worst-ever driver shortage
looming, truckers warn
The trucking industry will face the worst driver shortage in
its long history unless conditions change during the next
two years, trucking industry officials said in comments on
and off the record in Atlanta last month.
Several factors are conspiring to create such a pronounced imbalance, executives said at a conference sponsored by the United Kingdom-based firm eyefortransport.
One is the increasing demand for freight services, especially in the truckload segment. A second is the federal government’s new safety initiative, known as the Comprehensive
Safety Analysis, or CSA 2010. This program, designed to
remove the worst company and driver violators from the
road, is expected to also reduce the available pool of drivers.
A third is the aging driver workforce; by some estimates,
one out of every six drivers is now 55 or older.
These trends, combined with carriers’ reluctance to invest
in new rigs, will trigger significant rate increases for shippers
and third-party logistics service providers. Not only will they
have trouble finding capacity, but they also will pay more
should they procure it, according to trucking executives.
The pain will be especially sharp for the legions of shippers who took advantage of the buyers’ market for truck
space during the recession to beat down their carriers on
rates, abandon a longtime carrier for a rival, or play off two
or more carriers against each other, trucking executives said.
Points of contention
Carriers at the meeting raised a host of concerns about the
Federal Motor Carrier Safety Administration’s (FMCSA)
CSA 2010 initiative, which measures the safety of carriers
and drivers using seven criteria. The program is slated to
take effect Nov. 30. It will mark the first time that the federal government has measured driver safety directly.
CSA 2010’s objective is to reduce the number of crashes
and associated injuries and fatalities while making the most
short takes
Hytrol Conveyor Co. has redesigned its website,
www.hytrol.com, to make it more customer-focused. The
site allows users to see Hytrol products in action, view
detailed examples of solutions by industry, and avail themselves of new customer service features. … American
Airlines Cargo Division has raised the weight limit for its
international Priority Parcel Service. The new limit is 100
pounds per piece for shipments originating in the United
States to all countries worldwide, with the exception of
go figure …
31%
The percentage of North American and European
pharmaceutical manufacturers who cited “company
ethos” as the main factor driving their sustainability
initiatives. That was followed by “regulatory compliance” (27%) and “company image” (23%). Only 8%
cited “customer requirements” as the main driver.
SOURCE: EYEFORTRANSPORT
efficient use of FMCSA’s resources. While truckers say the
initiative is well-intentioned, they believe the point-based
ranking system will have the effect of penalizing otherwise
safe and qualified drivers. They also say it will force many
carriers, who will face higher insurance premiums for keeping supposedly higher-risk drivers behind the wheel, to terminate thousands of drivers whose point rankings are too
high to be deemed safe operators under the program.
The consensus at the Atlanta meeting was that CSA 2010
would result in a driver attrition rate of 5 to 8 percent.
However, Derek Leathers, COO of truckload carrier Werner
Enterprises, said that percentage is “too low.” (Leathers did
not offer an alternate figure.)
Leathers said that if left unchanged, CSA could become
the most damaging regulation in the trucking industry’s
history. He urged shippers to make their voices heard in
opposition to the program if they do not want to face a significant shortage of drivers to haul their freight.
Government officials say that CSA’s purpose is not to disqualify safe drivers, and that operators with good track
records and a history of good behavior behind the wheel
have little to worry about. “If you are a good driver today,
or a good motor carrier today, you will be a good one after
CSA 2010 takes effect,” FMCSA Administrator Anne S.
Ferro told a shipper policy group in early June.
Japan. … Ryder System has opened a new service facility
and used commercial vehicle sales center in Atlanta. The
company will provide maintenance for a diverse fleet of
commercial vehicles at the 24,000-square-foot facility. …
U.S. Bank is rebranding its freight payment services. It is
discontinuing the PowerTrack name and packaging those
services under the U.S. Bank brand. … Sunteck Transport
Group, a non-asset-based provider of transportation services, has opened an agent office in Tampa, Fla.
