Got Trucks?
The American Trucking Association (ATA) released a highly interesting statistic regarding driver turnover in the latest Trucking Activity Report. According to the report, the turnover rate for over-the-road (OTR) truck drivers rose to 79% in the second quarter, making it the third quarter in a row of increased churn in the driver market. Another staggering fact from Global Insight is that in 2005, the trucking industry was 20,000 drivers short, and current forecasts for the next shortage could range from 100,000 – 300,000 by 2013.
Although 2011 has been a relatively stable year of OTR pricing, these statistics force a couple of important questions. Will North American shippers see a dramatic price increase in the near future? If the OTR driver shortage continues – combined with rising fuel costs, a rebounding economy, an increase in baby boomer driver retirement (about one in six are 55 or above), and the proposed changes to the federal commercial driver hours-of-service (HOS) regulations are approved – the increase may be inevitable.
Also, how can the transportation industry strategize on how to work with government agencies and the general public to promote programs that enable the 9% of unemployed Americans to “get back in the driver’s seat”?
Load Delivered does not pretend to have all of the answers; however, as a part of the logistics community we acknowledge the issue and are proactively strategizing both internally and with industry organizations to stimulate possible solutions.
Providing support and strategy to our customers and carriers through future market conditions will remain a top priority. Over the next several months, Load Delivered will be working with the ATA on their Driver Recruitment Campaign. The campaign promotes positive images of truck driving and aims to recruit drivers in untapped labor pools.
Helping improve the productivity of the drivers that are currently hauling is another solution. With possible issues at shippers and consignees, it will be important to try to avoid restrictive appointment times, congestion, and excessive wait times. This will minimize costs and help improve driver productivity - which in turn increases capacity. The impact of this approach may be critical should the proposed HOS changes actually take effect.
Whatever the solution(s) may be, it is clear that industry collaboration is imperative.
What’s Your (Action) Plan?
With the holiday season in full effect, it is important to consider if you, your freight, your equipment, and your company are protected. Given the spike in cargo theft over the years
(upwards of a multi-billion-dollar per year problem) and the downward spiraling effects it can have on everyone involved, it’s important to be proactive and have an action plan in place. Here are several steps you can take to help mitigate any problems before they occur:
- Require drivers to go at least 250 miles before stopping. According to the National Insurance Crime Bureau, most shipments are stolen within 200 miles from shipper.
- Require drivers to use well-lit rest/truck stops
- Require drivers to attach the King Pin to the stem of their trailers
- Require carriers/drivers to park in secure yards with lockable gates and 24-hour surveillance
- Provide drivers with securing devices (locks)
- Require drivers to make check-calls every couple of hours and provide exact location information
- Remind drivers that windows should be rolled up and doors locked when they are not in the vehicle or moving slowly
- Avoid assigning high-valued freight to new drivers with less than six months on the job
Not all cargo is considered to be high risk or attractive to criminals, but if this is something you’re questioning, it might be worthwhile to review the above steps and implement them into your security strategy. For further consultation, please reach out to your Load Delivered associate.
Hired!
Load Delivered would like to welcome five new members to our team! After an extensive interview process, these five were carefully selected out of a large number of applicants to join us. Training class commenced October 17th.
A Long-Term Commitment
For over 45 years, the Cabrini-Green Tutoring Program has been helping economically disadvantaged students succeed in elementary school and beyond. In this program, volunteers are paired up with students in an effort to provide both educational and life skill resources.
Throughout the years, the program has provided after-school tutoring for students in grades one through six. Many of the students live in or around the Cabrini Green housing project, or live in the Near North and Near West neighborhoods. The Load Delivered Logistics headquarters is just a hop skip and a jump away from Cabrini Green, and we are excited to dive in and help.
To participate, our employees have agreed to meet weekly with an assigned student to tutor them for the entire duration of a school year. The tutoring program is an intensive commitment, and we are proud of our employees who are willing to donate a significant amount of time to assist in the education of young children in need of help.
In addition to our employees giving their time to this important cause, Load Delivered is also teaming up with Encyclopedia Britannica to provide supplies to the Cabrini-Green program. The company has graciously donated boxes of educational resources/materials to the program through us, including interactive reading programs, flash cards, puzzles, and more.
We are excited to create an ongoing commitment to our community by building relationships with disadvantaged students that will last a lifetime. If you are in the Chicago area and interested in participating, please go to http://www.cabrinigreentutoring.org for more information!
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