The ata forecasts a shortage of 160,000 drivers by 2020. Since 2005 the american trucking associations ata has been releasing reports on the driver shortage. The driver shortage has been one of the primary reasons blamed for the lack of freight shipping capacity. Meanwhile, the turnover rate in lessthantruckload ranges between 5% and 22% normal for bluecollar, said burks. Is americas trucking industry facing a driver shortage. Discussions about truck drivers often focus on whether there is a driver shortage in. Since the focus on reducing the capacity crunch lies in addressing the driver shortage, the simplest solution will be attracting more drivers. Transportation industry trends 2020 hub international. The economy overall appeared solid, diesel fuel was cheap, ecommerce was growing and the dow jones industrial average had broached 29,000. Driver shortage has forced many carriers to make the position more attractive with higher wages and additional benefits.
Truckload rates in the us set to skyrocket in 2020. While this lack of drivers is cause for concern, some question whether shortage. Unfortunately, full truckload drivers lack a point of entry that does not require a cdl. The american trucking associations has long said there s a severe driver shortage, driven by factors such as demographic changes and an overall tight work force.
Large truckload carriers are particularly concerned about the truck driver shortage, as they face turnover rates of 96%, while smaller companies sit at 79%. Truck driver shortage on course to double in a decade fleet owner. New ata report takes long look at the state of the driver. Fleets were hoping to make progress in 2020 against industryspecific problems such as the driver shortage. When the shortage was first widely reported in 2018, some experts, including officials at the department of labor, suggested that there wasnt actually a truck driver shortage, and that the. Bigrig truck driver shortage worsened by coronavirus marketplace. Even so, trucking companies, especially truckload carriers, often have great difficulty finding, hiring and keeping drivers. The realities of being a truck driver in 2020 is it still worth it. The ata is the largest national trade association for us truck carriers. Holland anticipates gaining more than 350 new truck drivers through its new apprentice program by 2020. Trucking industry struggles with growing driver shortage. Labor department analysis questions driver shortage. Covid19 and truck driver shortage may threaten food supply.
The global covid19 pandemic has only made it harder to fill a truck driver shortage. Theres already a shortage of bigrig truck drivers, and the pandemic may make it worse jasmine garsd apr 10, 2020 the global covid19 pandemic has only made it harder to fill a truck driver. As a whole, the market for truck drivers appears to work as well as any other bluecollar labor market, and while it tends to be tight, it imposes no. Trucker pay is up 15% amid driver shortage supply chain dive. Their formula for calculating the size of the shortage is a function of all freight needing transport per year, compared to the optimal number of drivers.
In 2019, the industry was short approximately 60,800 drivers, according to the american trucking association. Vieth said the industry has added about 2,000 drivers this year and suggested forecasts indicating the industry will see a driver shortage of upwards of 160,000 people over the next decade a. Ata released the latest examination of the driver shortage in july 2019. Freight rates will likely continue to increase in 2020 as major online retailers like amazon internalize their fleets of truck drivers, the labor shortage in the trucking market has become even more acute. Ecommerce, the capacity crunch, the driver shortage, general rate increases, fuel costs, trade war read more. The average driver age is rising, regulations are changing, drivers are accepting nontransportation job. Sunny forecast for carriers as long as ltl carriers remain disciplined on capacity additions, and the u. Holland launches apprentice program to bring in ltl truck. In the first quarter of 2019, the turnover rate at large truckload fleets was 83 percent, according to the american trucking associations. There will be layoffs during the economic downturn brought about by covid19, but trucking hr canada continues to sound the alarm about a truck driver shortage. In spain, the acute shortage looks set to escalate in the coming years, with irus figures showing demand for drivers is set to increase by 18% by 2020, the iru said in a statement.
We saw double digit gains in the annualized turnover rate for both small and large truckload. Ltl shipping news less than truckload shipping news. News pertaining to the transportation and logistics services provided by ltl less than truckload shipping or less than load ltl carriers, which transport relatively small freight. Covid19 and truck driver shortage may threaten food. The truck driver shortage in 2020 the dirty truth no one. Qualified drivers, not the quantity of drivers, is the real issue, which the study does not address. The challenge of finding and retaining good truck drivers is nothing new to truckload carriers, but the driver shortage is now having an impact on lessthantruckload and intermodal operations as. Freight rates will likely continue to increase in 2020. New ata report takes long look at the state of the driver shortage while it is true that 2018 marked what could be described as a boom year for the freight economy, a new report issued this week by the american trucking associations ata revealed that the trucking sector needed 60,800 more forhire overtheroad truckload drivers.
Arlington, virginia the turnover rate at truckload carriers surged in the second quarter of the year, a sign that the market for drivers is quickly tightening, according to american trucking associations chief economist bob costello. The united states truckload market dealt with capacity issues throughout 2019, mainly due to the pending arrival of new trucks ordered the previous year. Nearly every period of economic growth is accompanied by a driver shortage. But costello said that does not consist solely of overtheroad drivers, where the problem lies. The study also does not take into consideration the long hours that a truck driver is away from home, which is also a significant reason for the shortage. This will also push drivers with less experience into higher demand, due to the driver shortage.
The challenge of finding and retaining good truck drivers is nothing new to truckload carriers, but the driver shortage is now having an impact on lessthan truckload and intermodal operations as. Parcel industry news is there really a driver shortage. What steps is the trucking industry taking to end it. Freight waves had some interesting commentary on this. In other words, they start and finish at the company as drivers. Less than truckload ltl freight hourly rate get a free salary comparison based on job title, skills, experience and education. While the shortage of overtheroad truckload drivers nationwide is now hovering around the 52,000 mark, that number could more than quadruple by 2025, according to thomas balzer. Is the truck driver shortage really as bad as it seems. Factors that are contributing to this crisis include both an aging driver population and a lack of new entrants to the industry. In an apparent reaction to driver shortage concerns, trucker pay is on the rise, according to data from the american trucking associations ata driver compensation study. Driver shortage the only business resource dedicated to. Their formula for calculating the size of the shortage is a function of all freight needing transport per year, compared to the optimal number of drivers required to move that freight. While longhaul truckload sector has experienced high and persistent turnover rates for decades, the overall picture. The department of labor lists 864,000 drivers as forhire trucking heavy and tractor trailer drivers.
During the past 15 years, the trucking industry has struggled with a shortage of. Most ltl carriers still feel a driver shortage and have implemented programs to start recruiting younger folks from the dock to drive straight. The dirt no one wants to talk about smart trucking. Trucking ceos, economists settle debate on the truck. Truck driver shortage on course to double in a decade. Truckload turnover surges in second quarter american. Atas driver shortage report 2019 american trucking associations. Bigrig truck driver shortage worsened by coronavirus. Atas costello projects out the driver shortage, and its. A driver shortage has been lingering over the supply chain industry for many years. But costello said that does not consist solely of overtheroad drivers.
The term driver shortage gets thrown out by the powers in the industry to explain nearly every major problem or issue that our. As a whole, the market for truck drivers appears to work as well as any other blue collar labor market, and while it tends to be tight, it imposes no. As the pandemic persists, labor shortages in transportation and other areas of the food industry could prove to be a. The truck driver shortage in 2020 the dirty truth no one talks. Coupled with recruitment into the industry stalling, this means the driver shortage. Less than truckload ltl freight hourly rate payscale. The truck driver shortage in 2020 the dirty truth no one talks about. The elephant in the room continues to be a shortage of drivers. Ltl carriers see slower growth, but economic outlook. As major online retailers like amazon internalize their fleets of truck drivers, the labor shortage in the trucking market has become even more acute. It seems that more cdl drivers are aging into retirement or opting for only local ltl.
Most recently the ata estimated that the trucking industry ended 2018 with a shortage of more than 60,000 truck drivers. As you can guess, there are differences depending on the mileage and the prior experience of each ltl truck driver. Factors that are contributing to this crisis include both an aging driver. Freightcenter continues to deliver the lowest prices from our fleet of vetted carriers for our truckload and ltl shippers. Covid19 and truck driver shortage may threaten food supply chain. Changes in technology, sentiment analysis and global sourcing will solve the problem. No container or straight truck or trailer moves without, at some point, a truck driver. Labor dept dont believe media on trucker shortage fleet owner. The alternatives to ltl carriers are parcel carriers or full truckload.
The cold hard facts reveal that the demand for qualified truck drivers is increasing. The american trucking associations says the industry. Trucking industry struggles with growing driver shortage more than 70 percent of goods consumed in the u. Accurate, reliable salary and compensation comparisons for. Hardly a day goes by without the driver shortage coming up in conversation. Many economists did not foresee a recession in 2020. Nearly every period of economic growth is accompanied by a driver shortage, including the recovery that began in 2009. But that includes drivers like cement truck or dump truck drivers, and they arent part of the driver shortage. Typical salaries for ltl truck drivers and benefits. The driver deficit swelled by more than 10,000 to 60,800 in 2018 from a year earlier, according to a study by the american trucking associations. According to the beauru of labor and statistics the trucking industry outlook is positive, and growth of up to 21% is expected through 2020. January 12, 2020 the ltl freight rate market is on the cusp of expansion.