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: 15282
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

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

Blog Archives