We're the reason rates are down

This is an interesting thread. When I get time I'll have to go back and read all of the replies.

Here is my question. Why is it that we continually hear there's a driver shortage? Why is it that we hear Walmart needs drivers so desperately that they're upping the pay and I am certain that I've read that in general the pay is going up to attract more drivers because there's a shortage.

Are you guys trying to say there's a shortage of company drivers and an overabundance of owner-operators?

Would not the overabundance of owner-operators compensate for the shortage of drivers if that is true?

Somehow this doesn't seem accurate to me unless...

The overabundance of owner-operators drives the spot Market down yet the contract Market has a shortage. But then again, if there was a shortage with the contract Market, those loads would go to the spot Market, wouldn't they?

I don't get it.

 

I commented in another thread earlier that I recently talked to a previous boss (owner) who has a fleet of 150 trucks, 75/25 leased to company trucks.

He told me he's about to start hiring guys fresh out of truck driving school. He said he's having trouble with retention, "hire 2 lose 3."

I would of never in a million years thought he'd do that. They had a minimum 2 years experience with a waiting list of guys wanting to work there for a long time.

No more...

Is it truly a sign of the times in trucking?

 

Must not pay enough.

 

Not sure. It's been almost 6 years since I drove for him as a company driver.

I-5 corridor door slammer with lots of drop & hook and good miles and home time. I was at 0.42 a mile, plus benefits back then. Not the best, but it served my purpose at the time.

Would imagine it's about the same there still.

 

In every lie, there's a grain of truth. There is not a shortage of drivers per se, more like there's a lack of qualified drivers who are willing to put up with the pay/working conditions in the OTR truckload segment. The training schools and driver mills are constantly churning out drivers and putting them in seats but there is big washout in the industry. A GOOD irregular route OTR carrier will have like an 80% turnover....average turnover is like 100% or even higher. So on average, every single driver that gets hired is replaced each year. Either medical issues, drug problems, background checks, or they just can't stand being on the road. More likely, they get some experience and move on to a better job like a dedicated gig, an LTL carrier, private fleet, regional, fuel tankers, flatbeds, etc that pay better and get them home.

They're run by corporate wall street suits who awhile back put in a massive driver pay cut during the greatest freight boom of this generation. Alot of drivers got mad and quit, Wal-Mart couldn't replace them, and then had to backtrack on their stupidity. Sam Walton would never have allowed that and would have fired all those corporate idiots.

 

i think Walmart is getting poor service from a few third party carriers. Using thier own trucks and drivers is the fix.

 

exactly Walmart was in the process of replacing there company drivers with outside carriers which makes really good sense to the guys with the MBA to save some $$$$$ but it didnt work out that way and they have totally switched plans now and hiring drivers , I think they will eventually have enough company drivers and wont use contractors except for the busy season in the fall ..... its only been 6 months since the Walmart drivers were getting ready to look for new jobs , thats the trouble with megas and new drivers in general is there service level . should be a lesson for all owner operator is there are 2 ways to compete in this or any industry and that is by price or by service

 

Nooooooooo, this is the way they want it. Perfect example of beancounting. See you and I think a certain way...we are 'in it to win it.' They run a trucking company the complete opposite way that you and I would. They make a deal with a trucking school and charge $5000-6000 for what, if you look around, can find for $1200. The school advertisements are to attract Losers. Offer a Loser "potential to earn $80000 in 6 weeks and Respect (Be a Professional Truck Driver and make buttloads of cash!), have the recruiters come in and give them a 'prehire letter', and Loser signs up with Moron Trucking. Loser is locked in for a year.

Thing is, the people that they are attracting through ads and whatnot have ZERO work ethic. You could put this guy in a company truck and pay him $4000/week as a company driver and he will STILL do a crappy job and quit. "Good drivers make money. Money doesn't make good drivers." No amount of money is going to turn a person with bad work ethic into a person with good work ethic.

Now, you and I, would look for people with good work ethic from the beginning. They don't, they target the ones with bad work ethic.

 

most of the turno ver rate is from new drivers lured into the freedom of the open road and the huge pay checks when that doesn't pan out to what they expected they quit . and another good % of the turno ver is from job hopping ... look at the better companies turno ver rate for drivers thats been with them for a year and its more in line with a regular industry job