I want to be clear from the start that maybe I am wrong in what I am about to post but I have been looking into the trucking industry for awhile now and I just don't get it.
It appears to me that from most observations that we have a shortage of truckers in America, most estimates put it at about 150,000 open jobs?.
From the driver's perspective most want better pay, consistent home time, and creature comforts in the truck to make life easier on the road?. Right ? Wrong ?
Now supply and demand generally sets prices so why with a shortage of so many drivers does pay not go up?...
The trucking companies all advertise like they need drivers like crazy but they will not put in simple things like APU's? WHY?. A local truck stop has at least 20 magazines full of ad's for companies seeking drivers plus a large wall of notices seeking drivers also. I cannot recall seeing another industry with so many open jobs yet the pay does not seem to improve and I cannot understand why?.
I guess what I am trying to ask is why with a shortage of 150K plus are things not improving for most drivers? Or are they improving and I am missing it?.
I realize I am over simplifying issues but still with the supply and demand being so off balance I am surprised at how the same issues remain across the industry for such a long time.
What am I missing?
Discussion in 'Questions From New Drivers' started by abbadox, Mar 11, 2014.
Page 1 of 5
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
Well... nothing like opening up a can of worms....
There are good paying truck jobs... but, they know they can be piicky about who they hire and rightfully so...
As a new driver, I know I need to get miles and experience... not just 3 or 6 months either... if I can gain 3 years good experience while keeping my CSA score low, my DMV record clean, no preventable accidents and preferably no accidents at all, with a history of on-time non damaged delivery... then I have put myself in a position to get on with a ggood company earning good pay with great benefits....
In my opinion.. neew drivers want and feel they deserve or entitled to getting the same pay as someone with years of experience and a good record... and that doesnt happen in any industry....
Also, many new drivers think they shoulld get paid for pulling a van or reefer around as the step deck , flatbed or anker... well a general practice Doctor does not earn as much as a specialist.. like heart doctor or surgeon..
The other thing to understand... in a CDL class of 10 maybe only 2 to 4 will make it to the third year.. anx some of those thatl stay.. may have had preventable accidents, or gotten tickets and limited their options and earning potential. ?. -
If a new cdl graduate finds a job with company x for say 35 cents per mile what on average does the company actually charge the company they are delivering per mile?. In other words what is the typical markup between company revenue per mile and what the company pays per mile?. Seems to me that is the real basis to work from. Again this is coming from someone that is looking at the industry and has very limited knowledge to work from so I could be full of it. Just trying to apply some logic... -
There are many reasons why the driver shortage or companies don't realy need drivers but they love the subsidy.So for every driving job they create means subsiby for that 1 person.Once the company has that subsidy they just assume u quit and make room for more suckers.Thats how companies mainly the megas treat drivers like suckers to fill their wall of shame.Then some companies are having trouble hiring drivers due to the more stricter laws,stricter insurance companies.These days it doesn't take much to tarnish your mvr and dac report.Alot of members here lost their job or can't find any companies that'll hire them due to bad mvr.Then there's the high turn over rate because companies don't care.They will not change their ways and policies for drivers.Companies like Werner and CrEngland don't give a rats ### who stays.The average length of stay with starter companies like these is 6 months to a yr and that's really pushing it.Many companies don't really need the drivers if they did then why the low miles especially for otr drivers.You'll get little to no respect from starter companies but the more research you do the better the pay the miles and the respect that drivers deserve.
-
There will always be demand for drivers willing to work for peanuts. But as the wages/ammenities increase, so do the costs and at some point it becomes worth it to stock more product & rely on bigger/cheaper/slower shipments by rail.
As far as APU's, the economics of it generally don't make sense compared to idling when it is hot and using a bunk heater when it is cold. Aside from the large upfront cost (that isn't recouped when selling), there is more maintenance, & more weight/less payload. With the current finicky emissions systems being forced into testing on production trucks, companies generally aren't keeping their trucks for a million miles anymore but rather trade them in just before warranty expires. -
You mentioned Werner and CrEngland so let's use them as examples, why would a company like Werner prefer to have high turnover?, poor performing drivers, high liability?. Businesses are in business to make money so is it actually more profitable for a company like Werner to pay less per mile but have to deal with turnover cost, poor performing driver cost, and higher liability cost or would they actually be better off paying more per mile and getting better drivers?. Am I wrong to assume that higher pay equals better drivers on average?.
-
Does anyone have actual numbers on what a typical trucking company charges a company per mile vs what they pay out. I would love to put together an average breakdown of where the revenue goes and how much is profit for the company vs the company driver. I am not looking for owner operator numbers but numbers for mid to large trucking companies that hire company drivers as that is what most seem to work for.
-
Just look on here,all kinds of ppl wanting to get into the industry.Companies hire more drivers then freight,more so with the starter companies.Just imagine how much they're making off a trainee.Companies are making a killing thanks to us but starter companies will never pay the newbies what they deserve.Some of the companies that require exp also pays sad wage.Everysince the economy took a dive,so did the work force.
-
Companies aren't going to tell us what they're making otherwise drivers would be demanding getting paid more and /or companies won't get no one to drive for them.I don't think i'd wanna know,it would just anger me.
-
Starter companies should not pay the same but again don't inflate experience with demand. Demand by itself should raise prices. Starter companies get less performance from a new driver so they tend to make less also. A new driver will get lost more often, more likely to get in accident, may decide this is not the right career for him, etc. All of these cost a company money so again I ask is it really more profitable for a company to churn and burn drivers or seek out better candidates from the start and pay them more up front or maybe as a performance bonus that is obtainable.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 1 of 5