What’s Behind the US Trucker Shortage?

1. Deregulation
2. Labor Shortage or Something Else?
3. Drivers leaving the industry
4. Job demands
5. Lack of women in the industry
6. Challenges Entering the Industry
7. Increase in Freight Movement
8. Transformed demand
9. Increase in e-commerce
10. Increased Cost of Running Vehicles
11. Potential Solutions
12. Higher pays
13. Reduce driver-age restrictions
14. More female drivers
15. Immigrant drivers
16. Conclusion

An estimated $671 billion worthof manufactured and retail goods are delivered by truck in the United States each year. Therefore, trucking accounts for over 70 percent of all the nation's freight needs.

The so-called truck driver shortage is undermining this effort and causing serious supply issues across the country. So what's causing the truck driver shortage?

The simple answer to America's dire trucker situation is a lack of professional truck drivers. But it's not exactly what you think. There's a complex array of factors contributing to the truck driver shortage.

At the top of the list is the sky-high turnover rate of transport company drivers who are unable to cope with poor working conditions.

Want to really understand what's causing the US trucker shortage? Here's a comprehensive breakdown of the main contributing factors.

Deregulation

Trucking used to be one of the most reliable and well-paying careers out there. But post-1980s industry deregulation, everything changed. From an industry of licensed transport companies given controlled access to routes, truckers today are essentially gig workers.

Truckers now earn lessthan drivers of the 1970s. With the loss of union representation, competition rose, and wages fell.

The reformation of the industry means individual drivers are shouldered with the risks of long-haul driving and the burden of running costs.

Additionally, drivers who lease company vehicles are locked into financial arrangements that effectively prohibit them from leaving.

When a driver resigns due to exhaustion, illness, or other factors, the company can typicallyrepossess their truck and whatever they invested in buying it.

Labor Shortage or Something Else?

While a shortage of truckers is blamed for everything from your late Amazon delivery to fuel shortages, the reality is complex.

According to the American Trucking Association, there were 3.36 million truck drivers employed in 2020. And each year, up to 450,000 new commercial driver's licenses are issued by various states.

So with millions of truck drivers available, why the shortage of drivers?

Drivers leaving the industry

While there are plenty of qualified truckers, the terrible working conditions often make the job unsustainable.

Some cite the typical turnover rate for trucking companies at a staggering 95 percent. That means replacing almost all staff with new potential workers within a year.

So what's causing the shortage of long-haul truckers?

Job demands

Drivers entering the industry are soon confronted with the realities of hauling goods on strict timelines. The list of poor working conditions for truckers extends beyond reason for many employees:

• While traveling for about 300 days a year, many truckers put in 60 to 70 hours each week, including time spent waiting to load and unload.
• The hours away from home often destroys marriages and other family relationships.
• The lack of toilets, showers, and safe sleeping zones makes the job even more uncomfortable and risky.
• Hours driving and poor access to fresh food take a toll on health.
• Companies often charge their independent contractors exorbitant prices for truck leases, insurance, and fuel.
• Some companies charge extra for access to car parks and toilet facilities.
• Since many drivers are paid by the mile, they frequently aren't paid for the first two hours of cargo loading or unloading.
• Dangerous roads and poor working conditions make the job deadly, with truckers at ten times the risk of death at work compared to other US workers.

Lack of women in the industry

With the harsh ingrained conditions of the trucking industry, it's not surprising that female drivers are poorly represented. Less than seven percent of US truckers are women.

This does not mean women are averse to the industry. In fact, there has been an increase in women working as truck drivers. It has prompted companies to encourage more women as potential drivers, including as long-haul truck drivers in the industry.

However, there remain many barriers for women in long-distance driving jobs, most notably chronic sexism, and sexual harassment.

Challenges Entering the Industry

Most new drivers obtain commercial driving licenses (CDL) through programs run by large, self-insured long-haul trucking companies. That's because new drivers are expensive to insure.

Therefore, drivers commit to contracts with these companies in exchange for CDL fees.

The process for apprentices to qualify as drivers after obtaining commercial licenses also benefits companies. Most newly licensed drivers must be paired with professional truck drivers to learn on the road.

Federal laws state truck drivers are only permitted to travel 11 hours straight after a 10-hour break.

Therefore, adding a trainee driver entitled to a lower pay rate saves the company money. It allows companies to use two drivers at an economical rate to haul freight half as long as it would take a single driver.

Some transport companies stand accused of leveraging the constant cycle of beginner drivers. Lower rates of pay and poor conditions mean quick turnover, but these drivers are quickly replaced.

Increase in Freight Movement

While the Coronavirus pandemic initially disrupted supply chains and transport requirements, recent months have seen sustained freight demands.

Transformed demand

From a drop in the delivery of entertainment equipment, a hit to commercial food deliveries, and a scarcity of vehicle parts, COVID-19 impacts reverberated throughout the trucking industry.

Here are some of the main effects related to transport demands and the shortage of truck drivers due to the pandemic:

• Drivers became ill from the virus, reducing the transport labor force. Many drivers were put at risk from Covid-19 and its effects while far from home.
• Drivers became more isolatedby pandemic shutdowns, such as restaurant closures, meaning rare opportunities for socializing were suddenly unavailable.
• Food industry delivery trucks lost significant business during lockdowns.
• Many automotive manufacturers temporarily closed, causing a shortage of parts.
• The shutdown of malls and shopping centers initially caused an enormous decline in transportation needs.
• The impact on supply chains from the high demand for freight amid the workforce deficit caused mass shortages of goods.

Increase in e-commerce

Lockdowns saw e-commerce flourish as citizens turned to online shopping en mass. This trend has brought a wide range of opportunities and challenges for transport companies.

The expansion of e-commerce has a direct impact on some of the most pressing problems facing the trucking business, including driver shortages and driver retention rates, driver health and wellness, and hours of service.

For example:

• Companies like Amazon have built warehouses and fulfillment centers in metropolitan locations due to the public's increased expectation of rapid delivery.
• Last-mile and intra-regional truck journeys increase alongside the growth of fulfillment centers.
• E-commerce demands see companies like Walmart paying almost double the industry average wages for new drivers. Coupled with better working conditions, this encourages an exodus of drivers from long-haul routes into more secure and worker-friendly arrangements.
• The increase in associated jobs such as warehouse and sales positions gives more opportunities for truckers seeking to exit the industry altogether.

Increased Cost of Running Vehicles

Any change in the price of fuel is significant news because the diesel fuel needed by trucks is one of the truckers' largest expenses. Large semi trucks' fuel tanks have a capacity of 300 gallons of diesel fuel.

The spike in gas prices significantly affects driver incomes. Plus, individual drivers are impacted by increasing insurance, and maintenance costs. The general rise in prices of vehicle insurance greatly impacts the trucking industry since heavier vehicles usually attract a higher insurance cost.

Potential Solutions

Clearly, the transport industry is a challenging environment for workers. What incentives could help keep truckers on the road and support their future in trucking?

Higher pays

According to the Bureau of Labor Statistics, the median annual wage for truck drivers was $48,310 in 2021. This falls short of the national average salaryacross all industries.

Therefore, truck driving jobs are not only physically demanding but also come with long hours and low pay.

Increasing trucker wages is potentially an important aspect of improving the retention rates of experienced truckers. However, it is not the only factor that needs to be considered. Addressing the sub-par working conditions is an urgent consideration.

Reduce driver-age restrictions

An apprenticeship program for young aspiring truck drivers is already being established. It means drivers as young as 18 years old will be permitted to drive large rigs across the US.

However, safety activists are against the initiative because it puts untrained, potentially dangerous drivers in charge of some of the largest, heaviest vehicles on the road.

Alternatives to this strategy include increasing wages and shortening driving hours which could incentivize experienced drivers to stick with the long-haul trucking industry.

More female drivers

Encouraging women in the trucking industry has enormous potential for boosting driver numbers. However, there are significant barriers to women being able to work safely as long-haul drivers.

These issues include sexual harassment, poor access to hygienic restroom facilities, and a male-dominated workforce.

The Women In Trucking organization aims to address many of the barriers to women working as truck drivers. It offers advice and guidance to female drivers on how to enter the industry and discover safe working arrangements.

The initiative encourages team driver partnerships comprised of partners, or friends, to share the driving hours, life on the road, and compensation. This allows greater safety, companionship, and the opportunity to split the driving responsibilities.

Immigrant drivers

To address the shortage of truck drivers, some transport companies advocate turning to immigrant workers as potential drivers to bolster the trucking workforce.

A provision for foreign workers to be employed in the industry exists via the H-2B Temporary Workers visa. The H-2B visa enables US employers or agents to bring immigrant workers to the country to work in non-agricultural roles.

However, according to Bureau of Labor Statistics data from 2020, immigrants account for 18.6% of truck drivers. This means migrant workers are already overrepresented in the profession.

The fact that there are sufficient commercial driver's license holders available in the US shows better conditions, rather than a new workforce is required.

It is unethical to assume a foreign driver should endure poor wages and unacceptable working conditions any more than American workers.

Conclusion

The severe shortage of truckers causes issues for the nation's entire supply chain. While calls to increase female, younger, and immigrant drivers continue to gain traction, this fails to address the ingrained issues affecting driver retention rates.

Concerns of future shortages and high consumer demand for rapid delivery continuously add pressure to the industry. But commercial truck drivers are similar to other workers in desiring a sufficient minimum wage and secure and safe working conditions.

In an industry undermined by employee upheavals, be sure to go with transport operators you can trust.

A1-Auto Transport has clocked up more than 33 years of reliable delivery services. Contact us to safely fulfill all of your transport needs, from cars to boats to your whole household.