The shortage of truck drivers is due to several reasons. First, there is a high turnover rate, which has been over 90 percent for quite some time. This is not due to underappreciation, but because truck drivers are leaving for better pay, benefits, and working conditions. Second, wages haven’t kept up with the cost of living.
Third, the shortage has affected different types of trucking jobs. The majority of shortages occur in the On-the-road and Full-truckload shipping methods, which require drivers to spend most of their day on the road. While the Less-than-truckload shipping method requires drivers to spend the majority of their time in the office, it doesn’t require them to stay on the road.
Ultimately, the shortage of truck drivers is a global problem, not just in the U.S. The trucking industry suffers from driver shortages in Europe and China. According to the International Road Transport Union (IRTU), a survey of 800 transport companies in 20 countries documented a shortage of nearly one-fifth of the workforce. Furthermore, while increasing trucker compensation has helped alleviate the shortage, the slow licensing process prevents many new drivers from entering the industry. Moreover, the lack of leadership in the federal agency responsible for commercial trucks has exacerbated the problem.
What is Causing the US Truck Driver Shortage?
During the last few years, the shortage of truck drivers has steadily increased. The first shortage was documented in 2005 and then stabilized when the recession hit in 2008. It returned in 2011 and then skyrocketed in 2017. Since the pandemic began, the shortage has increased by more than 20% and is projected to reach 160,000 drivers by 2021. According to Rodrigue, the reasons for the shortage are based on the number of drivers needed, regulations, pay, and labor conditions. However, one thing is for sure, the demand for truck drivers outweighs the supply.
The shortage is the result of a combination of factors, including increased freight demand and early retirements. Another factor is the pandemic, which affected many supply chains and increased demand. The epidemic led to early retirements, closed driving schools, and increased road congestion.
Is There a Shortage of Truckers in the US?
The shortage of truck drivers has been a major concern for the trucking industry for several years. This problem impacts the entire economy and is affecting shipping delays and prices for consumers. The shortage also threatens supply chains. To combat this issue, the trucking industry must work with logistics providers and shippers to find a solution.
The transportation industry is vital to America’s economy. Over 2 million tractor-trailer truck drivers work for the nation’s trucking companies. According to the ATA, the shortage is primarily in long-haul trucking, which refers to truck drivers who cross state lines to deliver goods. While there are more than two million commercial truck drivers in the United States, the government estimates that there are only 300,000 to 500,000 long-haul truck drivers. Every year, more than 450,000 commercial driver’s licenses are issued to new commercial drivers, which means that many newcomers are entering the long-haul trucking industry.
The shortage of truck drivers is not so much a shortage as a lack of drivers. There is a lack of qualified people, particularly young people. Many of these individuals are currently employed elsewhere. However, a shortage of truck drivers is a big challenge for the trucking industry. The average age of professional truck drivers is 55, which is much older than similar industries. In addition, many of these drivers are retiring. Luckily, there are many ways to increase the number of truck drivers and help them maintain their incomes. Besides offering competitive pay, companies also provide comprehensive benefits packages and tuition reimbursement for CDL training.
Is 2022 a Good Year to Get into Trucking?
The trucking industry has undergone many changes over the past several years, but there are signs of a recovery. Rates are nearing historical highs, and capacity is at a premium. Experts expect that shortages will persist into 2022, but rates will eventually go down. This presents a great opportunity for trucking business owners. By improving efficiency and turning your business into a lean, profit-making machine, you’ll be well-positioned for success.
According to the American Trucking Association, the trucking industry will continue to be in need of drivers in 2022. The shortage is expected to be an ongoing problem, and trucking companies will seek to recruit young, diverse employees from new demographic groups. For example, women currently make up just 7% of the trucking workforce. Additionally, trucking companies will seek to recruit people from diverse backgrounds by creating more opportunities for people of color and other underrepresented groups.
While many trucking companies are going out of business due to the tough market, others are choosing a merger or acquisition route. If the market does not improve in 2022, many more companies will merge. A trucking company can pool its resources with an existing company to continue operations and expand into new territories. It could also merge with a company in another sector.
How Long Will Truck Drivers Be Needed?
There are currently about 3.3 million truck drivers in the U.S., but the number of drivers is in decline. The long-haul routes are among the least lucrative jobs, with the average trucker working 300 days a year and earning around $47,000. Short-haul routes are more challenging, but are more appealing to more experienced truckers.
Truck driving is a demanding profession, and many people end up burnt out quickly. Long-haul truck drivers, for example, move cargo across the country and sometimes states. They are paid for the number of trips they make, and often have little control over where their cargo ends up.
Long-haul truck drivers experience high turnover rates. The annual turnover rate in this sector is nearly 90%, according to ATA statistics. This means that every year, three truck drivers will leave the same company, and three open positions will need to be filled.
Will Semi Truck Prices Go Down in 2022?
While the trucking industry is facing a supply-demand conflict, there’s no indication that prices will drop significantly. However, the current situation has triggered many concerns about the future of the trucking industry, including a shortage of truck drivers. The American Trucking Association estimates that there are over 80,000 unemployed truckers. Drivers move over 70% of US freight, so this shortage is a major concern. The shortage has already caused historic delays in shipping ports.
Despite these concerns, the trucking industry is likely to continue to see strong demand in the years to come. While new truck prices continue to climb, used truck prices are also rising. The price of three to five-year-old trucks increased by nearly seventy percent during the first half of 2022. However, prices for late-model sleepers should begin to drop in the next couple of months. As the market continues to recover, year-over-year auction comparisons will likely be lower than those in retail.
Although many in the trucking industry expect Class 8 truck prices to continue rising, there are some factors that can influence their growth in the coming years. First of all, the shortage of trucks in the market is making used trucks more valuable.
Is Trucking on the Decline?
The trucking industry has been experiencing a decline in demand. Some industry veterans are speculating that a looming recession could be on the horizon. One recent survey by Bank of America has shown that truckload demand has dwindled by 58% to near-recession levels. This decline in demand is attributed to a variety of factors, including changing consumer spending habits. While a pandemic of online shopping restricted many buyers from purchasing goods, other consumers spent more money on services.
Despite this, trucking companies are seeing low retention rates. The average turnover rate in the trucking industry is 95 percent, which means that companies must replace nearly all their work force every year. The good news is that recruiting more drivers is one way to boost the supply of drivers and keep wages low. In 2019, there were more than 10 million licensed commercial drivers in the US, and more than 3.7 million trucks required a commercial driver’s license.
However, the market conditions remain challenging, and some trucking companies are going under. As a result, many are choosing to merge and pool resources with another company. As long as the market doesn’t improve, these mergers are likely to happen again in the coming years. If this trend continues, the smaller trucking companies are expected to merge with larger trucking companies.
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