As you may already know, there is an increased demand for drivers in the freight industry for the past 15 years. During the Great Recession, freight volumes dropped, allowing the industry to meet demand with fewer drivers. But when volumes recovered in 2011, the driver shortage became a problem again.

As baby boomers retire, the younger generations are not stepping in to fill the positions.  Even after some carriers have made investments towards recruitment tactics using lucrative and high incentive deals, they are still falling short. Derek Leathers, CEO of Omaha-based trucking company Werner Enterprises, tells Here & Now’s Meghna Chakrabarti “Pay in the industry’s come up considerably. Here at Werner our pay’s up 17 percent over the last couple of years.” This is a clear trend among all the major trucking companies in the United States, however, they are all experiencing the same results. This is causing the supply and demand to go in favor of the carriers. Simply put, there’s just not enough capacity to fulfill your freight needs.

The carriers are slowly becoming choosy of what freight they want to cater to.

For example, you have a pallet of bricks, a pallet of golf balls and a pallet of ping pong balls. If the carrier only has space for 1 pallet to move on to the next terminal hub, they’re taking the pallet of bricks. Why? This is the most dense, heavy, least breakable with better cost per pound freight.
We have covered something like this in the past, however, the situation is about to get worse before it gets better. Federal Motor Carrier Safety Administration (FMCSA) came into effect in December. They require the use of computers in the cab, known as Electronic Logging Devices (ELDs), for almost all commercial semi-trucks. The reason for that is a new government regulation that is currently in place now but won’t be fully enforced until April of this year. To better understand how this will have an effect on the industry, a few years ago, 71% of independent and owner-operated trucking companies said they would quit if ELD mandates went into effect.

What can you do to prepare for these type of delays and issues? The simplest answer is through patience and understanding. Understand that the industry is changing and the old 2-day transit time may now be 3 or even 4 days. Also rely on us as your consulting company to help you make the best possible decision when deciding which carrier or what options to choose.