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TRACKING THE TRENDS<br />

WHAT’S<br />

THE ANSWER?<br />

There’s no single solution to the<br />

complex driver shortage problem<br />

By Cliff Abbott<br />

To some, it’s the most important issue the trucking<br />

industry is dealing with today. To others, it’s a red<br />

herring that represents the industry’s unwillingness<br />

to adapt.<br />

What is it? It’s the truck driver shortage, of course.<br />

An October 25 update from the American Trucking Associations<br />

(ATA) claimed the trucking industry would need a<br />

record high of over 80,000 drivers by the end of 2021. That<br />

number is expected to more than double by the year 2030.<br />

The ATA numbers are calculated by subtracting the<br />

number of drivers currently in the market with an “optimal”<br />

number of drivers that is based on freight demand.<br />

“Because there are a number of factors driving the shortage,<br />

we have to take a number of different approaches,” said<br />

ATA Chief Economist Bob Costello. “The industry is raising<br />

pay at five times the historic average, but this isn’t just a<br />

pay issue. We have an aging workforce, a workforce that<br />

is overwhelmingly male, and finding ways to address those<br />

issues is key to narrowing the shortage.”<br />

The American Transportation Research Institute (ATRI)<br />

listed the driver shortage as the No. 1 concern on its Top<br />

10 Trucking Industry Issues for 2021, as determined by a<br />

survey of more than 2,500 stakeholders.<br />

The shortage was discussed at an August 21 virtual meeting<br />

of the Advisory Committee on Supply Chain Competitiveness<br />

(ACSCC) in Washington, D.C. The committee voted<br />

to recommend a holistic approach toward attracting, training,<br />

and retaining drivers by reviewing training protocols<br />

as well as actions being considered by other government<br />

agencies. Specifically mentioned were truck parking and attracting<br />

more female drivers to the industry.<br />

Detractors, however, suggest that any perceived<br />

“shortage” of drivers is simply a market response to poor<br />

working conditions and a pay scale that hasn’t kept pace<br />

with inflation.<br />

On August 24, three days after the ACSCC meeting,<br />

Owner-Operator Independent Drivers Association (OOIDA)<br />

Executive Vice President Lewie Pugh sent a letter to U.S.<br />

Commerce Secretary Gina Raimondo that described the<br />

driver shortage as a “myth.” Pugh claimed the shortage is a<br />

creation of carriers and trucking trade associations used to<br />

“support the cheapest possible labor.”<br />

Pugh stated that the Federal Motor Carrier Safety<br />

Administration (FMCSA) issues more than 400,000 new<br />

commercial driver’s licenses (CDLs) annually, providing<br />

enough drivers to solve any shortage several times over.<br />

It might be hard to convince motor carriers that are struggling<br />

to hire enough drivers to keep trucks moving that a<br />

shortage of qualified drivers is a mythical problem. At the<br />

same time, an industry that routinely experiences driver<br />

turnover rates in excess of 90% has to recognize retention<br />

as an issue. That issue was ranked second in ATRI’s 2021<br />

report.<br />

Nagle Companies’ President and CEO and TCA At-Large<br />

Officer Ed Nagle employs several strategies to keep turnover<br />

under 40% annually.<br />

“Our difference is that we don’t take new drivers,” he<br />

said. “We try to make sure they have at least five years of<br />

experience.”<br />

Nagle said paying drivers by salary has made a difference.<br />

The ATRI study proposed an expedited launch of the<br />

DRIVE Safe Act pilot program that would allow 18- to<br />

20-year-old CDL holders to drive interstate routes.<br />

“I think that’s probably one of the most ludicrous rules,”<br />

remarked Nagle. “I can send a guy 250 miles to Portsmouth,<br />

Ohio, or 200 miles to Cincinnati, but I can’t run 25 miles<br />

over the line into Michigan. Even if I bring the load here to<br />

our terminal on the south side of Toledo, I can’t use an 18-<br />

or 19-year-old (driver) to take it the rest of the way because<br />

it’s still an interstate shipment.”<br />

12 TRUCKLOAD AUTHORITY | WWW.TRUCKLOAD.ORG TCA JANUARY/FEBRUARY 2022

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