Rising Driver Turnover Rate Threatens Shippers

[OntarioVanMan]

Like wow....79% turnover!

William B. Cassidy, Senior Editor | Oct 11, 2011 7:30PM GMT
The Journal of Commerce Online


Customers must help truckers keep drivers to reduce costs, says consultant

Shippers need to do more to help trucking companies reduce rising driver turnover rates and help keep transportation costs in line, a transportation consultant says.

“Shippers are going to have to become more flexible to trucking company needs,” CostDown Consulting CEO Joe White said.

The alternative could be a greater increase in transportation costs, as higher driver turnover rates push up hiring, operating costs and rates at truckload carriers. The average annual driver turnover rate for large truckload carriers hit 79 percent in the second quarter, according to the American Trucking Associations.

Higher driver turnover forces trucking companies to spend more on hiring and recruiting. Costs can range from $3,000 to $8,000 per new driver, White said. He was interviewed for an article on driver retention that will appear in the Oct. 17 print edition of The Journal of Commerce and be available online to members.

High turnover rates mean some carriers are spending millions of dollars a year just to keep a stable workforce and offer a sustainable level of capacity to shippers. Shippers already asking prospective carriers about driver safety programs may begin enquiring about driver retention as they look to secure capacity.

To improve retention, shippers should discuss pickup and delivery times with carriers with an eye to helping drivers avoid rush-hour traffic congestion. Eventually, White said, shippers may consider more collaborative transportation practices — with other shippers and carriers — to improve driver productivity.

“I wouldn’t be surprised if it got to the point where shippers encourage competing carriers to share freight to get the best productivity out of their drivers,” said White.

Rising Driver Turnover Rate Threatens Shippers | Journal of Commerce

 

[greg334]

Here is what I see as a possible uninformed writer -

Shippers already asking prospective carriers about driver safety programs may begin enquiring about driver retention as they look to secure capacity.This has been going on for a long time, one of the things I noticed back in 2007, so why the word - already - when it seems to be the norm?

 

[OntarioVanMan]

Here is what I see as a possible uninformed writer -

Shippers already asking prospective carriers about driver safety programs may begin enquiring about driver retention as they look to secure capacity.This has been going on for a long time, one of the things I noticed back in 2007, so why the word - already - when it seems to be the norm?

The writer seems behind the curve so to speak..with looming CSA and all.....

 

[greg334]

What looming csa?

it is here and has been but I don't see the massive cleaning house or huge increase in idle (driverless) trucks, do you?

 

[OntarioVanMan]

What looming csa?

it is here and has been but I don't see the massive cleaning house or huge increase in idle (driverless) trucks, do you?

Don't you think that 79% turnover rate...some could be attributed to CSA??

 

[greg334]

Don't you think that 79% turnover rate...some could be attributed to CSA??

Not in the sense of what turnover is.

I think that the industry for the longest time has been using bottom of the barrel drivers and pushing them through their system to get them licensed and then when they screw up, mainly because of the recruiting and training methods used, they are dumped to limit the carrier's liability.

CSA hasn't provided anything new outside of applying the driver's caught behavior through inspections to the carrier's records but between the two entities, the carrier has the advantage where the driver does not.

 

[cheri1122]

What looming csa?

it is here and has been but I don't see the massive cleaning house or huge increase in idle (driverless) trucks, do you?

I think the fact that the effects of CSA will be slow in appearing [points take some time to accumulate, followed by gathering statistics for comparison to pre CSA conditions] is the main reason it was implemented in such a hurry that it overlooks some extremely important considerations.
It will be years before its' effects are actually seen.
Meantime, the point brought up of scheduling pickup and delivery appointments that force drivers to be part of the rush hour mess is one that should be addressed. There is no time benefit to be gained for the extra costs in fuel and stress laid on the driver and the truck in stop & go traffic - and the revised HOS don't permit the driver to 'sit it out' anymore [thus causing the very fatigue they purport to alleviate] as many of us used to do.
Case in point: a recent afternoon pickup in Pa put me in the DC/Baltimore afternoon rush, which added enough time to the transit that delivery was delayed to the following morning. Had that well known factor been anticipated, delivery would have been scheduled for the next morning to begin with. Multiply that by the many trucks that were in the same boat, congestion would be improved, drivers would save on fuel costs while experiencing less stress [4 wheelers in a hurry take crazy chances!] and the freight would arrive at the same time.
Shippers [and brokers] don't THINK beyond 'x number of miles @ x mph = delivery time' when they schedule trucks, and that mindset adds needlessly to congestion and fuel consumption, not to mention the drivers' level of fatigue and stress.

 

[greg334]

I think the fact that the effects of CSA will be slow in appearing [points take some time to accumulate, followed by gathering statistics for comparison to pre CSA conditions] is the main reason it was implemented in such a hurry that it overlooks some extremely important considerations.

Actually Cheri, the points are already there and there has been no slow about it. Some carriers are really panicking over this while others are just taking precautions on how they will limit their liabilities with poor drivers. I don't see the cleaning of these carriers and don't expect it until there is more officers on the road.

Remember these points are applied by inspections right now, which means an inspection has to take place and with the lack of enforcement officers on the road, it will not catch many. This is a fear of many who see this as a first step with the next one having in truck violations of any sort being applied and the one after that all moving violations being applied.

 

[moose]

How this kind of crap can go across an editor desk, is beyond me. better yet, how this kind of writer can find readers, this kind of consulting co. can stay in business, or even find consumers to pay for such consulting service, like going to the shrink to hear about the shrink's problems.

some point taken:
*drivers turnover is a huge profit center, the greener the rookee, the better.
*freight rates are not, & are not expected to rise, regardless of shippers actions. and if choose to do something, it'll not be staffing up. freight rates increases don't come even close to wages, and long hours .
* truck parking and D&H, needed mach more to accommodate truckers.

 

[JimF51]

Heck, driver retention has always been a issue for companies. Or at least since deregulation. Companies used to, and some still may do so, that they had 'one of the lowest driver turnover rates', to show potential recruits what a nice outfit they were.

The biggest current effect CSA has had, I think, is that companies are being more choosy with regards to a drivers safety record. They try and find drivers with as clean as possible records now, since they will get hit with points, instead of just the driver.

In that regard, they are willing to pay more insurance to get drivers with less experience, but good records.

When I decided to get back on the road in late '09, after a few years off, just about every company I talked to required at least 1 years recent experience in last 3, or be a recent grad from a driving school, or have taken a refresher course. Was told it was not the company's requirement, but a insurance one. It was, but only because the Ins. co would charge higher premiums for drivers with less experience.

Now, looking at ads from many of the same companies, many are taking drivers with a min of 3 months experience. But they better have squeaky clean records. But the companies are now paying the higher Ins. rates, to get those clean record drivers.

There's a guy who occasionally has lunch with a friend and I, who is a driver relations (recruiter) for a local company. He was the one who explained the Ins. thing to me.

 

[JimF51]

Case in point: a recent afternoon pickup in Pa put me in the DC/Baltimore afternoon rush, which added enough time to the transit that delivery was delayed to the following morning. Had that well known factor been anticipated, delivery would have been scheduled for the next morning to begin with.

Just curious, Cheri. What would have happened, or what would dispatch have said, if you had pointed out that it was unlikely you would make original del. time, based on the time of day and where you were picking up?

 

[cheri1122]

Just curious, Cheri. What would have happened, or what would dispatch have said, if you had pointed out that it was unlikely you would make original del. time, based on the time of day and where you were picking up?

My best guess [based on experience] is that dispatch would have said "Just do the best you can, and keep us informed. If the delivery needs rescheduled, we'll take care of it." And they did, but my point is that the situation wasn't one of unexpected delay - the mess around Baltimore/DC is well known, and construction has just made it worse.
On another load just after, I timed the trip to go through after midnight - and sat on 495 for 30 minutes, while construction crews shut the road down completely.
The cherry on top: the buzz in DC is that another round of money for roadwork is probably forthcoming, and next year, it will get even worse - but will the transit times be adjusted to reflect reality?

 

[mcavoy33]

In that regard, they are willing to pay more insurance to get drivers with less experience, but good records.

When I decided to get back on the road in late '09, after a few years off, just about every company I talked to required at least 1 years recent experience in last 3, or be a recent grad from a driving school, or have taken a refresher course. Was told it was not the company's requirement, but a insurance one. It was, but only because the Ins. co would charge higher premiums for drivers with less experience.

Now, looking at ads from many of the same companies, many are taking drivers with a min of 3 months experience. But they better have squeaky clean records. But the companies are now paying the higher Ins. rates, to get those clean record drivers.

I think your post has merit. I asked a while back about moving up to a s/t and was told no because of the insurance requirements but after I proved myself to the company with a good record, even though I don't have 1 year cdl experience, I got promoted to a st. that combined with a crunch to find good drivers.

 

[OntarioVanMan]

My best guess [based on experience] is that dispatch would have said "Just do the best you can, and keep us informed. If the delivery needs rescheduled, we'll take care of it." And they did, but my point is that the situation wasn't one of unexpected delay - the mess around Baltimore/DC is well known, and construction has just made it worse.
On another load just after, I timed the trip to go through after midnight - and sat on 495 for 30 minutes, while construction crews shut the road down completely.
The cherry on top: the buzz in DC is that another round of money for roadwork is probably forthcoming, and next year, it will get even worse - but will the transit times be adjusted to reflect reality?

I think this is where "communication" comes in....A dispatcher has a lot on their minds already....some may think about it, most do not...that is where it is up to us upon acceptance to inform them the timing is not there....

 

[cheri1122]

I think this is where "communication" comes in....A dispatcher has a lot on their minds already....some may think about it, most do not...that is where it is up to us upon acceptance to inform them the timing is not there....

I wish I could do that, but I doubt they have time to wait for an answer while I find the pickup location [not a major city] and the delivery [ditto] so I can get an idea of the routing, and what time I can expect to hit any major cities on the way, because I just don't know it all already. Had the route gone down 81 instead of 95, it would have been a different situation.
Unfortunately, they need an answer pretty quickly, and the pickup is often scheduled so that I need to get moving pretty quickly too, and do the routing after arrival at the shipper. If I need fuel [because I won't start the clock to fuel while waiting for a load offer], it's even more of a rush situation - I try to fuel towards the end of a load, but it just isn't always possible.

 

[Ragman]

Yeah, yeah, yeah, i know this is an old thread, but i thought this article belonged here.
Get over it!

Why is driver turnover in trucking so high?

The operating realities of long-haul, for-hire trucking translates into working conditions that require both employee and independent contractor drivers to be away from home, and alone for days and sometimes

www.freightwaves.com

 

[muttly]

A good economy ironically may have something to do with it too. More choices in jobs that don't involve being on the road.

 

[danthewolf00]

When you can get paid more to flip a burger than a forklift driver or welder then why would you want to drive a semi.....