Critical Driver Shortages & Hiring Obstacles Hurting Transport System
Before the Covid pandemic disrupted every aspect of life in the US, the trucking world was facing a shortage of roughly 61,500 drivers. In recent weeks that number has spiked drastically. Now the industry is struggling with an alarming 80,000-driver shortfall, according to the American Trucking Associations’ Chief Economist Bob Costello.
In a PR news release, Costello noted “increased demand for freight,” “early retirements,” and “closed driving schools” among the numerous factors that have led or contributed to this record-shattering scarcity of drivers. However, when it comes to the root causes of today’s hiring dilemma, that’s just the tip of the iceberg.
List of other factors impacting driver shortages
The ATA’s Driver Shortage Update 2021 (published October 25, 2021) lists many more variables, such as:
- General lack of interest in long-haul truck driving
- Failure of prospects to pass drug tests (in part because of the continued federal ban on cannabis, which has been legalized in many states);
- Failure of prospects to pass background checks or possess suitable safe driving records;
- Extreme shortage of women entering the overwhelmingly male field (only 7% of the driving workforce are female);
- The minimum driving age of 21 to cross state lines;
- Poor infrastructure
Hope from the infrastructure bill?
In terms of the poor infrastructure, News Channel 5 Nashville suggests a glimmer of hope from the new federal infrastructure bill, which “authorizes hundreds of billions of dollars for transportation, which would include workforce development for the trucking industry.”
However, the site also notes the bill would only affect “3,000 drivers between the ages of 18-20” to undergo training. Considering that the industry must recruit an estimated one million drivers in the coming decade to cover the growing gap, 3,000 drivers seems like a drop in the bucket.
Incentivizing and empowering younger drivers
IFDA points out that “the average age for truck drivers in the U.S. is 46 years old, meaning companies are facing a retiring workforce.” The bipartisan DRIVE Safe Act is aimed at enhancing opportunities through apprenticeships while increasing safety training.
The act attempts to tackle the federal age restriction problem, citing that most states let 18-year-olds obtain their commercial driver’s license and drive intrastate. Proponents of the bill, such as the National Retail Federation, argue that the federal age restriction is based on a 1938 law written “before the creation of the interstate highway system.” Under current regulations, a driver under the age of 21 can “drive hundreds of miles within a state but can not make a simple 10-mile trip into another state.”
Problems at the ports
NBC News, reporting on the complexities of the global supply chain crisis, touched on a critical issue in its post, “Poor conditions and low pay for truckers helped fuel supply chain crisis.” NBC highlights the frustrating inefficiencies and delays facing port drivers, which economic sociologist Steve Viscelli called “shock absorbers.”
Often paid by the load instead of by the hour, independent contract drivers are struck especially hard since they aren’t classified as employees. They are essentially at the whim of the congested ports, often waiting around idly for hours while left unpaid for their time. Clearly, that’s leading many drivers to find better employment elsewhere.
Problems with pay
Smart Trucking offers a no-holds-barred breakdown of what it considers to be the “dirty truth” behind the shortages: “low pay; lack of respect; often poor working conditions; and demands of the job.”
In terms of pay, companies around the country are offering substantial increases to attract new drivers and “keep the ones that we’ve got,” as Groendyke Transport’s CEO puts it. Improving compensation is certainly a proven method of recruitment and retention, though efforts are inconsistent from employer to employer.
Over the summer, Paper Transport announced its “biggest-ever pay raise” to “put 88% of its regional drivers at or above its benchmark goal of 60 cents per mile.” However, as a self-proclaimed top carrier they’re in a position to offer such generous hikes, whereas other businesses may be unable (or unwilling) to pay drivers enough to sign up or stay on.
ATA’s position paper brings the pay issue up as well, predicting that “rising pay rates alone will not solve the driver shortage because some drivers will choose to work less at a higher pay rate, negating the impact of the increase.” In this regard, boosting pay could be a Catch-22 in some cases.
Putting women behind the wheel
Historically, rates of women truck drivers have been meager, but the pendulum is starting to swing. Knight Transportation recently recognized how the industry’s culture has changed to open doors for new prospects in an era of dire shortages. Indeed, the company has worked hard to incentivize women recruits and now boasts a female driver employment percentage higher than the industry average.
Meanwhile, the non-profit Women in Trucking Association continues to make headway in its mission to “encourage the employment of women in the trucking industry, promote their accomplishments, and minimize obstacles faced by women working in the industry.” The association’s President Ellen Voie recently posted her statement of praise for the bipartisan infrastructure bill, saying, “the bill will bring more women behind the wheel and protect those who have made truck driving a career.”
Going Forward
None of the myriad problems causing the truck driver hiring dilemma have easy fixes. The industry, and the government, are well aware of the crisis and are taking various measures to address aspects of the underlying problems.
Only time will tell how effective these measures will be on their own or what net positive change they may lead to. Meanwhile, outlets such as TIME publish articles (like “The Truck Driver Shortage Doesn’t Exist. Saying There Is One Makes Conditions Worse for Drivers”) that attempt to reframe the issue at its core. It’s valuable to take all perspectives into consideration but tough to solve a problem if we cannot agree that one even exists!
Sources:
News Channel 5 Nashville – https://www.newschannel5.com/news/trucking-industry-offer-solutions-to-nationwide-driver-shortage
Trucking.org – https://www.trucking.org/sites/default/files/2021-10/ATA%20Driver%20Shortage%20Report%202021%20Executive%20Summary.FINAL_.pdf
PR Newswire – https://www.prnewswire.com/news-releases/ata-chief-economist-pegs-driver-shortage-at-historic-high-301407924.html
CNN – https://www.cnn.com/2021/07/28/politics/infrastructure-bill-explained/index.html
IFDA Online – https://www.ifdaonline.org/issues-advocacy/drivesafeact
Congress.gov – https://www.congress.gov/bill/117th-congress/senate-bill/659/all-info
NFR – https://nrf.com/blog/4-reasons-congress-should-pass-drive-safe-act
Smart Trucking – https://www.smart-trucking.com/truck-driver-shortage/
TT News – https://www.ttnews.com/articles/more-carriers-raise-pay-amid-driver-shortage
Paper Transport – https://www.papertransport.com/largest-regional-pay-increase-in-company-history/
Knight Transport – https://driveknight.com/blog/careers/demand-women-truck-drivers-growing/
Women in Trucking Association – http://www.womenintrucking.org/
The Guardian – https://www.theguardian.com/sustainable-business/eight-steps-net-positive-jargon-business
TIME – https://time.com/6116853/truck-driver-shortage-supply-chain/