Truck drivers are the basic unit of transportation capacity and the glue that holds supply chains together. As the marketplace expands, even slowly as we are forecasting, there will be a driver shortage, noel perry, an analyst with logistics consultancy firm ftr associates, said at an industry. Farrow is it time to rethink shippercarrier contracts. American transportation consultants ftr associates is forecasting steadilydeteriorating conditions for shipping capacity through 2017, in reaction to stronger demand and the electronic logging device eld mandate.
Carriers are turning down loads in epic proportions, and its occurring. New us regulations could leave industry short a million drivers by 2016. The dominoeffect of the driver shortage may be a benefit to drivers. The experts at ftr associates had some tips for both truckers and shippers on how to deal with the coming labour crunch. Labor department analysis questions driver shortage drivers. Truck driver shortage may increase pay, shipping time. Critical reasons why the industry is suffering from a truck driver shortage 15.
Each version is updated as official changes are published in the. We are short of highquality, professional, truck drivers. As mark reports, the consultancy ftr associates estimates the u. Ftrs shippers conditions index for january dropped about a point from december to a 3. Ftr provides freight forecasting and analysis for shipping, trucking, rail, intermodal, and equipment markets. How much will transportation budgets be affected by hurricanes. It has been getting harder to draw new entrants into the market. In fact, according to, noel perry, the managing director and senior consultant at ftr associates, is forecasting that the driver shortage could be close to 200,000 this year and then swell to as much as 400,000 in 2011 and 2012. Ecommerce is driving more stringent delivery schedules and more visibility into the supply chain. A platform for the trade and purchase of nz financial transmission rights. Driver shortage ripples across trucking industry the new state of logistics report says tight trucking capacity may raise costs for buyers of freight transportation. Ftr associates projects the driver shortage will shrink slightly to just over 100,000 drivers in the second quarter of 2005. This is not the story of the broker who cried wolf, friends, its the industry reality right now.
Apr 08, 2018 us truck driver shortage points to bigger problems. We tend to think of the driver shortage as the trucking industrys problem. Oct 26, 2015 trucking industry faces severe driver shortage. Us truck driver shortage getting worse, turnover figures show. Ata relies on demographic driver data, population growth by age data, tractor counts and projected economic and industry growth information, as noted in its 2015 driver shortage analysis. Driver shortage the only business resource dedicated to. According to ftr s recent report, added regulations will increase the driver shorter to a 210,000 driver deficit. Truck driver shortage impacts highway safety michigan. To describe the online activity around this topic, frenzy isnt too strong of a word. The driver shortage is a significant problem, and while many industries are experiencing a talent shortage, trucking is unique in that it has several factors multiplying this challenge. In mexico, the executives we spoke with had little concern about a shortage of drivers, but. Us truck driver shortage getting worse, turnover figures show william b. Driver shortage getting worse as freight grows, officials say. The shortage of drivers comes as the industry looks to a future with selfdriving, autonomous trucks.
The driver shortage continues to be a headwind for the. Its essentially moot to think of digital freightmatching in the old spot vs. While the reading in january was still positive, the measure has dropped each of the last three months and in january was the lowest since october 2018. Kristen monaco, associate commissioner of the bureau of labor statistics and a leading researcher in truck driver dynamics, clarified some of. An incoming regulatory tsunami could leave the american trucking industry in need of a million drivers by 2016, if all the new regulations currently being considered are implemented. If the driver had no previous dotregulated employers, this must be documented. In a june 9, 2011 meeting, a ftr associates economists declared that the trucking industrys wellpublicized driver shortage will grow next year as fewer new hires replace retiring drivers and drivers removed due to immigration and trucking regulations. Trucking companies recruiting women to fill driver shortage bulk. Changing requirements such as hoursofservice pulls drivers out of the available pool to use and further challenges the demand for drivers. With the unemployment rate so high, why is there a shortage.
Feb 09, 2018 there arent enough truckers, and thats pinching u. Im hearing more and more rumblings about a growing shortage of truck drivers beginning this year and then continuing for the next few. Freight condition index signals new challenges for supply chain shippers condition index points to ongoing tough market conditions significant driver shortage looms ahead all ftr associates news. With a potential economic slowdown and a severe driver shortage buffeting fleets from. Eld rollout will lead to substantial capacity crunch. Ftr associates tom moore national private truck council. With over 80 speakers and panelists, and 500 attendees, the conference is the premier transportation forecasting event of the year. Trucking has a turnover problem, not a driver shortage.
Ftr associates is sticking with its forecast that the nation will need to hire an additional 160,000 drivers by 2016 in order to handle what is projected to be increasing freight demandand most of those drivers will be needed by tl fleets. Increased commercial driver training and limits on work hours may make the truck driver shortage worse, industry analysts say. Jul 11, 20 new us regulations could leave industry short a million drivers by 2016. Turnover rates never seem to get down below 40%, said vise. Significant driver shortage looms ahead supply chain 247. The demand for truck drivers is actually increasing, despite the dragging recession. Sep 25, 2014 trucking companies raise wages as driver shortage grows. Capacity tight, drivers needed in fact, projections from freight transportation forecasting consultancy ftr associates estimate that this problem is likely to get worse, and by 2014 the driver shortage could be in the 250,000 range. There is no perennial shortage she tells the ftr conference in. The federal travel regulation ftr enumerates the travel and relocation policy for all title 5 executive agency employees. If youre thinking about an increase in pay, this is probably the time. Ftr s shippers conditions index slides again in january to a 3. The driver shortage has certainly help boost driver compensation which has been long overdue.
A growing driver shortage, ongoing regulatory impacts, and an improving economy are all playing a part in creating a longterm problematic supply chain issue. Theres been a trucker shortage since the middle of 2010, and the shortfall peaked at about 253,000 drivers at the beginning of 2014, according to ftr associates. Oct 14, 2007 ftr associates, a leading transportation freight forecasting and research firm, held their annual freight transportation conference in indianapolis, in. However, some companies are paying more to try to fill jobs. Monaco, an associate commissioner at the department of labors bureau of labor statistics, spoke wednesday at the ftr transportation. Freight transportation research ftr associates is an influential transport industry organization. Trucking firms hope to fill driver shortage by pimping out. Most recent sci shippers conditions index articles ftr. The total eclipsed 200,000 in last years fourth quarter for the first time. Ata estimates that the current driver shortage tops 35,000 driver candidates, with an additional 240,000 new truck drivers needed by 2023 to keep up with freight growth. Eric starks, president of transportation forecasting for ftr associates, said recently that the u. And truckings productivity is upthe industry sold or decommissioned 20.
The ability to put drivers in vehicles, the company pointed out, has a. Ftr technology is a florida based, fullservice restaurant technology company. The common feeling is that this current capacity crunch is here to stay for another 18 to 24 months. View ftr historial stock data and compare to other stocks and exchanges. With a potential economic slowdown and a severe driver shortage. Todays shortage of about 200,000 drivers will increase to. Trucking industry trends show that, in addition to a shortage in qualified drivers, the need for drivers is increasing, further exacerbating the deficit. Trucking companies need more drivers at the wheel news. One of the benefits of digitization of freightmatching is that you can build robust carrier selection criteria into the algorithms, he said. We partner with independent restaurant owners to develop technology solutions that increase sales, reduce costs, and turn happy customers into repeat business. According to the american trucking associations, the trucking industry is currently short around 48,000 drivers with that number expected to surge to 890,000 by 2025. However, in the short term the really big problem is not a lack of trucker jobs, but a dire shortage of alltoohuman truckers. Over the last 15 years there has been a steady increase in average driver age, rising from 45. Kristen monaco, an associate commissioner at the bureau of labor.
Transportation forecasting article about transportation. Jun 10, 2014 market conditions continue to favor motor carriers, according to ftr data strong industry fundamentals for the trucking sector appear to be intact, based on the most recent edition of the trucking conditions index tci recently issued by freight transportation consultancy ftr. Trucking companies raise wages as driver shortage grows. Firm predicts driver shortage to improve fleet owner. Breaking down the truck capacity shortage supply chain dive. Ftr associates estimates a current short age of about 10,000 drivers but warns of a 124,000 driver shortfall by late 2011.
For over a year now, fleets have been saying that they could haul more freight if. People working in the trucking industry say a shortage of drivers is looming larger than ever and freight and logistics companies say they cant fill positions as fast as baby boomers are leaving. New york trucking companies may face a 30 percent surge in wages by 2014 as rising demand for freight shipments threatens to push the industrys driver shortage. No end in sight for worsening driver shortage fleet owner. Even so, trucking companies, especially truckload carriers, often have great difficulty finding, hiring and keeping drivers. No container or straight truck or trailer moves without, at some point, a truck driver. Ftr said that the current sci level continues to show the moratorium in truckload rate growth during the summer months, adding that it is expected that market conditions will become more difficult for shippers in 2016 en route to the expected negative impact regulations are expected to have on capacity, with the regulatory crunch expected to be in full. Amid the job losses of the past decade and the overqualified, inexperienced worker saturated job market, the trucking industry still faces a driver shortage. The current ftr includes amendments from ftr amendment 202001, effective november 15, 2019. The shortfall probably will widen by the end of this year to 251,000 truckers, the biggest deficit in nine years, and reach a record 338,000 by the end of 2015, according to ftr s driver. In december ftr transportation intelligence projected freight growth. Ftr associates estimated that there was a shortage of 200,000 drivers in the united states in the first quarter of 2011. Our subscribers rely on ftrs freight forecasting trends for improved forecasting in shipping, trucking, rail. For carriers, this is the time to ramp up your recruiting efforts, said perry.
Trucker rests boost shipper costs on productivity drop. Bls monaco makes clear her views on driver shortage. According to a report by truck news, during the industry forecaster s state of freight webinar this week, perry and ftr director jonathan starks focused on the impact of the new hoursofservice rules, which went into effect july 1. Trucking industry trends show that, in addition to a shortage in qualified drivers, the need for. Ata is expected to announce updated figures on the driver shortage later this month. I expect the driver shortage to get worse in the fourth quarter, said noel perry, managing director at consultant ftr associates, nashville, ind.
Avery vise, vp of trucking research for ftr associates, summed it up this way. Carrier must create a written record for each previous employer contacted. Us truck driver shortage points to bigger problems. Jan 12, 2018 truckload capacity will remain tight and rates high, but both may moderate somewhat as market forces come into play, according to ftr analysts. In the october trucking update, you will find ftrs truck driver pressure index. Driver shortage ripples across trucking industry wsj. Trucking capacity and rate outlook for 2017 road scholar. Avery vise, vice president of research for trucking analysts ftr, agreed. How does one explain the fact that out of a pool of. Driver shortage issues continues to raise questions but not provide enough answers no matter how many ways it is sliced and diced, one thing is certain when it comes to truck driver turnover. From freight demand to system capacity to equipment production, ftr adds over 270 years of industry experience into business decisionmaking. Trucking industry expected to see slower growth in 2019. The code of federal regulations cfr is available at ecfr. Avery vise vp of trucking research with ftr and associates joins.
House of commons skills and workforce planning in the road. Some people believe that the move toward more dynamic, technologydriven interactions between shippers, carriers, and brokers could mean changes in. Get the latest full company report for frontier communications corporation from zacks investment research. If all implemented, a wave of regulations in the u. The productivity hit from the hours hos changes will exacerbate the driver shortage as will several other. Us bureau of transportation statistics and federal highway administration. In depth view into ftr frontier communications stock including the latest price, news, dividend history, earnings information and financials. We expect the driver shortage, including the contributing factor of problematic driver retention, to remain a primary concern for the industry this year and for. The driver shortage is currently estimated at 35,000 lgv drivers 2. Our founder and president, dennis trepanier, has over 40 years experience in the industry. Ata and ftr defend their driver shortage numbers as being based on more than simply what employers say.
Ata joins president trump in recognizing americas truck drivers at white house arlington, virginia today, the american trucking associations joined president trump at an event on the white house lawn to recognize the critical role our nations truck drivers are playing in. Reuters quote noel perry, an analyst with logistics consultancy firm ftr associates as predicting. Capacity to remain tight, driver shortage to worsen. While the issue of driver shortages has been discussed for decades, there seems to be a more acute shortage today, says steve. Manage your supply chain when capacity is tight and costs are on the rise. If you havent already heard, the capacity crunch driver shortage everyone has been predicting has arrived, and its packing a mean punch. Monaco, an associate commissioner of the dols bureau of labor statistics. We have often said that the notion of a driver shortage is a myth, said todd. The graph below with data from statistics canada, shows this trend quite clearly. Ftr stock research, profile, news, analyst ratings, key statistics, fundamentals, stock price, charts, earnings. And you want to be particularly solicitous of your drivers.
Frontier communications corporation ftr stock price today. Whats behind the tight freight market, and how long will. Driver shortage persists if your business depends on truck shipping, you are aware that driver shortages continue to contribute to a sporadic shortfall of available trucking capacity. Despite temporary gain, ftr shipper conditions index calls. Ftr frontier communications corporation summary, stock. Federal regulations could worsen truck driver shortages. Follow ftrs shipping conditions index for the most uptodate outlook on current. Tight capacity, rate increases projected to continue. Driver shortage issues continues to raise questions but. Market conditions continue to favor motor carriers, according.
The ftr transportation conference is the only conference that brings together all the different aspects of the freight transportation world into one place. Bls associate administrator kristen monaco discusses why the driver. Ftr s forecast is for the driver shortage to be much worse than what the industry experienced in 2004 and 2005. At the end of the day, the driver shortage can be explained by looking at the industrys turnover rates and the nations labor statistics. You are talking about a driver shortage thats coming, shippers rates.
What are trucking companies doing to solve the driver shortage. Four forces to watch in trucking and rail freight mckinsey. She spoke wednesday in a session at the 2019 ftr transportation conference. Ftr associates conference outlook for transportation industry. Americas trucking industry is the lifeblood of the u. And there is little doubt about the impact that a serious truck driver shortage is likely to have on highway safety. We are also reaching out to partners and stakeholders as a matter of urgency. Nearly every period of economic growth is accompanied by a driver shortage, including the recovery that began in 2009. Improving economy squeezes truck driver supply reuters. Jun 23, 2015 despite temporary gain, ftr shipper conditions index calls for a rough road ahead with overall market conditions for shippers being largely viewed as difficult, the most recent edition of the shippers conditions index sci from freight transportation consultancy ftr is calling for more of the same in the coming months, even with signs of improvement in april, the most recent month which the. Frontier communications corporation full company report. Oct 28, 2017 and as long as the products are still on the shelves we dont have a goddamn driver shortage.
In the short term, we are continuing to collect statistics and monitor the trend. The outlook for freight remains positive, growing at a rate of 2. A new normal in the truckload industry talking logistics. This years conference, americas freight transportation through 2011, featured guest speakers and p. Increased freight means the truck driver shortage is expected be 400,000 by the end of 2017, the freight intelligence group ftr associates told.
966 262 692 584 385 141 135 1558 436 1204 34 865 1536 1276 638 856 1380 1370 1177 892 1372 1530 957 692 518 827 67 19 967 209