The driver shortage (solved)

frieght rates are high and looking like will stay that way or go higher .why that is important to even a company driver is that the carrier's are making money and need to have someone in there trucks . so they are starting to raise the company drivers pay ... as an owner operator I have seen a big increase in profit since December. ... my best slow season ever (January and February ) now companies are a little leary of raising pay because it is really hard to lower pay when the rates take a dive .... like 2008 and 09 so you know the company's making serious money if they are raising pay ..... I know democrats have a hard time understanding that in order for the workers to make good money the company must be making money. ....... now why the bigger companies want an alternative to raising drivers pay and the easiest way they have found is to get the government to subsidize there training program and with a inexperienced driver they don't have to pay as much. but now with the economy doing so well they are having a hard time attracting new students so they want to lower the age to 18.... now let's look at how rates are set .. let's say there is 78 loads in a given area and there are 54 trucks in the area those 78 loads have to compete for those 54 trucks and even make it worthwhile for some trucks come in from other areas if they want there loads hauled. .. now let's say there are 123 trucks competing for the 78 loads the shipper can get a lot better terms. ... so now when old timers like me talk about Russians Somalian and the others coming over here to drive and the new crop 18 yr Olds is that it will depress the freight rates .. and why you should care as a company driver is why should the company pay you 50 cents a mile when they can get a 18 yr old kid to do it for 30 cents ........ that's a little simplified but you should get the ides

 

Not only that. The insurance guys see it so wrong. A guy with zero experience has one thing going for them-a clean sheet. So now these idiots are happy! No tickets, no wrecks. What a country.

 

Yes you are very very right there mate about 11 years ago a few Aussies, Kiwi's and Brits came over there on H2B temporary work visa's. and i'm often answering questions from other drivers wishing to apply for a work visa, my response is its very difficult at the present time to obtain temporary work visas because the Government looks at a population of say 300 million and wonders why out of that number we can't make up say 400,000 drivers? Its quite simple everyone wants the 9 - 5 job working in a nice comfortable office. OTR don't give you that although the "office " is kind of air - conditioned.

 

Fixed!

 

Very true. Or guys start out, have an accident or something, which happens, and now they cant get hired on by anybody else. So now instead of a company having a full staff, theyre short 4 or 5 guys because of this insurance and over-regulation on maintaining cdl's.

 

Freight rates lower when more trucks are on the road.

 

Some of the trucks I see on the road, make me think half these drivers will work for whatever you give them along as they can buy more ducktape to hold the mirrors on..

 

So your previous statement makes absolutely no sense then. Why would any carrier, big or small want to intentionally drive rates down?

 

they aren't trying to drive the rates down its just sometimes greed replaces good sense

 

Yep. Nobody intentionally drives a rate down. It is the market at work. When you have an over abundance of products and services the prices (wages) go down. In contrast, if you have a shortage of products and services then the prices (wages) go up.
It’s too easy to get a CDL and it’s too easy to start your own trucking business. Any one can jump in and add into the pool and that results in prices and wages stagnating. Basic economics.