Driver Shortage

Broompilot · Dec 30, 2006

Where is this shortage really at? If there is such a shortage than why have rates not gone up, supply and demand should be raising our rates and instead they are stagnet or is just me?

I did not get into this to get rich, just to make a good enough living to support myself and family. With inflation eating at our butts and our Carriers not giving a crap to raise rates to help us adjust to inflation the only thing we can do is get leaner and leaner and to hold onto the wheel longer.

One of my biggest factors at deciding to jump into this was the driver shortage that I kept reading about and hearing about. I am not saying this was a bad decision but in the back of my mind I realize someday this is gona catch up and smack us hard, I am hearing more and more about not being able to make a decent living. The people buying trucks, vans and financing them seem to the most valunerable followed by the splits with the drivers paying for the fuel. (financing to much)

I have heard and read about the JBs, Swift Etc.. this is not what I am talking in regards to but the overall health and continuation to prosper at what we all do. I want a strong prosperious future for what I do and those I do it with, but what I am hearing could be deteriating at a positive attitude over a period of time.

I ask this, how can we get any leaner without it costing us out of pocket? The consumer is reaping the benefits of our labor and investments. One example is the post I made regarding the increase at the oil change place, just another example of EAT IT.

louixo · Dec 30, 2006

There IS a driver shortage, which is the reason itÂ´s so easy to switch carriers. It all got lost in deregulation, and now any startup company, can get in there and claw it out with the big boys. In one way itÂ´s a testament to free enterprise. Nobody owes you a free lunch and a secure ride. ItÂ´s survival of the fittest. The alternative is the closed shop mentality in all itÂ´s various forms of protectionism. That was my granfathers generation. Look what itÂ´s done to the auto industry, and others. WeÂ´re getting clobbered by international competition, who donÂ´t have to play by the same rules. The pendulum swings. Unions abuse, and corporations abuse. Just like the politicians. When the republicans are in, they focus on corporations and business. When the democrats get in, they focus on socialist issues. The rich get richer, and the rich get poorer. ThatÂ´s when the pendulum is swinging too far one way or the other, and it eventually swings back the other way. Same in the trucking industry, airline industry, or any industry. ItÂ´s all about the bottom line, and trying to improve yours to compete. Some call it greed. I think itÂ´s just capitalism. If the rates go up in trucking, and force the consumer to spend too much, then the consumer votes the pendulum. ItÂ´s a vicious circle. I donÂ´t know the solution, except to do the best you can, hang in there and be tenacious. The alternative I donÂ´t have to tell you.

ATeam · Dec 30, 2006

>Where is this shortage really at? If there is such a
>shortage than why have rates not gone up, supply and demand
>should be raising our rates and instead they are stagnet or
>is just me?

I believe the shortage is there and something has to give. What has given, is driver turnover. The industry has learned to live with driver turnover rates of over 100% in over-the-road drivers. Carriers have figured out how to move the freight. Turnover costs are being built into the rates. LTL (less-than-truckload) turnover rates are far lower than TL (truck-load) rates, mostly because LTL drivers get to go home at night. To fill the need for TL drivers, carriers are living with a 100%+ turnover rate and doing whatever they can to get a warm body in a truck long enough to get a few loads delivered.

While truck driver pay has increased some, the driver shortage is showing up not so much as more money in driver pockets but as lower quality drivers behind the wheel.

Tennesseahawk · Dec 30, 2006

Exactly what I was talking about with the ATA's need for "safety". They claim they want it, yet put substandard drivers in their trucks. Don't let it fool ya, this is exactly according to their plan. Low rates, driver turnaround, higher insurance. This forces a large pool of poorly trained (not necessarily bad) drivers to stay within their system, as most insurance companies wouldn't take them on. If trained properly, you know the ATA companies would have fewer good drivers than they do now.

One thing I wonder about. If biz is so good that there's a driver shortage, why do all these big companies have plummetting stock?

"If I claim to be a wise man, it surely means that I don't know." - Kansas

chuckwagon · Dec 30, 2006

Ok - well, here we go again!

Yes there is a driver shortage.
Yes the quality of drivers, thanks to the ATA, has dropped.
Yes carriers do not care about the driver - they can always replace us.

So what do we do?

We fight for a decent rate on every load we take.
If you don't like the offer - turn it down.
If you like the offer - take it.
Take better control over the pay you take.
Yea - we say we want independance - so except it and work with it.

If you don't have forced dispatch you can turn down loads that you don't like the rate.

If this course of action does not work - well, you all know where I could take this - but really I don't want to.

raceman · Dec 30, 2006

Well I must say I agree with the Wagon on this one. Having lost some of my business over the last two months to Direct Expedite, I can speak first hand. They came in an bid one of my jobs for almost a quarter of what I was getting. They put a company truck with driver on this and there is no way they are doing anything but lossing money on this run but they got in the door. Who knows if they will bid right from there or not.

In any case folks must stand up. It may hurt for awhile but if it catches on, rates will get fixed. Problem is as we all know, no way enough will stick together to pull it off

Raceman
Dedicated O/O
OOIDA 741748

lanier1 · Dec 30, 2006

I heard on XM the other day the real driver shortage is the projected number of drivers to retire in the next ten or so years. I can't remember the number of drivers that are 55 to 65 now and expected to retire but it was huge.

highway star · Dec 30, 2006

Raceman, you could easily find yourself back in the drivers seat. It's very common for companies to go for the low dollar, only to find out the service quality goes down with the price.

cheri1122 · Dec 30, 2006

That's true, but I wonder how many companies find the tradeoff acceptable. Low price, and the concomitant low level of service, sure hasn't hurt WalMart any - especially as they can raise the price - after they've driven the competition out of business...

highway star · Dec 30, 2006

Wal-Mart, Kmart, Meijer, ect., are not places that there should be much of an expectation of service. Grab it and go.

nightcreacher · Dec 30, 2006

>Where is this shortage really at? If there is such a
>shortage than why have rates not gone up, supply and demand
>should be raising our rates and instead they are stagnet or
>is just me?
>
>I did not get into this to get rich, just to make a good
>enough living to support myself and family. With inflation
>eating at our butts and our Carriers not giving a crap to
>raise rates to help us adjust to inflation the only thing we
>can do is get leaner and leaner and to hold onto the wheel
>longer.
>
>One of my biggest factors at deciding to jump into this was
>the driver shortage that I kept reading about and hearing
>about. I am not saying this was a bad decision but in the
>back of my mind I realize someday this is gona catch up and
>smack us hard, I am hearing more and more about not being
>able to make a decent living. The people buying trucks,
>vans and financing them seem to the most valunerable
>followed by the splits with the drivers paying for the fuel.
> (financing to much)
>
>I have heard and read about the JBs, Swift Etc.. this is not
>what I am talking in regards to but the overall health and
>continuation to prosper at what we all do. I want a strong
>prosperious future for what I do and those I do it with, but
>what I am hearing could be deteriating at a positive
>attitude over a period of time.
>
>I ask this, how can we get any leaner without it costing us
>out of pocket? The consumer is reaping the benefits of our
>labor and investments. One example is the post I made
>regarding the increase at the oil change place, just another
>example of EAT IT.

In case you havent noticed,most of the freight being hauled evryday,the rates have gone up,do you think all these trucking companies could offer 40 to 50 cpm drivers wages at the low rates of the past,and as far as our expedite companies,they give discounts,because they have to to stay in business.If all the companies charged the same for our services,only the large would get the freight

cheri1122 · Dec 30, 2006

Exactly - you don't get the level of service that was provided by the smaller company that went out of business when the big place took over, but accept that as a tradeoff for the low price. After you've accepted less service as a norm, then the price creeps up. Brilliant, aint it?
Other than my own standards, what incentive do I have to provide superior service? Just as an example, my carrier penalizes drivers who refuse Canada loads, with I believe a 2 cpm reduction - but do they reward those of us who took the trouble to get a FAST card, & go to Canada, with an extra 2cpm? They do not.
Suitably rewarding the good drivers would be a step in the right direction.

Tennesseahawk · Dec 31, 2006

I don't know of any .50/mi companies. The ones who do the .40+/mi can claim that just to get some newbs in the door, where they think they'll drive for 5 years and make that much in the end. For every driver that makes .45/mi, I bet they have 20 that make less than .30. That's how they get over on us. Kinda reminds me of the commercials: "xxx/mo for returning Dahmler Chrylers employee lessees." Yeah... market toward the ones getting the best deal, so you can sucker in the rest of the saps.

I'm also curious as to what will happen when a hefty chunk of the truckers retire in the next year. Who wants to bet they'll be replaced by ppl with names like Pedro?

"If I claim to be a wise man, it surely means that I don't know." - Kansas

nightcreacher · Dec 31, 2006

my buddy makes 52cpm at heartland,and I know most of these companies that advertise the big money,well i dont want to say they lie,but I would rather talk to a car salesman than a recruiter,

chuckwagon · Dec 31, 2006

Once again.

It is a supply and demand situation.

If we can 'create' a shortgage of drivers willing to work for dirt cheap rates then we increase the overall demand for higher quality drivers.

If we can create a demand for higher quality drivers we can see our cpm rates increase.

It really is a simple formula when you think about it.

So when all the 50-65 age group drivers retire in the projected next 10-years we should already be in high gear 'creating' the next shortage of drivers willing to except subpar mileage rates.

bryan · Dec 31, 2006

Hi

Im with nightcreaper on this one.The pay of the average tractor-trailor driver has increased.From 22 cpm to 45 cpm with health insurance.The general freight rates have also increase along with specialized freight rates.A 53 foot reefer load is averaging over $3.00 per mile.A 53 foot drybox load is averaging $2.15 per mile.The problem is us.We are becoming the cheapest thing out here.We want loaded both ways (no empty miles)so our carriers are cutting the rates to provide us with loads.This mentality of keeping the truck loaded is going to be the death of our industry.

Look at all the not so hot loads you haul through out the year.You know the ones where you showed up at the cons and they said they weren't expecting that stuff till tomorrow.Your carrier bid that at half of the going rate because its only half a load.24 foot of freight instead of 53 foot.Just to keep you rolling or to shut you up, which ever maybe the case.We got our wish we got a load.

There is a major drivers shortage in tractor-trailor divisions, a slight drivers shortage in straight trucks and no drivers shortage in cargo van drivers.So to adapt the customers are just shipping smaller loads on more trucks and it is costing them more.Two 24 foots at $1.80 per mile compared to a 53 footer at $2.15 per mile.But they are getting the freight moved.Lets just hope that our rates don't drop so low that it becomes cheaper to send two trucks then the highways will be so congested with "little trucks" that we can't get anywhere.

Our impatience and greed has come back to haunt us.

Crazynuff · Dec 31, 2006

> That's true, but I wonder how many companies find the
>tradeoff acceptable. Low price, and the concomitant low
>level of service, sure hasn't hurt WalMart any - especially
>as they can raise the price - after they've driven the
>competition out of business...
If you haven't noticed lately WalMart distribution centers now look like Schneider terminals and Schneiders answer to the driver shortage is to get immigration laws eased so they can get more immigrant drivers than the maximum allowable they are getting now . Schneider tankers have a sign on the back that says "Free driver training " That's a scary thought - a Schneider trained hazmat driver .

slfisher45 · Dec 31, 2006

"Look at all the not so hot loads you haul through out the year.You know the ones where you showed up at the cons and they said they weren't expecting that stuff till tomorrow.Your carrier bid that at half of the going rate because its only half a load.24 foot of freight instead of 53 foot.Just to keep you rolling or to shut you up, which ever maybe the case.We got our wish we got a load.

There is a major drivers shortage in tractor-trailor divisions, a slight drivers shortage in straight trucks and no drivers shortage in cargo van drivers.So to adapt the customers are just shipping smaller loads on more trucks and it is costing them more.Two 24 foots at $1.80 per mile compared to a 53 footer at $2.15 per mile.But they are getting the freight moved.Lets just hope that our rates don't drop so low that it becomes cheaper to send two trucks then the highways will be so congested with "little trucks" that we can't get anywhere.

Our impatience and greed has come back to haunt us. "

Bryan, I don't get your point. I'm relatively new in the expediting business, from the pick and deliver aspect. I worked for a GM division for 15 years, and understand some things about "Just in time inventory", and the aspects of expediting and it's birth and huge growth.
Customers won't deliver through expeditng companies and pay greater rates just to deliver freight. They will set up routine shipments to be delivered at certain times and dates. The cost is less than having the inventories sit in their own storage systems. That is part of the huge growth. The job isn't created by a dispatcher to shut you up.
I've taken loads that are delivered a few hours early, but the con takes the load because it is needed. Usually the automotive companies won't accept a load too early because the room to store it is not yet available. That is part of the "Just in time inventory".
This whole forum is on Expediters On Line. Not general freight trucking. These are two different industries.
Maybe I'm wrong, but if there are companies hauling freight on hotshot trucks that don't need it, then they are losing money.
My straight truck delivered its smallest packaged freight of 10 lbs in November. I happened to be in the right place with no vans available. I got my $1.22 a mile plus FSC of $.24. In the expediting business, from my seat, freight is freight is freight.
Miles not pounds.