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May 14, 2018

Supply Chain Crisis: America Needs More Truckers

Written by SmartSense | Supply Chain

In a previous post, we reported the recent update to the ELD Mandate for livestock truckers, an urgent issue that pits recommendations for the transport of live animals against the new federal regulations. In fact, some trucking industry authorities claim that the ELD sanctions may result in drivers leaving the field, contributing to an already challenging driver shortage. In this post, we summarize some of the factors contributing to the shortage, and because we support all workers who keep the supply chain moving, some possible solutions.

 

America Needs More Truckers

NPR recently featured a story detailing some of the consequences of the growing shortage of drivers in the trucking industry, which is struggling to attract new recruits. The primary negative impact is on the economy. The need to raise driver pay to retain drivers means that costs rise for both suppliers and retail prices. Additionally, a decrease in store inventories and an increase in delayed shipping times leads to a real problem in our era of on-demand consumer expectations.

A report  from the American Trucking Association (ATA) noted that more than 70% of consumer goods in the United States are currently transported by trucks, a figure predicted to rise. That’s created a crisis, since the industry must hire about 900,000 more drivers to meet escalating demand from a pool lacking qualified drivers.

An analysis  conducted by DAT Solutions at the start of 2018 counted only one truck available for every 12 loads needing shipment, the lowest ratio since 2005. In such an unusually tight market, retailers and manufacturers have been forced to suspend nonessential shipments and pay abnormally high rates to ensure goods meet promised delivery times.

 

Demographics Are a Prime Factor

One of the main reasons for the fleet shortage is that drivers are aging. According to the Bureau of Labor Statistics, the typical driver is a white male aged 55. That’s about 10 years older than the average age across other comparable industries, such as construction. More drivers are retiring sooner than later, leaving huge employment gaps not easily filled.

Part of the problem is that it’s difficulty to hire new, younger workers. The federal government requires that drivers must be 21 years old to hold an Interstate Commercial Drivers License. This three-year gap after high school graduation means that potential drivers are most likely going to be drawn to other employment opportunities during that time.

Then there’s the paucity of women in the industry. Women make up half of the nation’s workforce, but only 6% of commercial truck drivers. This is a huge demographic being overlooked! Stereotypes of trucking as a “macho” job inhibit women from becoming carriers. Rightfully so, as long as these sexist perceptions persist.

 

The Challenge of the Trucker Lifestyle

Currently, the lifestyle of a trucker is hardly ideal. Assigned to routes that can keep them on the road for long periods of time, where they must adapt to living in a truck and showering in rest areas, they return home only a few times a month. These absences are certainly a strain on family relationships.

There’s also poor nutrition. It’s not easy to eat healthy on the road. The trucker’s typical high-calorie, high-sugar diet combined with a sedentary job lacking exercise can lead to major health problems, including high blood pressure, diabetes, and obesity.

Sleep deprivation is also chronic. Under the pressure of tight deliveries, drivers too frequently skip sleep breaks and use artificial stimulants to stay awake. Lack of sleep contributes to health problems, as well as poor judgment and forgetfulness – side effects prone to causing accidents that endanger the public.

 

Can We Solve the Truck Driver Shortage?

No single solution can fix such a complex problem. Instead, a combination of marketplace and policy responses can make significant headway. LTX Solutions  outlines some effective approaches:

  • Raise driver pay coupled with a comprehensive benefits package
  • Decrease time on the road with less-than-truckload shipping
  • Increase time at home with more local routes
  • Lower the regulated driver age to 18
  • Target more women and change the prevailing macho culture

 

Without taking steps such as these, the shortage will remain a serious concern for the industry, the supply chain, and the economy at large.

 

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Topics: Supply Chain

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