The Impact of the Truck Driver Shortage on Shipping

There is a deficit of 80,000 truck drivers in the USA alone, according to the American Trucking Associations (ATA). The ATA estimates that by 2030, this number will rise to 160,000; by 2040, it will reach 400,000.

The impact of this shortage on shipping companies has been significant. This article provides an overview of the current state of the truck driver shortage and its effect on shippers. It also highlights some of the solutions being applied to address the problem.

What Are the Causes of Truck Driver Shortage?

Aging workforce

According to the ATA, the average age of truck drivers has increased from 40 years old in 2000 to 55 years old in 2021, and few young people want to become truck drivers. In addition, many older truck drivers have retired or moved on to other jobs, leaving a considerable gap in the workforce.

There aren't enough new truck drivers entering the workforce to replace those who retire or leave. As a result, companies are having trouble finding qualified drivers to fill positions.

Health concerns

The sedentary nature of driving trucks can lead to health concerns such as obesity, heart disease, diabetes, etc. These conditions can be exacerbated if truck drivers do not get enough exercise while working long hours.

Truck drivers have no option but to rely on gas station stores for junk food that they eat during their breaks. Unfortunately, a poor diet increases the risk of lifestyle disorders, including diabetes and cardiovascular diseases.

Because many drivers care about their health, they often take time off work when they feel sick, and many resign because they cannot afford to continue working with poor health.

Reduced interest in long-haul trips

Long haul projects require many truck drivers to spend more time away from their homes and families. Unfortunately, they miss out on family life and social activities. As a result, many truck drivers prefer short-haul projects where they only need to drive a couple of days before returning home.

The rising number of interstate drivers is attributed to a growing desire for older and experienced drivers to avoid long-haul trips, which most 18-to 20-year-old drivers would gladly embrace.

COVID-19 pandemic

The pandemic caused a supply chain crisis due to the lockdown and other federal government measures. The need for freight transportation services decreased as a result.

There was an overall decline in freight volumes and trucking rates, which had a ripple effect on the number of truck drivers. As a result, shippers were forced to cut back on their operational costs by laying off workers.

The Impact of the Truck Driver Shortage on Shipping

The truck driver shortage has had a significant impact on logistics companies. Here's how it affects them:

Shipping delays

The reduced availability of truck drivers makes the few remaining drivers carry large amounts of cargo, so they must make frequent stops for deliveries. In addition, spending extended periods on the road disrupts delivery schedules, so the consignees often do not receive their cargo at the expected times.

Increased cost

Companies are offering higher pay and better benefits to attract new truck drivers. However, this comes at a price.

Not only are trucking companies paying their drivers more in wages and benefits, but they are also increasing their spending on recruiting and training new employees.

Higher rates

Any extra costs incurred by shippers are transferred to the consumer. The increase in trucking companies' operational costs translates to higher consumer pricing. The consumer will now pay more for goods shipped via trucks.

Loss of business opportunities

Due to the truck driver shortage, shippers have less capacity. This results in fewer shipments, leading to lower revenue for the shipper.

For example, if a company ships 10,000 units per day, but the truck driver shortage reduces its capacity to 5,000 units per day, the company loses 5,000 units per day in revenue.

Decreased client satisfaction

When customers' expectations are not met due to increased pricing and shipping delays, they feel frustrated and disappointed with the company. This can affect the trucking company in the following ways:

• Loss of customer trust: Customers lose trust in the company when their expectations are not met. They may choose to use another shipper.
• Reduced loyalty: If consumers do not get what they want from the company, they will be less likely to do business with the company again.
• Increased complaints: When clients are dissatisfied with their service, complaints about the business rise.
• Decreased referrals: When customers have negative experiences with a company, they will tell others about it. This could lead to a loss of business.
• A decline in reputation: Bad customer reviews can damage a company's reputation.

How Can Shippers Combat the Effects of the Truck Driver Shortage?

The truck driver shortage is real. Unfortunately, it's a problem that has been growing for years, and it's only getting worse. The good news? There are ways you can prepare yourself for the effects of this looming crisis. Here are some tips for shippers:

• Develop an accurate forecast of future needs: It's essential to understand how much freight you'll need over the next year. You should also know how many drivers you'll need to meet these demands.
• Be flexible: If you don't have enough drivers to handle all of your expected volumes, you'll need a plan B. Be ready to make adjustments as needed. For instance, you might need to hire temporary workers or contract additional drivers.
• Increase hiring efforts: If you haven't already done so, start looking into ways to recruit more qualified candidates, for example, hiring managers who specialize in recruitment. Also, consider advertising for driver positions online.
• Train existing staff: You should train your current drivers to help them handle the increased workload. Training takes time, but it's well worth it.
• Consider using technology: Technology can play a big role in helping you manage the truck driver shortage. For example, you can use software programs to track shipments, assign jobs to drivers, and even schedule pickups and deliveries. This can lead to cost savings.
• Get creative: Sometimes, it helps to think outside the box. For example, consider partnering with other companies to share resources. For example, you might collaborate with a nearby university to offer internships to students. Or, you might work with a logistics provider to coordinate delivery times.

Increase driver pay

Truck drivers are precious assets to any transportation company. However, many people have been shunning the profession because of its low pay.

In actuality, the average yearly salary for commercial truck drivers is $50,000, according to the Bureau of Labor Statistics (BLS). This is lower than most occupations, including registered nurses ($80,000) and police officers ($60,000).

However, there are several things you must be willing to do as a shipper to help improve the situation and attract and retain drivers:

• First, offer competitive rates. Second, give drivers better benefits like health insurance.
• Third, allow drivers to earn overtime (especially for long-haul jobs).
• Fourth, invest in training programs to help fill the gap left by the lack of qualified drivers.

Target minorities, women, and veterans for driver positions

You should look at recruiting minorities, women, and veterans, who tend to be underrepresented in the American shipping industry. If you want to attract and retain quality drivers, you should consider implementing these suggestions in your hiring practices:

• Offer a higher starting salary to minority applicants.
• Provide mentoring opportunities for minority employees.
• Make sure your company is accessible to everyone, regardless of race, gender, sexual orientation, religion, disability status, etc.
• Establish a culture of appreciation for diversity in the workplace.

The above initiatives may cushion you when the shortage overwhelms your competitors.

Use self-driving trucks

Autonomous trucking technology is a sure way to attract young, tech-savvy drivers to the profession that is thought to be macho and dirty. However, to entice and retain young drivers, shippers must adjust to this technology to remain afloat.

Because of the shortage of drivers, they experience stress and fatigue. Autonomous driving allows the drivers to rest or eat without worrying about safety. The human driving gap is well taken care of by autonomous driving.

Offer flexible hours

Long-haul trucks are avoided by many drivers because they dislike staying many days away from their homes and families. Additionally, they dislike the job's long hours and high level of risk.

To keep your drivers happy and motivated, here are some tips:

• First, offer flexible schedules so your drivers can work around their commitments.
• Keep your drivers informed of upcoming changes to their schedules.
• Increase your fleet size to reduce the number of drivers needed per shipment.

Use shipping technology

Freight aggregators use software to track shipments, which allows you to get a clear picture of what's happening with your shipments. You can make decisions more quickly and effectively as a result. This software can even keep tabs on your drivers' performance.

If you're using an online platform, you can use it to communicate with your drivers in real-time, which is especially helpful if you have multiple locations.

Another helpful tool is load boards. Load boards allow you to see what loads are coming in and out of your location, giving you a better idea of how much freight you'll have to move over the next month.

The use of technology helps you to plan accordingly to combat the driver shortage. Online platforms bring efficiency, saving time and costs for your company. Your clients will enjoy the benefits of faster deliveries, better customer support, and lower prices, which will put you ahead of the competition.

Choose reliable carrier partners

To survive the truck driver shortage, shippers must choose carriers that offer good quality service at competitive rates. Here are some attributes of a suitable carrier partner:

• Reliability - A reliable carrier partner has been in business for years and knows how to provide excellent services.
• Stability - A stable carrier partner provides consistent pricing and offers timely payments.
• Experience - Choose a carrier partner that has been in business for an extended period and understands the industry's challenges.
• Reputation - Choose a carrier partner with a solid reputation among rivals.
• Incentives - Ask your carrier partner about incentives such as discounts
• Track record - Check the history of your carrier partner before signing any contracts.

Wrapping up

The trucking industry is experiencing a severe driver shortage problem. To overcome this, shippers need to adopt new technologies and strategies. By embracing short-term and long-term strategies, you can help cope with the shortage and ensure safe and efficient transportation.

For more than 30 years, A-1 Auto Transport has been transporting vehicles domestically in the USA and abroad, including cars, trucks, motorbikes, freight, heavy machinery, household products, and more. We offer all of our clients dependable, professional shipping solutions.

Please contact us today for a free quote.