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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They're all true. But it goes beyond training - way beyond. Don't do it dude. You'll regret it - big time.
And just how many years of OTR before you can get a dedicated run??? and 14 hr days.... ya, thats gonna attract a lot of good people ...NOT! PS, I have a class A w/all endorsments, can I start tomorrow with a dedicated run?
ROFL. That's because you were working for a mom-and-pop outfit. Step up to the Big Leagues with JB Hunt or Swift and you'd be making some big cash.
That’s complete and total nonsense.
Horse doodles. How many other jobs start off at $35,000 a year? When you look at it, $35,000 is a lot of money. And that's just a ballpark estimate. Today's drivers can start off with way more than that if they're really into the business and not BSing around.
And how many non trucking companies out there charge their employees for training?.............NONE
I’ll bet you’re a recruiter. You sound just like one.
I’m a supervisor at a warehousing complex. Our Jockey drivers, start out at more than $30k a year, some make more than $50k w/ some overtime.
No it's not. It's the truth. I WISH it were nonsense.
That I don't know. Actually, I just have an outline of the industry and no concrete knowledge as I work in logistics (freight planning) and not the trucking center itself.
Oh, so haul around your wife or girlfriend and make 100k while driving on icy roads, at night, in traffic, at sleazy truck stops, and LIVING in a freaky truck?
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.
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.
If you wish for Quot to reply, you have to include him in the post.
For having nothing but a high school education (some of these guys have less), starting somewhere at $30k-$35k in todays world is a GREAT starting salary.
Yep! I started off as one but moved to logistics.
Hell, I make that part time mowing lawns... And I don't have to go to New York!!!!!!!!!
I've known a few truckers...The one's still in it, hate it and want out bad....It just don't pay enough for no life, headache, not to mention the dangers involved.
What garbage.. My sister is a 27 year old day-care operator. She just had her gall bladder removed.
I know dozens of older gentleman who have been trucking all their lives and don’t have any problems. Equating truck driving with poor health is stupid.
LOL! Your still living in the early 90s. Illegals in Cal earn more than that.
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