The second half of 2014 brought the largest number of driver pay raise announcements Gordon Klemp has ever seen.
Klemp has been tracking data on driver pay packages since 1995 as the head of the National Transportation Institute. He says a cycle of pay increases began in the second half of last year, with Tennessee-based U.S. Xpress kicking things off with a 13% pay raise. Major truckload carriers such as Heartland Express, Crete Carrier, Barr Nunn and others followed. Some increases were as high as 20%, Klemp says. The highest were for teams that haul time-sensitive long-haul freight.
Its not just the high numbers that are a first its the pace. A normal cycle of pay increases runs about 33 months, Klemp says. If things continue at this rate, we will probably wrap up the cycle in about 13 to 15 months.
The reason, of course, as we explained in the first in this series last month, is that fleets are having a hard time getting enough drivers to meet high freight demand, thanks to demographic changes, tighter regulations and other factors.
Basic laws of supply and demand would seem to indicate that if the industry has a high demand for truck drivers and there is a shortage of supply, that a raise in pay would solve the problem.
Its true that driver wages have not kept up with inflation (although thats true of American wage earners as a whole.) Many trucking company executives acknowledge that driver pay needs to increase.
The thing we all struggle with is that in order to attract new entrants, the average pay is probably going to have to go up to $65,000-$70,000, said Scott Arves, president and CEO of Transport America, a diversified carrier based in Eagan, Minn., speaking last fall at transportation research firm FTRs annual conference. All were doing now is stealing from those who cant afford to pay. Raising pay from $45,000 to $46,000 is not going to suddenly make this job attractive.
http://m.truckinginfo.com/article/252552/driver-dilemma-how-important-is-pay
transport America CEO States now drivers must be paid more money than they hav
Discussion in 'Truckers News' started by drvrtech77, Feb 25, 2015.
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joseph1135, imup4it, Skydivedavec and 2 others Thank this.
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I see "trucking specialists" are just as clueless as politicians. We are doomed as a nation if this is the level of "expertise and honesty" we must rely on for guidance and leadership.
We don't need a continued flood of new entrants into trucking, we need to keep existing drivers from getting fed up with the job and leaving. Money may be part of that equation, but the respect they (drivers) also demand is not going to come before they earn respect. So, drivers need to step it up, and carrier bosses need to step it up, too. I realize it's not an easy task, but somebody has to start earning respect, and hopefully this will be matched in return.Skydivedavec Thanks this. -
Companies need to work on:
1. Getting drivers home weekly.(I think this would be a game changer regarding the high turnover at companies)
2. Fight harder to stop the government from introducing more laws that only hurt our industry.
3. More places for us to park at night
These are just some of the things that came to the top of mind.Arkansas, Skydivedavec and drvrtech77 Thank this. -
One of things thst definitely needs to be addressed is the ridiculous wait times that cone up with some shippers/recievers. That is the biggest income killer for a lot of drivers.TruckDuo and Skydivedavec Thank this. -
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A lot of the "laws" that you may be speaking of were essentially requested and lobbied for by the trucking industry.
The parking situation will have to be added to over time and can't be "mandated". It's being addressed when/where it can be and we'll just have to be patient as the marketplace along with states can add more and larger parking areas. New truck stops are being built nationwide at phenomenal rates. Can't fault the private truck stop sector. -
Driver don't get excited. This message was not delivered for your benifits the speach was given to alert shippers we are going to be increasing rates and we are telling you that it is because of increased wages. Since you are a busy professional you are not going to visit our website and look at what we have posted for driver pay rates and how many miles I driver would have to drive to make 65k under our current pay packages.
To our investors. Please look for increased profits.Rollin'Coal and zentrucking Thank this.
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