The for-hire trucking market does not have a driver shortage problem
The industry would benefit from less drivers
The industry driver shortage narrative is helping to destroy the truckload market’s economics by attracting more drivers and fleets to our industry. It plays well in truck driving schools and recruiting ads, but it creates more danger than good. By attracting more drivers and fleets into our industry, we are creating more capacity at a time when the market needs less of it. – According to the article from the freightwaves.com and its author Craig Fuller, CEO at FreightWaves
Trucking companies can have unseated trucks (i.e. not enough drivers to drive the trucks that the carrier owns), which is a driver shortage. But that is the carrier’s problem, not the market’s. There are plenty of carriers that have unseated trucks and it can bankrupt them if it becomes perpetual. – Fuller wrote in his article
A market can have a capacity shortage, in which the market doesn’t have enough trucks available for dispatch at a moment in time. That is a market problem.
Capacity shortages are good for carriers and drivers alike. Rates go up when there is a shortage of capacity. Carriers, in turn, gain more volume, which encourages them to add trucks. Once the available pool of drivers is dried up for the new trucks, carriers increase wages and incentives to attract drivers to drive for their fleet.- Fuller also wrote in his article
Read the full story here
Source and credits: freightwaves.com / Craig Fuller, CEO at FreightWaves / and, iTrucker / Mario Pawlowski