Driver Shortage: Causes, Difficulties and Solutions

Even though the highway transportation bill has had much publicity in recent trucking industry news, there is just as much discussion about the driver shortage.  According to The American Transportation Research Institute, the driver shortage was the third most pressing concern in its annual survey.  Currently there is a shortage of just under 50,000 drivers.  However, projections show there is a need to hire about 90,000 drivers a year to avoid the shortage.  According to the American Trucking Associations, the shortage could be as high as 174,294 by 2024.  At the Annual National Shippers Strategic Transportation Council Shippers Conference & Transportation Expo, it was estimated that trucking accounts for 70% of all freight transported annually in the U.S.  We need drivers to “keep on tucking” to keep our economy from collapsing.

What are the issues driving the shortage?

There are numerous factors contributing to the current truck driver shortage.  For starters, our economy is recovering from a recession.  Since the economy has bounced back, we need more drivers driving the greater demand of goods and raw materials.  Another factor to consider is the treatment of our current truck drivers.  Most feel as though they are treated with less than appropriate respect.  They work hard and provide a service and rather than be looked down upon, they should be appreciated.  Therefore, turnover in the industry is a threat.  Also, as any industry, there is a need to hire new drivers in order to balance the numbers scale for those that are retiring.  Besides economic recovery and growth, replacing retiring drivers is the second greatest reason for driver demand. Another factor is the difficult lifestyle that this type of job demands.  Not everyone is able to cope with the demands.  Furthermore, only about 88% of those who apply are qualified for the job.

Other factors are interwoven in creating difficulties in hiring and retaining drivers.  For instance, the overcrowding of our nation’s roadways.  Drivers are oftentimes stuck in slow-moving traffic.  For drivers who are being paid per mile, this lost time translates to lost pay. This also leads to drivers missing their scheduled dock delivery times and that usually means they are at the delivery location for much longer than originally anticipated.  This could sharply decrease their pay as more time is lost.  And even though we are moving towards a more stable and profitable economy, we are still coming out of a recession in which purchasing of new equipment was sorely lacking, and therefore, the working conditions are something else to consider.  Another factor is that drivers must be 21 before the can earn their CDL Class A license.  Most likely the potentially new driver will find work or go to college after leaving high school.  This means that many  potential drivers are either going to find a job where they can utilize their college education or they have in the meantime found an industry that they are working and thriving in, and no longer wish to become a licensed driver.  Finally, regulatory measures could create a greater issue with driver shortages.  For instance, truck driver hours-of-service restrictions may cause more drivers to find alternative means of employment.  More trucks, trailers and drivers will be required to handle the workload.  

Who or what we are looking for to be the solution?

There are many solutions that have been offered by various involved parties.  Some are more realistic than others; however, most likely no single solution will solve the driver shortage.  One solution offered is hiring more female drivers.  There is often a perceived notion that truck driving is not for women due to questionable conditions of some truck stops and handling of their rigs.  Another proposed solution is that we look to our current military service men and women for more drivers.  They are receiving valuable training while driving trucks during their service.  The difficulty lies in coaxing them from their military benefits, compensation and lifestyle.  Another demographic group that some are hoping will fill the gap of drivers is military veterans.  This seems like a very feasible option.  Many times veterans leave the military and have difficulty finding employment.   Therefore, this solution serves two purposes.  Others suggest that the age limit at which a commercial’s driver’s license may be obtained be lowered to 18, rather than the current age limit of 21.  This would also serve two purposes, as the age range of 18-20 has the highest number of people who are unemployed.   

Of course some believe that the better the pay being offered, the more people will be interested in becoming drivers.  Many companies are now making concessions such as offering more pay per mile and even bonuses.  They are also offering things such as satellite television in cabs, in-cab beds, pay that will ensure drivers will be compensated when there are delays due to weather conditions or breakdowns, the promise to be home on weekends, or an offering of more miles if wanted.  They are also working to ensure that drivers are being respected.

Still another proposition that is currently being hotly debated in Washington is 33 foot doubles trailers.  Currently doubles trailers extend 28 feet as per federal laws in place since 1982, with an exception for 28.5 foot trailers that were manufactured before December 1982.  Currently there are 31 states that prohibit the 33 foot trailers.  It would be difficult for any carrier to use the 33 foot trailers for anything other than intrastate moves, as there are only 17 states in the contiguous U.S. that allow them.  The benefit of these trailers is that an extra 5 feet per trailer and a total of 10 extra feet per doubles would be added.  This would help add capacity, reducing the number of trucks on the road.  This, in turn, would alleviate some of the need for more drivers and reduce extra fuel consumption. It is estimated that use of 33 foot trailers would prevent 912 highway accidents  and reduce carbon emissions by an estimated 4.4 billion pounds yearly.  

So how does the driver shortage affect shippers and the economy? 

For one thing, you cannot have a positively progressing economy if you do not have the capacity to transport goods and raw materials.  If the raw materials are not being delivered, then companies are not able to make the goods; without goods, there can be no profit.  Further, while the drivers are sitting in traffic, buyers are delayed in receiving their goods.  Delays, again, mean lost profit.  Even on a larger scale, delays may cause entire plants for hours, which wreak havoc on production and profit.

Another thing to consider is that while the hiring carrier companies are offering bonuses, higher pay and other benefits, that extra funding will be coming out of your pocket when rates are increased.  Carriers still need to generate enough revenue to cover operating costs and to hopefully see a profit.  If they are to pay out more to drivers, then the money has to come from somewhere.

As for the 33 foot trailers, this could also create some rating issues.  Carriers’ rules tariffs would need to be updated to make allowances on how to rate shipments when 33 feet are available, as opposed to 28 feet.  If the changes are not implemented, shippers will require the knowledge to handle freight rating and charges for these larger capacity trailers.

With a future filled with rules, regulation and equipment changes, shippers need to ensure that they are not being overbilled.  AMTR auditing experts are prepared for these changes and how to monitor and adjust to the billing changes.  Let AMTR help you to help yourself to our expertise, manpower and after-payment freight auditing services.

Niki Bolton

www.amtr.com