driver shortage

2022 Set to See Similar–If Not Worse–Trucker Shortage, Experts Say

January 13, 2022 by Levinson and Stefani Leave a Comment

“I wish I had a crystal ball to be able to see the future,” said CPC Logistics vice president of operations and safety, Daniel Most, of the trucker shortage continuing into 2022. “I think there’s still going to be a shortage that’s significant because of the supply and demand. There is still going to be a lot of freight to move next year and the same [amount] or fewer drivers.”

The truck driver shortage is clearly not being left behind in 2021, many experts say, with American Trucking Associations estimating that at least 80,000 drivers are currently needed in the industry. By 2030, that number could reach higher than 160,000, all thanks to a lack of truck driver retention and recruitment, as well as higher demand than ever brought about by the surge in e-commerce following the pandemic.

Now, many carriers are scrambling to find ways to address the situation, such as offering high pay boosts, sign-on bonuses, and added benefits. Because of this, ATA now believes that trucker incomes are rising at a rate of five times more than they have in the past, and longhaul weekly driver earnings have risen by 25%–at least–since early 2019.

Still, these temporary incentives only come as carriers throughout the industry have to work harder than ever to remain competitive in the midst of an incredibly limited pool of truck drivers seeking new jobs.

“I think as long as the freight market continues to do what it’s been doing and from everything that I’ve been hearing from the folks we work with, I don’t expect that to change, at least through the first two quarters [of the year] and possibly the first three quarters,” said Professional Driver Agency’s director of operations, Scott Dismuke.

A shift in truck driver perception and culture may be the key to solving this ongoing issue, he noted.

“I think it’s just going to be more of the same at this point,” Dismuke said. Unless we can start getting more drivers–newer drivers–attracted to the market, we’re still going to be up against the wall.”

In regards to current truckers being removed from the nation’s roadways due to failing alcohol or drug tests, the Drug and Alcohol Clearinghouse has reported 93,808 such violations since 2020, with a majority of those forgoing any return to the industry once their commercial driver licenses were revoked.

“Only 20,000 of them have done what they needed to do to get their license reinstated,” said CPC Logistics’ Most. “There’s 80,000 right there, and we’ll be on pace to lose another 50,000 to 60,000, potentially, next year. And then there are all the retirements. With the aging driver force, can we get the younger population interested in this type of job?“

Additionally, trucking companies need to begin heavily prioritizing regular communication with drivers while they’re on the road–so that truckers feel connected and supported, especially if any potential obstacles or vehicle troubles occur during a drive, Dismuke added.

“When it comes to the drivers that are in the market right now and new drivers entering the market, I think we’re in for more of the same,” he explained. “Carriers knowing what their drivers are saying right now is probably more important than it’s ever been, because you have to have the ability to identify and intervene in order to retain drivers right now.”

The boom in e-commerce will cause the current demand for freight to remain high, if not grow even more, Dismuke said, and 2022’s shortage severity will depend on just how much worse that demand becomes.

Finally, the ongoing shortage in semiconductor chips has exacerbated the issue as the available supply of equipment has become lower than usual.

“I think, once you get this whole chip thing figured out–a lot of the chips come from Malaysia–I think you could possibly see a pickup in the auto-hauling side of things,” he said. “Then, depending on what happens with the president’s restructure bill, you could see an increase in a lot of the construction…which would be good for flatbed [capability]. I think there are still a couple of issues that we need to wait and see what happens [with] that could actually increase what is already a very heavy freight market.”

Driver Schools See High Numbers of Potential Drivers Amid Shortage, Some Offer Incentives

December 3, 2021 by Levinson and Stefani Leave a Comment

“It’s an exciting time to be a truck driver right now because there’s so much demand for drivers,” said director of the California Truck Driving Academy, Tina Singh. “Our yards are busy, and they’re very vibrant with a lot of activity.”

The truck driver school, based in Los Angeles, has seen more potential truck drivers walk through its doors recently than it has in quite a while, which can likely be attributed to the long-running truck driver shortage taking place across the country that has brought with it competitive pay and benefit offers from fleets desperate to onboard more truckers.

Since 2020, the California Truck Driving Academy has had a nearly 20% boost in enrollment and may even begin offering night classes to meet demands, according to Singh.

“Everything in this country runs by truck at some point or another,” she said. “And so, you know, you need truck drivers to move goods.”

Because the COVID-19 pandemic brought about a major increase in e-commerce and online shopping habits, consumer spending has risen 15% over the last year, with production numbers reaching numbers of 5% more than before the start of the pandemic as manufacturers step up to meet the demand for goods as efficiently as possible.

Additionally, many employees in a variety of industries decided to leave jobs during the pandemic that caused them to frequently come into contact with other people. Because of this, goods transport worker, retail staffer, and ship-unloading worker shortages skyrocketed, as did the overall shortage of truck drivers–which has reached about 80,000, noted University of Southern California’s Marshall Center for Global Supply Chain Management’s executive director, Nick Vyas.

The California Truck Driving Academy has also seen boosts in potential drivers showing up for training due to a clearly stretched-thin supply chain at ports in Long Beach and Los Angeles, where many ships are often waiting off the coast for unloading for long periods of time (the average wait is currently at 17 days, although port efforts are operating 24/7).

By filling these vacant roles, “you’re kind of helping the community out, and you’re making money at the same time,” said Academy student Thierno Barry. “It’s a win-win situation.”

Driving schools in other states are also doing their part to ease the exacerbated driver shortage. FleetForce Truck Driving School is now working with the Florida Trucking Association in an effort to bring more truckers into the industry.

FTA-affiliated companies are currently offering to pay full tuition for new truck drivers working to enter the trucking world and obtain their commercial driver’s licenses. Additionally, some students will be able to receive sign-on bonuses along with a full paycheck from the FTA-affiliated company once they’ve received their CDL and are continuing training.

“Trucking is a central part of growing and maintaining a strong economy, but it’s also a life-changing career opportunity for so many people,” said Tra Williams, CEO of FleetForce. “This new program is offering free training and guaranteed employment for applicants who meet the qualifications.”

Williams echoed Barry’s sentiments about how mutually beneficial entering the industry at this time really is for both the economy and the truckers themselves.

“There’s excellent earning potential in this industry right now, and there’s a dire need for entry-level drivers,” Williams said. “It’s a win-win.”

Covering these kinds of costs for new truckers is especially important, as training costs can often deter potential truckers from even beginning the road to employment.

“FTA is always looking for creative solutions to solve industry challenges,” said FTA President, Alix Miller. “The driver shortage limits capacity for trucking companies, and directly impacts the economy and Floridians’ daily lives. This collaboration matches some of the most well-respected companies in the state with well-trained drivers eager to get on the road.”

Right now, FleetForce is working on pre-hire screening checks to make sure incoming applicants are indeed qualified for this particular program. As for the California Truck Driving Academy–what’s currently needed the most is more truck driving instructors.

Industry Experts Focus on Workforce Updates as Supply Chain Struggles, Jay Stefani Weighs in on Safety Concerns

December 1, 2021 by Levinson and Stefani Leave a Comment

At the recent U.S. House of Representatives transportation panel, President of American Trucking Associations, Chris Spear, explained that finding solutions to current nationwide supply chain concerns should come primarily from trucking industry workforce improvement policies.

Federal transportation policymakers were urged to consider supply chain improvement proposals at the hearing by a variety of leaders in the transportation industry. Some of these potential initiatives brought to light during the discussion included an industrywide workforce development project and other methods of combating the ongoing truck driver shortage.

In fact, ATA’s Spear noted that training-focused funding throughout the most important sectors of freight would be paramount to overcoming the shortage of 80,000 drivers–especially with these problems so exacerbated by the pandemic era and the boom of e-commerce and accessibility issues that came with it.

“The COVID-19 pandemic brought with it the temporary closures of state [departments of motor vehicles] and truck driver training schools, which dried up the already-fragile pipeline of new drivers entering the trucking industry,” he said in a push for funding from the Transportation and Infrastructure Committee. “This pipeline is still slow and inefficient today. As a result, companies working throughout the nation’s supply chain are facing higher transportation costs leading to increased prices for consumers on everything from electronics to food.”

President Joe Biden’s Infrastructure Investment and Jobs Act includes an apprenticeship pilot program that has been strongly supported by ATA, as it will allow trained drivers under the age of 21 to operate commercial motor vehicles in interstate commerce. The initiative also allows for the implementation of a training program for even younger drivers (between 18 and 20 years old) to drive Class 8 trucks across multiple states.

“The driver shortage is a looming threat that, if unaddressed, could destabilize the continuity of trucking operations with ripple effects across the supply chain that will be felt by everyday Americans,” lamented Spear, emphasizing the need for these apprenticeship programs.

Regardless of a shortage, keeping safety the priority is imperative when bringing these new and young potential truckers to the industry.

“There is nothing wrong with trying to increase the number of truck drivers to meet the needs,” said Levinson and Stefani’s Jay Stefani. “But along with the push to hire more people, there needs to be an equal increase in safety and training programs. Bringing in new drivers means bringing in inexperienced drivers–drivers who don’t have a lot of miles behind them.”

It should also be common sense that allowing these truck drivers to enter the industry in the midst of the winter season’s inclement weather is something to be avoided, as well, Stefani added.

“That is especially critical when you consider hiring inexperienced drivers right when winter is upon us,” he continued. “Driving a tractor-trailer in snowy, icy conditions is not the same as driving your four-door sedan in that same weather.”

Still, many industry experts made clear their desire to focus on efforts that would work to boost the supply chain as it stands.

“[Transportation Intermediaries Association] members continue to be industry leaders in the technology space, as they must constantly innovate to address an ever-evolving and growing industry,” said CEO and president of TIA, Anne Reinke. “For example, our members utilize the latest technology to facilitate the movement of freight from one point to another. These solutions include maximum freight visibility with real-time data, automation in the back-end office, and utilizing artificial intelligence.”

It’s also important to look toward the supply chain’s relationship with the current environmental regulations at hand, according to Association of American Railroads’ president and CEO, Ian Jefferies. At the panel, Jefferies asked Congress to make sure federal regulations set forth through the National Environmental Policy Act won’t hinder any new infrastructure coming about.

“Federal agencies should promulgate regulations that allow for careful, thorough consideration of the environmental impacts of proposed projects but in a time-limited manner that does not cause unnecessary delay,” he said. “Such an approach would expedite projects that enhance supply chain fluidity but would not prevent comprehensive, effective environmental reviews from taking place.”

These upcoming infrastructure projects are part of Biden’s $1 trillion infrastructure bill.

“The bipartisan law will modernize our ports, our airports, [and] our freight rail to make it easier for companies to get goods to market, reduce supply chain bottlenecks–as we’re experiencing now,” said Biden, “and lower costs for you and your family.”

Global Trucking Leaders Meet in Geneva to Discuss Pressing Transportation Problems

November 27, 2021 by Levinson and Stefani Leave a Comment

The International Road Transport Union, consisting of global transportation leaders, met in-person for the first time in two years to discuss the current obstacles regarding the environment, supply chain exacerbation, and the truck driver shortage.

“It was an opportunity to come together and discuss issues similar to what we do at [the annual Management Conference and Exhibition meeting],” said President of American Trucking Associations, Chris Spear. “We probably did not have one meeting that did not center around the driver shortage issue. It’s chronic around the world, and I think it’s amplified by the pandemic and the pressure it has put on the returning workforce.”

IRU held its November meeting in Geneva for industry experts around the globe; attendees included ATA’s Chairman, Harold Sumerford Jr. and Chief Economist, Bob Costello, along with Spear. Other transportation leaders from North America, South America, Europe, Asia, and Africa were also in attendance.

The truck driver shortage continues to be the current highest-priority issue in the United States trucking industry, as we are still currently short of 80,000 needed truckers–mostly for over-the-road work. This sector of the industry causes truck drivers to be on the road for days on end, which isn’t a very enticing job opportunity, especially given the work-from-home options now available to so many Americans post-pandemic.

ATA’s Costello noted that these problems are not unique to North America by any means, especially with so many drivers retiring early following the COVID-19 era or just reaching retirement age with so few younger drivers entering the industry.

“Not only do other countries have these issues, but they’re for the same reasons–it’s a high average age of drivers,” said Costello. “One of the things we talked about is that the European Union and the IRU are trying to lower the age for drivers from 21 to 18, like we just did in the infrastructure package.”

For drivers under the age of 21 to be trained to operate commercial motor vehicles in interstate commerce, a pilot program has been launched as part of President Joe Biden’s $1 trillion infrastructure bill.

Other countries are looking for ways to find similar solutions to help ease the shortage as much as possible.

“China has a labor shortage–a driver shortage–and it’s for the same reasons–lifestyle and time away from home,” added Costello. “We’re all very similar in that regard.”

Additionally, the issue around safe parking availability continues to be a major problem for American truckers–something that is also highly problematic in Europe, as observed by ATA.

“We saw this, personally, when we were driving on the highway,” said Costello of the parking problem in the EU. “There’s a lack of safe and secure parking in Europe. The trucks were lined up, even worse than they are in the U.S.”

American truck drivers and freight rail workers should look toward boosted collaboration with international counterparts, as well, Costello added.

“[These international industry members] were very interested in the much more collaborative modes in the U.S., and I explained to them that trucks and trains are much more complementary than competitors,” he said.

Still, global supply chain backup obstacles won’t see major solutions until later in 2022, many industry experts agreed.

“There are a lot of things we do not control, like a ship being stuck in the Suez Canal,” said Spear. “There are a lot of things that need to right themselves. We need to get people back to work, across all segments of the economy, not just trucking.”

To fix these issues, ATA has improved its collaborative efforts with the U.S. Environmental Protection Agency, Spear noted.

“We at ATA have demonstrated here in the U.S. our willingness to shape sound, lasting policies with our federal regulators,” he said. “We have been at the table. We are moving our industry in this direction.”

These efforts come after the European Union adopted carbon dioxide emission-reducing standards for new commercial trucks starting in the model year 2025, with even stricter targets coming for the year 2030.

“Europe is moving so quickly, and there is a growing disconnect between their ability to meet those technology timelines for adoption,” said Spear. “We have to have this conversation. They need to stop — in the U.S. and Europe — chasing rainbows and unicorns and start having a realistic discussion [about] how we can go green, and how quickly we can actually do and manage those expectations with the American people and the European citizens, respectively.”

CDL Testing Days Expanded in Texas in Effort to Ease Shortage of New Truckers

November 25, 2021 by Levinson and Stefani Leave a Comment

Truck driver license testing will be expanded to six days a week in Texas as a manner of addressing the current countrywide truck driver shortage. This shortage has further exacerbated the already-stretched-thin supply chain that has been hit by pandemic-related obstacles and the boost in e-commerce that came along with stay-at-home orders and exponentially high online shopping numbers.

According to the Department of Public Safety, those looking to receive a new commercial driver’s license or renew an existing one have been able to take the necessary test over three Saturdays in November within certain state offices.

“TXTA applauds DPS for opening CDL office locations for three Saturdays in November for CDL transactions only,” said John D. Esparza, President and CEO of the Texas Trucking Association. “The ongoing lack of commercial driver license drivers combined with the backlog of CDL appointment times contribute to the driver shortage and as a result, the supply chain challenges we are experiencing.”

Until now, these commercial driver license tests were only available between Monday and Friday.

“We’ve all seen reports, or personally felt the impact, of the severe strain our supply chain is currently facing,” said department director, Steven McCraw. “By adding CDL services at select offices, we can get more qualified commercial drivers out on the roads to move more goods to Texans across the state and help meet the demand.”

Although adding these testing days will allow for more drivers to receive their commercial licenses–especially for applicants who are unavailable to take the test during the week, the priority should be on welcoming the safest and most highly-trained truckers into the industry, noted Levinson and Stefani’s Jay Stefani.

“Trucking companies need to find new drivers, and that’s great, so long as they’re hiring safe, qualified, and experienced drivers,” he said. “Extending CDL office hours is a way to make sure nobody is rushing these new drivers through testing. Nobody wants a trucker on the road that was hurried through the licensing and testing process.”

Luckily, some improvement initiatives within the trucking industry are also helping to address the shortage, and driver training schools have seen increased enrollment numbers lately. Some industry experts believe this change is due to the amount of positive public attention that has been centered around truckers and their efforts during the pandemic era.

Additionally, a pilot program to allow younger drivers to become qualified to drive interstate trucking has been incorporated into President Joe Biden’s $1 trillion infrastructure bill, as well. This initiative will likely help these young drivers to be trained and hired more easily than ever.

“I think this is a step in the right direction,” said Jeremy Reymer, founder and CEO of DriverReach. “If the data proves young people can drive [safely], even [more safely] than their counterparts who are over 21, I think it will lead to a longer-lasting federal rule, but that may be five or 10 years down the road.”

Still, incentivizing qualified drivers to enter the trucking industry is requiring a lot of extra effort from trucking companies–something that will continue into 2022.

“In this market, unless you’re a top-tiered paying company and your drivers are going home every day, it’s going to be a challenge,” said vice president of driver recruitment at Roehl Transport, Tim Norlin. “There is no silver bullet. We’re all short [on] drivers, and there are not enough coming in.”

Roehl has increased its drivers’ wages to over $1,400 a week–a considerable increase to $72,000 a year from 2020’s $59,800 a year–in an effort to entice more truckers to join the company.

“All we are doing is chasing each other’s drivers with higher cents per mile, a bigger sign-on bonus, more paid time off,” Norlin said.

Recruiting military veterans into the industry (around one-quarter of all current trucker drivers are veterans) will also be helpful for the industry as a whole in addressing the long-running shortage, according to the vice president of business development for Veterans in Trucking, Matt Roland.

“We want trucking companies to identify the military veteran population,” Roland said, “and we want to connect the veterans to trucking companies, and we want to ensure those trucking companies have the resources available to hire these veterans.”

Supply Chain Challenges Rage On, Bringing Added Pressure to Truckers Ahead of Holiday Season

October 29, 2021 by Levinson and Stefani Leave a Comment

“What we have is a storm within a storm,” said Logistics Professor at the University of Houston, Margaret Kidd. “Consumers have insatiable demand, and consumers are spending. E-commerce numbers through the second quarter of this year are up 57% from two years ago.”

The current supply chain is being stretched thin–with pressure being exacerbated by the e-commerce boom brought about by the pandemic. Significant policy updates are needed, industry experts say, as well as as innovations by transportation leaders, time, and money.

The upcoming holiday season is going to add further difficulty when more shoppers are hitting the internet and exponentially increasing demand.

“We don’t have an infrastructure that was prepared for this,” said Terry Esper, Logistics Professor at Ohio State University. “This is not just a holiday thing. This is not just a demand spike thing. This is about the economy being able to function.”

Of 2018’s retail sales, Esper noted, e-commerce represented about 13.8%–a figure predicted to grow an additional 26% by the year 2025.

The current truck driver shortage, on top of a warehouse and transportation industry labor shortage of about 490,000 employees, according to the U.S. Department of Labor, is adding additional stress to the situation.

“These are not easy jobs to fill,” said Mark Baxa, President of the Council of Supply Chain Management Professionals. “Let’s continue to find ways that make work-life balance as favorable as possible, and we’ll attract more people to the industry. We need to improve work-life balance, support driver health, and [improve] work conditions and compensation. We need to keep working at it.”

Enticing more workers to enter the transportation industry also means that further cost increases will come into play–more companies will need to boost spending on not only employee salaries and benefits, but on technology as well.

“Part of our supply chain constraint is labor,” said Esper. “If you want access to labor, you’re going to start to have to look at what you pay. We also need to look at technology, and now is the time to consider more investments in more automated operations, robotics, and such. There is a business case for this, and the writing is on the wall.”

With these shortages on top of an incredibly aggravated supply chain in the midst of a higher-than-ever e-commerce demand, the truck drivers that are stepping up to serve the public during this time will be put under enormous pressure by consumers and trucking companies alike.

“I understand the pressures, economic and otherwise, of labor shortages and supply chain issues, but we have to be very conscious and deliberate to not let that get in the way of safety measures,” said Levinson and Stefani’s Ken Levinson. “We also want to make sure that we’re not letting outside influences put pressure on companies and drivers to do things that aren’t safe, even with these added pressures that we have right now. It’s just not worth the risk.”

Because of this, Levinson wants to be sure that all passenger drivers are staying as defensive and aware as possible while sharing the road with commercial motor vehicles–especially during the holiday season.

“Just be aware and follow all the safety rules–especially in regards to speeding,” he said. “Don’t be a distracted driver, and be very careful of improperly using your phone. If you have to use your phone, make it hands-free–don’t, under any circumstances, text while driving. The consequences can be devastating. It’s hard enough to drive safely in normal circumstances, but if you add speeding or distracted driving or texting, and even inclement weather during the holidays, it’s just a recipe for disaster.”

Of course, these are all suggestions we hear often as drivers, but it’s vitally important that we do what we can to stay as safe as possible around these truckers who could be rushing to make a delivery on time, or who may be fatigued after spending incredibly long hours on the road.

“Your own vehicle could be in a tough spot with all those factors,” added Levinson, “and when you couple it with a truck driver who may be overworked, tired, unhealthy, speeding, and distractedly driving or using a phone–it could be catastrophic.”