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Truck Driver Shortage, Freight Rates, and Aging Drivers
Having grown up around the trucking industry — with his dad and several uncles serving as truck drivers — it’s only natural Jeron found his way into the industry as well. Jeron joined ATS in 2018 as a member of the marketing team, where he grew his knowledge of the trucking industry substantially. Now as the driver recruiting manager, he is responsible for ensuring a smooth recruiting process in order to create a quality driver experience.
Understanding the Truck Driver Shortage: Insights from ATS Recruiters
There's a lot of talk about a truck driver shortage. Is it real? Jeron Rennie, Recruiting Manager at ATS, and Robbie Schaefer, Lead Recruiter at ATS, discuss this important issue.
Is There a Driver Shortage?
Robbie starts by addressing the question: Is there a truck driver shortage today? He believes there isn't. Instead, it seems there might be too many drivers for the amount of freight available. This oversupply of drivers has caused freight rates to drop since shippers don't have to pay high rates when there are plenty of drivers.
Jeron adds that they've seen a big increase in driver applications over the past few years, especially during the COVID-19 pandemic when freight rates were high. Many new drivers entered the industry to take advantage of these high rates. However, even though more people are applying, the quality of these applicants has gone down.
Quality vs. Quantity in Driver Applications
Before the pandemic, ATS hired about 2.5 percent to 3 percent of the applications they received. Today, that number is down to around 1 percent. This drop is because many drivers apply to multiple companies at once and frequently change jobs in search of better pay. This job-hopping makes it harder for them to meet ATS' strict hiring standards, which include a stable job history and a clean driving record.
When Jeron and Robbie talk about "quality," they don't mean that drivers are bad at their jobs. They mean that many drivers don't meet the industry's requirements because they switch jobs too often or have issues on their records.
The Aging Workforce and Future Concerns
One of the biggest challenges is the aging truck driver workforce. The average truck driver is around 47 years old, much older than the average worker in other industries, who is about 38. Most new truck drivers are around 35 years old, meaning trucking is often a second or third career for them.
As older drivers retire, not enough younger drivers are joining to replace them. This could lead to a real driver shortage in the near future.
Attracting Younger Drivers
To prevent a future shortage, the industry needs to attract younger drivers. This means changing how people see truck driving and highlighting its benefits. In the past, truck drivers were seen as modern-day cowboys, enjoying the freedom of the open road. During the pandemic, people appreciated truck drivers more because they kept supply chains running.
Jeron and Robbie suggest the industry should build on this positive image and promote the benefits of trucking. These include good pay, the chance to travel and see the country, and the important role drivers play in the economy.
The Importance of Truck Drivers
Truck drivers are crucial to our society. Without them, supply chains would stop. Robbie and Jeron explain that truck drivers have a huge impact on both local and global economies. Even a one-day disruption can lead to empty store shelves and major economic problems if it lasts longer.
They emphasize the need to recognize and appreciate the hard work of truck drivers. It's not just about earning a paycheck; it's about making a real difference by ensuring goods are delivered on time.
Take an Inside Look at the Trucking Industry
While there isn't an immediate truck driver shortage, there are challenges that could lead to one soon. The aging workforce, lower quality of new applicants, and the need to attract younger drivers are pressing issues.
For anyone considering a trucking career or already in the industry, their advice is clear: Research potential employers thoroughly, aim for long-term stability with a company, and take pride in the critical role you play in keeping the economy moving.
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