Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in truck drivers

Today we received some unexpected good news in the United States as the unemployment rate fell to 8.6%.  In Canada the news wasn’t as good as the unemployment rate increased to 7.4 percent.  Without counting those people who have given up looking for work or who are underemployed (e.g. performing a job below their level of expertise and education at a wage inferior to what they should be earning), there are about 14 million people unemployed in North America (e.g. 13.3 million in the United States and 1.3 million in Canada). 

FTR Associates estimated that there was a shortage of 200,000 drivers in the United States in the first quarter of 2011.  How does one explain the fact that out of a pool of 13.3 million unemployed people (plus millions more if you include those who are underemployed), we cannot find 100,000 to 200,000 individuals to fill these jobs?

Here are some thoughts on this apparent anomaly.  There were 3.2 million commercial drivers in the United States in 2008, including 1.8 million heavy haul or tractor-trailer drivers, according to the U.S. Labor Department.  By May 2010, the number of big rig drivers had dropped 18.4 percent to about 1.5 million.  In other words, there are 300,000 drivers that left the labour force that should be available to fill the available jobs.  Why is it so hard to convince them to come back to work?

One of the most frequently mentioned reasons is compensation.  In the United States, experienced truck drivers can make $50,000 a year at some truckload carriers.  According to a BLS survey, the average wage was $39,450 in 2010 while the median wage was $37,770.  The survey indicated that 75% earn less than $47,000 per annum. 

The trucking industry has a long term practice of paying its drivers by the mile.  While there is certain fairness to this approach since it correlates directly with the amount of miles driven and hours worked, it also injects a level of uncertainty into the driver’s weekly pay package.  Inconsistent load availability translates into inconsistent pay. 

...
Hits: 15223
0
Continue reading 0 Comments

Most Recent Posts

Search


Tag Cloud

Derek Singleton freight cost savings shipper-carrier roundtable Broker Toronto Yield Improvement freight rate increases buying trucking companies Blockchain CN ProMiles TMP Worldwide selling trucking companies US Economy Grocery freight payment freight audit 360ideaspace economy bulk shipping freight forwarders derailments RFP US Election Crude Oil by Rail Schneider Logistics ELD risk management Associates Canadian Transportation & Logistics Donald Trump Freight Shuttle System Harper Davos speech Freight Rates 2014 freight forecast freight agreements Outsourcing Sales Retail transportation Success failure entrepreneur driver shortages Scott Monty CSX Rotman School of Business marketing Blogging Map-21 Dan Goodwill Colilers International FCPC Comey Packaging transportation audit Truckload Muhammad Ali shipping David Tuttle 3PL dimensional pricing the future of transportation Rate per Mile Microsoft BlueGrace Logistics home delivery Cleveland Cavaliers shipper-carrier contracts Canada-U.S. trade agreement YRC cheap oil peak season Failure freight bid freight transportation in 2011 Ferromex BNSF Climate Change Life Lessons Software Advice 2014 freight volumes Freight Capacity FCA small business Doug Nix Rail Education truck drivers customer engagement Canada U.S. trade LinkedIn Transplace Crisis management Freight Recession Dedicated Contract Carriage solutions provider freight RFP Business skills Bobby Harris trucking company acquisitions robotics Regina Loblaw supply chain management coaching Freight Carriers Association of Canada Deferred Packaging Accessorial Charges online shopping Training New Hires capacity shortage Global Transportation Hub Consulting FMCSA CRM Canada Retail TransForce Load broker freight costs Leadership driverless Freight Management Freight contracts University of Tennessee USA Truck Business Strategy mentoring consumer centric MBA Railway Association of Canada Fire Phone Freight US Manufacturing CP Rail Omni Channel Masters in Logistics Surety bond MPG broker security natural disasters Swift freight transportation conference 2013 Economic Forecast President Obama Success freight transportation Adrian Gonzalez drones CSA scores Trucking CN Rail FMS Social Media in Transportation Whole Foods Canadian truckers Business Transformation Strategy Twitter Entrepreneur LCV's Transloading capacity shortages Social Media Horizontal Supply Chain Collaboration IANA Wal-Mart Dedicated Trucking Canadian economy future of freight industry last mile delivery dynamic pricing 2014 economic forecast NCC transportation newspaper Freight Matching energy efficiency Celadon financial management Warehousing Driving for Profit trade NS carrier conference Trump shipper-carrier collaboration ShipMax New York Times $75000 bond Transport Capital Partners (TCP) Finance and Transportation Right Shoring pipelines shipping wine intermodal Amazon economic forecasts for 2012 Career Advice 2015 Economic Forecast Keystone Pipeline 3PLTL Carriers Facebook EBOR TMS business start-up CITA Shipper Pulse Survey broker bonds US Housing Market Tracy Matura Stephen Harper Trade Vision technology Hudsons Bay Company freight payment LTL Werner FuelQuest Transportation Buying Trends Survey Load Boards hiring process Transcom Fleet Leasing Distribution Otto freight audit Sales Transportation KCS home delibery tanker cars CSA truck driver Inbound Transportation Canada's global strategy Training NMFC Infrastructure driver JB Hunt Search engine optimization 2012 Transportation Business Strategies. Jugaad network optimization fuel surcharge UP Management US Auto Sales Shipper Conway professional drivers Politics Transportation service Spanx automation Reshoring employee termination Emergent Strategy freight broker Doug Davis autonomous vehicles e-commerce Job satisfaction transportation news routing guide NAFTA rail safety Driver Shortage APL Sales Management Global experience Canadian freight market Sales Training

Blog Archives