoughts on what is an ideal job.
If we had any brains, we wouldn’t have abandond our rail lines. We should have built more.
Dude, My heart goes out to you. Good luck. I tried OTR driving and I got to tell you, it sucks. Say good bye to your family. It takes years of driving to get one of the dedicated runs this office person is talking about. Here’s a hint. Call UPS and see if they need drivers. THEY HAVE A WAITING LIST!
Night all.
Have you driven OTR? I have and the one thing on your mind is to stop quick and fast and get back on the road. Please advise on the fine dining at FlyingJ
Referring to fuel or Diesel as "gas" will get you ragged on by an old school trucker. ;-)
Thank you. The life sucks. and on that note, Night all also.
You bet. You can spot the recruiters and those that don't drive in a minute.
Lets put it this way, if it paid well, and was a decent job, they wouldn't be hurting for drivers as they have been for some YEARS now.
Illegals, the barely legal and the no-life down and outers are going to take over the entire industry. It's been happening for a long time, due to the terrible pay and working conditions.
Oh, and good night.
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