As we begin the new year, trucking companies throughout North America are facing the same challenge – – – finding qualified truck drivers. There are several forces shaping the supply of drivers.
The coronavirus is making drivers sick and some have not come back; the virus is also causing older drivers to retire. A surge in business volumes is being experienced in various sectors of the freight economy. Strong market demand and capacity shortages are encouraging more requests from shippers for committed capacity. Having done their homework, some of the biggest shippers are prepared to pay a premium to secure the capacity they need.
As increasing numbers of people work from home, and with the closure of many restaurants and stores, there has been a remarkable upswing in Ecommerce activity. Thousands of drivers have been added to the workforce to perform local deliveries. During this period, an estimated 30,000 drivers have been disqualified in the new U.S. Drug and Alcohol Clearinghouse.
Trucking companies are creating a range of programs to recruit and retain drivers. Roehl Transport (https://www.roehl.jobs) announced a new program to add truck driving jobs to qualified people who stepped away from their commercial driving career for other non-driving employment. “The Roehl Relaunch Program is open to former truck drivers who may have left trucking for positions in construction, manufacturing, retail, and other industries as well as current drivers in local trucking jobs who may not be getting the income they need . . . Drivers who complete the Relaunch program will be given credit for their prior experience rather than starting over at entry level driver pay rates.”
A willingness of shippers to pay a premium has allowed trucking companies to increase driver compensation as a tool to recruit drivers. Over the past few months Frozen Food Express (https://www.ffeinc.com) announced a 25% increase for new linehaul solo company drivers, with team linehaul drivers seeing a 20% pay increase. Anderson Trucking Service (https://www.atsinc.com) announced a guaranteed pay program for the first 12 weeks a new driver is on board. Flatbed operators will be guaranteed pay of $5,400 for each four-week period, up to 12 weeks, with new dry van drivers receiving a $5,200 guarantee. C.R. England (https://www.crengland.com) raised pay by up to 25% and Covenant (https://www.covenanttransport.com) implemented its largest pay increase in company history. Stevens Transport (https://www.stevenstransport.com) increased driver compensation by as much as 14% in November, with Heartland Express (https://www.heartlandexpress.com) taking comp up as much as 12%. Schneider (https://www.schneider.com) announced an increase in team driver pay. The company’s website lists top earning potential at $80,000 annually for dry van drivers and $96,000 for team drivers.
Trucking companies have also implemented other types of pay programs. Roehl Transport has added more than 100 home daily truck driving jobs throughout Illinois, Indiana, Minnesota and Wisconsin. The new positions cater to experienced drivers who want to be home every day and weekends, too. Other companies have offered mileage-based regional drivers a minimum weekly pay guarantee. Positions include mileage-based dedicated regional, non-dedicated regional, over-the-road, and intermodal divisions. The minimum pay guarantee has also been added to these roles to take the volatility out of any freight volume uncertainty and ensure a stable income with opportunities for the driver to earn more.
Some trucking firms are offering a $5,000 sign on bonus, which pays out in increments during the driver’s first nine months of employment or a $10,000 sign-on bonus paid out over two years. Benefit packages now include some of the items below.
a) health, dental, vision and life insurance policies,
b) 401k and paid vacation,
c) 100% no-touch freight,
d) no forced dispatch to New York City,
e) a pet and rider policy, f
) a $3,500 referral bonus,
g) weekly home time,
h) pay-for-performance bonus,
i) subsidies for operating leases,
j) paid pre-employment evaluation and training,
k) hazard pay for the potential risk of infection,
l) providing protective masks, gloves, and hand sanitizer,
m) driver incentives in a fuel surcharge program,
n) raising truck speeds to 65 mph from 63,
o) a weekly program guaranteeing pay for inexperienced drivers, and
p) late-model tractors.
Truckers clearly are employing a range of options to recruit and retain qualified drivers to meet the needs of their customers.
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