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."
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Nobody pays 50 cents/mile unless your dad owns the business. When you get near 40 cents, they start cutting your miles. And the company pays for the fuel. Problem is, somedays, you get no miles, and NO PAY!
Nobody pays 50 cents/mile unless your dad owns the business. When you get near 40 cents, they start cutting your miles. And the company pays for the fuel. Problem is, somedays, you get no miles, and NO PAY!
I work for Schneider National, and what you just described simply isn't true. Truckers start at least $35,000 a year, and if they're able to get a dedicated route, they can easily make more and be home every weekend.
Eating garbage for weeks? Truckers have full access to area truck stops and Road America places which offer full dine-in services and public facilities. Also when you're young and just want to make some quick cash, who cares what your eating? I've hired drivers fresh out of high school who signed up for team loads with their girlfriends and the two of them made over $100,000 cash each year. If you do this for a few years that's a house & a car payment squared away.
What's hurting the trucking industry is the DOT rules and regulations. A lof of applicants have at least one or two speeding tickets which can kill an application. You have to have a near spotless driving record in order to be a truck driver. But there's a lot of money in trucking though, it's probably the most recession-proof job out there.
Come on Qout,,,, what do they pay when the truck is not moving ?????????afraid to answer??? the answer is ZERO!
The fuel is already included with the contracted rate.
Oh really, what does the orange pumkin pay while the truck is not moving or held up at the dock?
They ARE being payed. The problem is, is that truckers have to go through a detailed application process. Even a speeding ticket from 10 years ago will void an application. That's the problem, the background checks are too rigid.
If they're held up at the dock, the carrier receives detention charges, so it's in the shipper's best interest to load the driver as fast as possible. The driver gets paid regardless. Rarely are they "held up" unless they're in Southern California or in the middle of inclement weather & then the load is rescheduled.
That's exactly what it is...
These greedy trucking companies are paying crap.
They couldn't pay me $180,000 a year to live in a truck, driving on ice, traffic, living in grungy hole in the wall truck stops...A dangerous and nasty job...You can't have a life unless you take your wife and kids with you. Even then, it's no life.
Trucking? No thanks...It pays crap...
I would only consider it for 200k plus per year, and then I'd only do it for 2 years or so.
Life is too short to live in a stinking truck.
My mother works for Schneider National too (about 20 years). She was making about $65,000 per year and is down to the $40,000 range now. All that time without a serious accident and she’s being pushed out before retirement.
I see you refuse to answer the question ,,, the answer is NOTHING! you can sit all weekend and not get paid. And it happens regularly. While your at it, please advise how many hours a typical driver drives a DAY, lets see,, they changed the rules some was it 10 or 11 plus a few extra not driving!
Sounds normal
Shippers are leveraging the heck out of those companies, all the while driving profits out of the system. I know this because I'm one of the shippers driving the hard bargain.
I am a mature citizen. 57. I work part time currently. Can't find my encore career. Baby Boomer malady. I see Schneider likes to hire people like me. Spotless record. No dope. No booze. No felonies. Masters Degree.Long successful career.
But, I read horror stories about company training. I need my CDL. But, I see people saying they throw you out and present you with a bill for the balance of the school. Are these people just illiterate idiots or is this common? This would be a major move for me.
Sorry Dude, but that's complete B.S. I signed on with Werner 2 years ago, and when the training was complete, they paid me $150 a week - take home. I told them to stick it you-know-where.
And what I've read here from Piper is all true, I'm sorry to say.
I did answer it. They still get paid. If it's a dedicated lane, that driver is on salary, not per-miles. And sitting all weekend is rare for most drivers. Even then, the consignee (delivery point) reimburses the carrier.
While your at it, please advise how many hours a typical driver drives a DAY, lets see,, they changed the rules some was it 10 or 11 plus a few extra not driving
It's 14 hours per day and they can use the remaining 10 hours however they want.
That's crap wage. Illegal aliens in Cal earn more than that. That's early 1990s wages man. lol
Time to lay some new train tracks?
I don't know about the other trucking companies, but Schneider pays for your training 100%. But they do want you to stay for a couple of years. If you move to another carrier (like after six months) then they'll stick you with the bill for training.
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