As e-commerce booms and salaries for last-mile drivers increase, the country may have more truck drivers than ever before. But the problem is that local routes and front-door delivery jobs appear to be outpacing over-the-road hires.
In February 2020, the Bureau of Labor Statistics indicated that OTR truckload drivers rose to a high-water mark of more than 471,000. With the pandemic setting in, the number of OTR truckload drivers plummeted to an eight-year low of about 440,000 by September. Although the freight hauling industry anticipated the number of long-haul truckers would rebound, that has not necessarily been the case.
States reportedly issue upwards of 450,000 combined CDLs annually. This figure would lead one to conclude that an ample number of truckers are available to fill most, if not every, position. But as experts report to government officials year-after-year, the problem has nothing to do with licensing.
“It’s just simple math,” Owner-Operator Independent Drivers Association Todd Spencer reportedly said. “If every year there are an excess of over 400,000 brand-new drivers created, how could there possibly be a shortage?”
Spencer has routinely indicated he does not subscribe to the idea a persistent truck driver shortage exists. But the lifestyle of OTR truckers is rigorous, solidary, and thankless to a large degree. Spencer and others generally agree that retention ranks among the OTR sector’s greatest challenges, and some estimate driver loss at 90 percent annually. That may be why more drivers are opting for local routes and last-mile delivery jobs that may not pay quite the same as long-haul positions.
Since the country began reopening after the height of the pandemic, 84 percent of the estimated 22.4 million jobs placed on pause have reportedly been filled. Couriers, warehouse workers, and last-mile delivery rank among the occupations enjoying an uptick, despite a disappointing December jobs report that concluded only 199,000 were added.
“The winners are easy to see,” Center for Economic and Policy Research co-founder Dean Baker reportedly said. “They all center around people buying stuff at home.”
Amazon announced it planned to hire upwards of 125,000 warehouse workers and delivery drivers in September as the holiday-buying season ramped up. The average hourly wage was $18, while the Bureau of Labor Statistics estimates tractor-trailers driver pay hovered around $22.66. UPS hired about 100,000 seasonal workers, and Fed-Ex took on 90,000 new hires during the same period. Meanwhile, supply chain bottlenecks emerged as farmers and ranchers struggled to find tractor-trailer operators to bring food to market and ports. The uptick in warehouse and last-mile delivery positions does not appear to be a flash in the pan.
Although freight operations and fleets are determined to pay OTR truckers handsomely, the issue is not just about money. Limited hours of service, lack of safe parking, time away from loved ones, increased scrutiny, and regulatory oversight persuade long-haul truckers the grass is greener on the last mile. Those are just some reasons why OTR and last-mile jobs are heading in different directions.
Sources: npr.org, joc.com, usatodaycom
The Bureau of Labor Statistics say drivers are at a high water mark. Then WHY is the WOKE DOT trying to get 18 yr. olds licensed over an alleged driver shortage?