ATA reports mild uptick in 3Q driver turnover

The ongoing truck driver shortage and driver turnover was one of many steady themes in the freight transportation sector in 2014, and data issued by the American Trucking Associations (ATA) this week showed that theme was fully intact in the third quarter of 2014.

The annualized turnover rate for large truckload carriers in the third quarter rose one percentage point to 97 percent, according to the ATA.  ATA defines large carriers as those with more than $30 million in annual revenue.

This level of turnover, which serves as a solid barometer of the trucking market remains high, observed ATA Chief Economist Bob Costello.

“While it is not approaching its historic highs of the early 2000s, continued economic growth and increased freight demand will continue to exacerbate the shortage of drivers many sectors of the industry are witnessing,” he said in a statement.

ATA added that the turnover rate at less-than-truckload (LTL) carriers was up 13 percent in the third quarter from 11 percent in the second quarter, while the turnover rate at small truckload fleets was flat at 94 percent.

“It is interesting to note, historically, the turnover rate for small truckload fleets was much lower than for larger carriers,” Costello said. “However, with increasing pressure to recruit and retain good, experienced drivers, we’re seeing higher turnover rates at small fleets – with perhaps improving pay and benefit packages at large carriers being a reason.”

Even with an increased onus on augmenting driver training, retention, and compensation packages, many carriers are still struggling with how to fill the empty seats. The ongoing driver shortage still serves as a major factor for tight over the road capacity, which has been burdensome for shippers in that they need to pay higher rates in order to get their freight moved in a timely and efficient manner.

Many industry stakeholders say that the lack of available––and willing––drivers will only get worse in the coming years, with the average age of drivers still firmly entrenched around 50.

What’s more, based on data from the United States Department of Labor’s Bureau of Labor Statistics (BLS), drivers made 6 percent less on average in 2013 compared to a decade earlier, when adjusted for inflation, cited an August 2014 New York Times report.

Bobby Harris, president of non asset-based 3PL Blue Grace Logistics previously told LM that the main issue with this current driver shortage is that there is no immediate cure to fix this predicament. 

“Even though there have been driver shortages in the past, there have been ebbs and flows,” he explained. “But the problem with this one is that we have not seen a solution or a remedy or something that will work itself out in the short term. We believe that there is going to have to be something significant that takes place to address that issue; otherwise, it is going to get progressively worse. It is not just a little problem. It is a big problem, and it cannot be overemphasized at this point, as it is extremely viable to supply chains.”

And while it is encouraging to see increased driver pay and incentive-based initiatives, the problem, he said, is those things take drivers from other companies and they move from one carrier to another.

“That does not increase the driver pool. If you walk into a high school today and ask the senior class is anyone wants to drive a truck after graduation, you likely will not find one hand raised,” he stated. “With an average age of [50], the driver pool is decreasing, and there are telltale signs that with the younger generation entering the workforce, there is no, or limited, interest in a blue-collar job, much less driving.”