Truck Driver Shortage

Freight rates are through the roof for flatbed right now. You think The Megas are handing out significant raises to their drivers?

 

Carriers and others [dealing with CPM especially] often find themselves in a difficult situation in dealing with raising "base wage rates" where the new drivers start at.

If they want to raise it, say 4 cpm, then that puts the new guys coming on making better money then the guy working there 1 or 2 years, who's only seen a 2 cpm raise (in structured longevity increase). Sooooo, the have to raise their pay, which puts them making more then the veteran who's been there 5 years.

So, bottom line is they have to figure a way to raise ALL pay rates, from probationary drivers through your most senior drivers. And they have to more or less do it as a consistent percentage, bottom to top. This quickly makes a seemingly minor wage increase into a major bottom line cost increase. And this may be possible with the rate boom they are enjoying, but will that last? Are there not any possibilities of falling rates in the future? Can you continue and sustain those higher wages during potential lean rate periods that might last a few months ... or a few years?

 

Real simple. They are going to have to increase their pay, or lose trucks.

Wages have been stagnant in the industry since the late 90's early 00's. Meanwhile minimum wage has doubled and in some states more than that.

Companies are going to have to curtail their profits, or raise their rates and increase driver pay.

No nhm e of that will happen until store shelves do not have food on them.

 

I wonder how many have not advanced in this job because this was never the career they wanted. Many like myself went to CDL school during the Recession. After a while I was putting more focus on trying to retrain and get out of trucking rather than on getting the endorsements.

I got out for a while trying college and getting a 2 year degree, but that didn't pan out so I'm back. Now I'm deciding if I'm just stuck with this career and I just need to make the best of it or maybe someday I can move into an office role supporting trucking.

 

Is .47 cpm on a 1099 for company driver a fair wage today for dry van freight?

 

No

 

Probably not. You will have to deal with more tax BS being “self employed” and have to cover all of your own medical insurance. I’m not a lawyer but I believe it also puts the liability onto you instead of the MC. If for any reason you are injured on the job you will get squat unless you buy your own workers comp insurance. Maybe someone else wants to chime in but all of that doesn’t seem worth it for a few more cents than you can get at any mega with no experience.

 

Where are the 80,000 going to park?

 

With you at the nearest TA.

 

Hahahahahaah