Although significant year-over-year increases in driver demand create steady work, they do not necessarily ensure CDL holders will enjoy high rates of pay. The gap between filling trucker positions and actual employees hovers around 61,000. The men and women who deliver America’s goods and materials may feel secure knowing the driver shortfall will more than double in the coming years. However, other trends present cautionary tales about signing on with a freight outfit throwing money around.
Coming out of the pandemic, truckers are in high demand as supply chains are significantly backed up. This puts drivers in an enviable position that involves big-box retailers and others offering exorbitant bonuses and top-tier salaries to qualified professionals. But everyday truckers may want to pause and ask themselves if these practices are sustainable.
“People are throwing out big numbers, offering salaries, crazy big mileage numbers, and sign-on bonuses,” Alabama Motor Express president Collins White reportedly stated in the Journal of Commerce. “A lot of carriers get way too overextended during these boom times, promising drivers things they can’t follow through on.”
The pandemic reportedly forced more than 3,000 relatively small freight organizations into bankruptcy during 2020. That number tripled compared to 2019 when economic disruption was less of a factor. While many of those closures can be attributed to businesses that produce goods and materials shuttering, truckers found themselves looking for work. It’s entirely possible that the unsustainable pay hikes and bonuses offered in 2021 could also fall over the cliff.
For example, one outfit boosted payrolls twice through the first half of 2021 to stave off recruitment efforts from larger companies with seemingly deeper pockets. Drivers saw pay increases as high a $6,000 or upwards of 11 percent for remaining with the organization. When compared to wages in 2018, some companies have doubled salaries and perks.
“Our customers have been very understanding that it’s necessary to raise rates. I could literally hire 500 to 1,000 more drivers — we have the business offerings from customers to keep them busy,” Roehl vice president Tim Norlin reportedly said.
The downside may arrive after the supply chain logjam eases and outlets are flush with inventory on shelves and in storerooms. The driver shortage will still pose a logistical dilemma for years to come. But the economic panic will likely recede into industry-standard frustration. Once consumer demand is more readily met, rates could backslide and driver salaries with them.
It’s clearly in a truck driver’s best interest to maximize their earning potential. But keep an eye on freight haulers that stay the test of time and be watchful of those overextending themselves during this supply and demand crisis. Drivers will see no long-term benefit if deals are broken, companies close, and you land on unemployment for months.
Source: joc.com
The more states that raise their minimum wage the more companies have to raise their pay to keep driver’s. If min wage goes to $15 then every company out there has to raise their wages due to massive cost of living prices going up because grocery stores and big box stores aren’t going to take that much of a hit without rasing prices, so after every employee gets the pay increases they’ll need to survive after retail prices skyrocket in a few yrs those min wage workers will still be in the same exact spot they are now, higher pay for min wage jobs means higher pay and higher cost of living nation wide.
A possible solution would be to have salaried office personnel obtain a CDL. The clerical duties could be performed online while loading and unloading local pickups and deliveries. They could do regional runs on weekends and holidays.