Driver availability tends to follow the unemployment rate in that way. Kristen monaco, associate commissioner of the bureau of labor statistics. Truck driver shortage constrains booming texas oil fields. The shortage of drivers comes as the industry looks to a future with selfdriving, autonomous trucks. While the economy continues a weak recovery from recession, the transportation industry has already experienced a good recovery, according to an ftr associates consultant in a dec.
The aim was to mitigate driver fatigue and accidents, but it also meant that the amount a single driver could haul declined. Firm predicts driver shortage to improve fleet owner. New era coming in trucking human relations, experts say. It takes hundreds of trucks per well just to get the sand, plus up to 60 per day to dispose of water, and more to deliver oil to gulf coast hubs. Even with numerous truck driving schools to hire from, a shrinking pool of drivers is putting wage pressure on idahos trucking. Ftr associates has projected the trucking industry will need to attract as many as 160,000 new drivers by 2016. There is no perennial shortage she tells the ftr conference in indianapolis. An incoming regulatory tsunami could leave the american trucking industry in need of a million drivers by 2016, if all the new regulations currently being considered are implemented. Avery vise vp of trucking research with ftr and associates joins.
People working in the trucking industry say a shortage of drivers is looming larger than ever and freight and logistics companies say they cant fill. Jul 19, 2017 the canadian trucking alliance says in canada, the labour shortage could reach 48,000 by 2024. Ftr associates predicts decline in truck tonne miles by truck news october 1, 2007 indianapolis, ind. The canadian trucking alliance, a federation of the provincial trucking associations, representing over 4,500 motor carriers has formed a blue ribbon task force on the driver shortage to try and provide leadership in the daunting task of developing a coherent direction for moving forward on the issue. American transportation consultants ftr associates is forecasting. Nearly every period of economic growth is accompanied by a driver shortage, including the recovery that began in 2009. Truck driver shortage impacts highway safety michigan auto law. Trucking hr canada has launched its youth with drive survey, as a next step in. The driver shortage is the number one industry concern, according to the american transportation research institute, an ata agency. Turnover rates never seem to get down below 40%, said vise. Trucking outlook shifts to neutral canadian trucking alliance. Ftrs trucking conditions index moves higher in august. Arlington, virginia today, the american trucking associations released its latest examination of the driver shortage, finding the industry needed 60,800 more drivers at the end of 2018 to meet the countrys demands for freight services. Bls monaco makes clear her views on driver shortage.
Why every company needs to pay attention to the truck. Starks spoke during a presentation at commercial carrier journal s fall symposium in scottsdale. According to a report by truck news, during the industry forecasters state of freight webinar this week, perry and ftr director jonathan starks focused on the. Ftr associates predicts decline in truck tonne miles truck news. Jul 26, 2005 the lower driver labor index alongside a steady freight demand index continues to create a driver shortage in the range of 140,000. In the context of an almost 10% general unemployment rate in the.
Trucking industry struggles with growing driver shortage. Outlook and trends for employment amid the job losses of the past decade and the overqualified, inexperienced worker saturated job market, the trucking industry still faces a driver shortage. You cant think of the driver market as being a closed system, according to vise. Breaking down the truck capacity shortage supply chain dive. In the october trucking update, you will find ftrs truck driver. That startling assessment was made by noel perry, senior consultant with ftr associates, during the industry forecasters state of freight webinar thursday. Noel perry, senior consultant for ftr associates, estimates the trucking industry is.
American transportation consultants ftr associates is forecasting steadilydeteriorating conditions for shipping capacity through 2017, in reaction to stronger demand and. Trucking s driver shortage is getting worse, as freight demand grows modestly and the qualified driver corps dwindles, a trend thats making drivers more desirable than equipment, industry. In fact, according to, noel perry, the managing director and senior consultant at ftr associates, is. Truck driver shortage to persist even with salary increases. Trucking has a turnover problem, not a driver shortage. Trucking needs to double hiring to offset productivity losses posted tuesday june 17, 2014, in business, labourhr driver shortage the myriad of regulations in the u.
Theres been a trucker shortage since the middle of 2010, and the shortfall peaked at about 253,000 drivers at the beginning of 2014, according to ftr associates. Trucking capacity and rate outlook for 2017 road scholar. Shortage of drivers causing a crisis in transportation. Driver shortage the only business resource dedicated to the north american truck driver shortage. Despite a very, very conservative forecast for the economic recovery as a whole, an ftr associates economist says were facing a capacity crunch driven by a. No container or straight truck or trailer moves without, at some point, a truck driver. Ftr s unique measurement of truck freight gives you a more complete overview of the us truck market. Why is there a trucking shortage and how does it affect. Improving economy squeezes truck driver supply reuters. Jan 01, 2014 analysts and carrier executives agree that since the great recession of 20082009, the truckload tl sector has been the slowest to recover. Lester drives this 2014 peterbilt 579 and 48foot reitnouer courtesy of allan lester allaluminum trailer. With capacity constrained, freight demand climbing and rates humming, ftr says market conditions for carriers reflect a best ever environment.
People working in the trucking industry say a shortage of drivers is looming larger than ever and freight and logistics companies say they cant fill positions as fast as baby boomers are leaving. Pay and the driver shortage owneroperator allan lester sees the driver shortage discussion as the same old thing weve been talking about for the last 30 years namely, how to pay drivers adequately. According to usa today shortages of trucks and drivers are delaying some deliveries of products and raw materials across the usa and raising freight costs. Ftr associates estimates a current short age of about 10,000 drivers but warns of a 124,000 driver shortfall by late. With truckers in control, money talks and toilets sparkle. The american transportation research institute atri unveiled its. Ftr associates consultant noel perry forecast freight growth in 2011 will average 4 percent, with some quarters hitting 7 percent. Noel perry forecast freight growth in 2011 will average 4 percent, with some quarters hitting 7 percent. Disruptions ahead posted monday june 12, 2017, in business, infrastructure, labourhrdriver shortage, technology uncertainty over international trade combined with impeding electronic logging device mandates as well as automation and ondemand servicing in the transportation industry are the key potential disruptions. Trucking firms hope to fill driver shortage by pimping out. Sep 14, 2011 new york trucking companies may face a 30 percent surge in wages by 2014 as rising demand for freight shipments threatens to push the industrys driver shortage to the highest on record.
According to industry experts, a crisis is looming in the transportation industry and at the. Even with numerous truck driving schools to hire from, a shrinking pool of drivers is putting wage pressure on idahos trucking companies. A shortage of truck drivers that has been simmering in the u. Trucking needs to double hiring to offset productivity. Ftr s unique measurement of truck freight gives you a complete overview of the u. Truck driver shortage impacts highway safety michigan. In fact, during this challenging period of time, the tl market lost more than 20 percent of its capacity, and the nations soso economic recovery has made tl executives gunshy about ramping up capacity now that theyre unsure about overall economic. American truck fleets operate in a competitive yet fragmented market where obtaining comprehensive and timely market insights are difficult.
Monaco, an associate commissioner at the department of labors bureau of labor statistics, spoke wednesday at the ftr transportation. Through a federation of 50 state trucking associations, affiliated conferences and individual members, ata is the leading voice of the industry that america depends on most to move our nations freight. Ftr posted monday january 15, 2018, in business, technology net trailer orders reached an alltime high of 47,000 units in december, according to preliminary data from ftr. Fisk suggests fleets take a more sophisticated approach to hiring. Robinson, capacity utilization, driver shortage, eld, electronic logging devices, ftr associates, logistics, steve raetz, trucking, truckload subscribe to our youtube channel new videos added weekly, discussing all aspects of logistics today. Us regs could leave trucking short a million drivers by 2016 driver shortage the only business resource dedicated to the north american truck driver shortage. Ftr associates projects the driver shortage will shrink slightly to just over 100,000 drivers in the second quarter of 2005. Driver shortage the only business resource dedicated to. A combination of changing demographics, tougher safety demands associated with csa 2010, stagnant wages, increased drug and alcohol testing and other workplace changes are cited for reasons behind the shortage. Nashville, in based transportation forecasting firm ftr associates predicts the trucking industry will suffer a largerthanexpected shortage of 54,000 drivers. Over the past 15 years, weve watched the shortage rise and fall with economic trends, but it ballooned last year to the highest level weve seen.
For the many unemployed truck drivers across the us, it may be surprising to learn that there is currently a nationwide shortage of qualified and experienced truck drivers. Kristen monaco, an associate commissioner at the bureau of labor. Ftr research analyst discusses truck driver shortage, pay. Can carriers hire enough drivers to support booming truck. According to the report, atas first indepth examination of the driver shortage since 2015, the driver shortage eased in 2016 to roughly 36,500 down. American transportation consultants ftr associates is forecasting steadilydeteriorating conditions for shipping capacity through 2017, in reaction to stronger demand and the electronic logging device eld mandate. Elds, driver shortage send trailer orders to alltime. The trucking update is your monthly source for independent analysis. A new normal in the truckload industry talking logistics. Ftr provides freight forecasting and analysis for shipping, trucking, rail. Even so, trucking companies, especially truckload carriers, often have great difficulty finding, hiring and keeping drivers. Increased freight means the truck driver shortage is expected be 400,000 by the end of 2017, the freight intelligence group ftr associates. Ftr transportation intelligence projects strong spot market for 2018.
Truck drivers are the basic unit of transportation capacity and the glue that holds supply chains together. As a whole, the market for truck drivers appears to work as well as any other bluecollar labor market, and while it tends to be tight, it imposes no constraints on entry into or exit from. Avery vise, as vice president for trucking research at ftr transportation intelligence, keeps track of these and other things. Im hearing more and more rumblings about a growing shortage of truck drivers beginning this year and then continuing for the next few. Driver shortage the only business resource dedicated to the. When we saw unemployment rates of near 10%, demand wasnt that high either.
She spoke wednesday in a session at the 2019 ftr transportation conference. Ftr shippers condition index remains down, due to challenging. While ftr associates is now forecasting 2005 to end with the. New york trucking companies may face a 30 percent surge in wages by 2014 as rising demand for freight shipments threatens to push the industrys driver shortage. Ubs the driver shortage has hiked trucking rates for industries that rely on this form of transport. Ftr associates predicts decline in truck tonne miles.
Driver shortage getting worse as freight grows, officials say. May 02, 2011 over a series of several articles, heavy duty trucking is looking at the causes of the pending driver shortage, and seeking solutions to minimize its impact. Nov 30, 2015 ftr shippers condition index remains down, due to challenging market conditions like last month, the current state of affairs was presented in somewhat stark terms in the most recent edition of the shippers condition index sci recently issued by freight transportation consultancy ftr. Ata releases updated driver shortage report and forecast. The driver shortage has bp capital portfolio manager trip rodgers predicting u.
In fact, according to, noel perry, the managing director and senior consultant at ftr associates, is forecasting that the driver shortage could be close to 200,000 this year and then swell to as much as 400,000 in 2011 and 2012. Ftrs trucking conditions index for march showed its first negative reading in several years, reflecting a softening environment for. Truckings driver shortage is getting worse, as freight demand grows modestly and the qualified driver corps dwindles, a trend thats making drivers more desirable than equipment, industry. Understanding current trends and identifying future opportunities is essential. Freight transportation research ftr associates is an influential transport industry organization. Trucking industry struggles with growing driver shortage more than 70 percent of goods consumed in the u. Ftr associates says truck driver shortage will improve feb 16, 2005 ftr associates projects the driver shortage will shrink slightly to just over 100,000 drivers in the second quarter of 2005.
Jan 09, 2018 trucking industry struggles with growing driver shortage more than 70 percent of goods consumed in the u. Driver shortage, hos rules top atri list of industry concerns bulk. The american trucking associations says the industry needs to hire. Bls associate administrator kristen monaco discusses why the driver. Ftr often faces skepticism about how fleets can possibly fill these trucks given a severe driver shortage and a national unemployment rate of 3. Freight forecasting and research firm ftr associates has predicted truck tonne miles in the us will be down 2. According to the american trucking associations, the trucking industry is currently short around 48,000 drivers with that number expected to surge to 890,000 by 2025. There is a growing demand to better understand how the economy impacts freight, driver labor, and truck capacity. If all implemented, a wave of regulations in the u. Steve says that according to research firm ftr associates, effective truckload utilization since 2011 has been running in the high 90s to 100 percent, with the low points still up in the 90s. Todays shortage of about 200,000 drivers will increase to around.
The crunch is expected to become even more dire next year when stricter federal limits on the number of hours drivers can work take effect. Truckers are hauling more even with large us driver shortage. Capital partners and a former ruan transportation executive. One of the earliest references to a truck driver shortage, then called the.
The index is a compilation of factors affecting trucking. Most notable is retail, which needs road transport for deliveries to brickandmortar stores. Jul 11, 20 an incoming regulatory tsunami could leave the american trucking industry in need of a million drivers by 2016, if all the new regulations currently being considered are implemented. At the end of the day, the driver shortage can be explained by looking at the industrys turnover rates and the nations labor statistics. As the marketplace expands, even slowly as we are forecasting, there will be a driver shortage, noel perry, an analyst with logistics consultancy firm ftr associates, said at an industry. Steve explains that a key factor is capacity utilization rate and the narrowing gap between the cyclical highs and lows of utilization. Our founder and president, dennis trepanier, has over 40 years experience in the industry. Increased freight means the truck driver shortage is expected be 400,000 by the end of 2017, the freight intelligence group ftr associates told.
From freight demand to system capacity to equipment production, ftr adds over 270 years of industry experience into business decisionmaking. Ftr s monthly trucking conditions index reached an. The fuel shortages for vehicles will start running out. Reuters quote noel perry, an analyst with logistics consultancy firm ftr associates as predicting. Active truck utilization and the truckload rate have also continued to ease. The ability to put drivers in vehicles, the company pointed out, has a. He took the time to chat with us about what has happened thus far in 2018, and whats head in the second half of 2018 and next year. In a june 9, 2011 meeting, a ftr associates economists declared that the trucking industrys wellpublicized driver shortage will grow next year as fewer new hires replace retiring drivers and drivers removed due to immigration and trucking regulations. Capacity to remain tight, driver shortage to worsen. But how will the industry handle that amid a growing driver shortage.
This past october, the american trucking associations warned that the trucking industry could be short 50,000 drivers by the end of 2017. Oct 01, 2007 ftr associates predicts decline in truck tonne miles by truck news october 1, 2007 indianapolis, ind. Influence government policies that advance the interests of the trucking industry. As carriers deal with the realities of todays more severe driver shortage, many are looking for ways to be more flexible in their hiring standards while maintaining safe operations, ftr notes in its trucking update. And there is little doubt about the impact that a serious truck driver shortage is likely to have on highway safety. Our subscribers rely on ftrs freight forecasting trends for improved forecasting in shipping, trucking, rail.
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