Several years ago, the transportation industry experienced abundant capacity, and carriers competed for a shipper’s network of freight. Although many shippers worked to maintain good working relationships with carriers, with this surplus capacity, many others overlooked this need. After a number of significant developments, such as tighter federal regulations and the driver shortage, carriers are now extremely selective in choosing shippers who can help ensure driver retention. This reality will only get worse, so the question is, are you doing what is necessary to ensure finding trucks when the industry faces even greater restraints?
Then vs. now
The transportation industry has certainly evolved over the course of 20 years. Some changes and regulations have benefited the industry, while others have resulted in unexpected burdens. After the deregulation of trucking in the early 80s, the job opportunities in commercial transportation skyrocketed. In the 1990s, the average truck driver salary stood at $26,000, with 75% of all consumer products being transported by truck. Today, The U.S. Bureau of Labor and Statistics reports that the average annual salary for truck drivers is $40,000. Although salaries have improved, what happens when a company loses a driver? According to TransForce, a truck driver staffing agency based in Alexandria, Va., carriers spend on average $5,000-$6,000 to recruit new drivers. To make matters worse, the American Trucking Association, Arlington, Va., predicts a driver deficit of at least 175,000 by 2024.