Shortage Schmortage

We live in a supply and demand world. If there was really a driver shortage then we would have a capacity problem. That would mean that rates would be going up rather than down. I see more capacity than freight in some areas. Rates are being pushed downward rather than up. In a supply and demand world that means that there is no driver shortage. The figures that some use are rather misleading. We have something called "churn." That basically means that while we have turnover in this industry, much of it is drivers leaving one carrier to take a position with another company. Granted, some do leave, but most stick around the industry. The major carriers and ATA do push this shortage issue to keep wages down, although drivers to earn an above average wage. When rates start to escalate then you know that capacity is tightening and there may be a shortage of drivers. A few years ago we did have something of a shortage. I had brokers calling me and asking if I would just name my price to haul freight. I wish that were the case now. By the way, that was just before the crash in the fall of 2008.

Another reason these major carriers push the driver shortage slogan is so that they can continue to get federal money to train new drivers. These training carriers receive thousands of dollars for every driver that they bring into their program. As long as they perpetuate the driver shortage, they continue to receive federal funding to train these individuals.

 

G/MAN hit the nail on the head. If you will recall during the dust bowl California farmers distributed propaganda in Oklahoma promising jobs, plenty of work. It drew so many migrant workers to California that they had to beg for the jobs when they got there. I suspect large trucking companies are behind all this driver shortage hype. They will always say we need more drivers until they have them camped out begging for work in front of their offices. Until they can put them two in a truck and pay them $25,000/yr. with no home time.

If there was 10% more trucks, I don't even know where they'd park at, every truck stop and rest area in the country fills up at 7 pm or so. If there is such a shortage, why do I have to call on 10 or 12 loads before I find one offering a profitable rate ?