The topic of the truck driver shortage has been a subject of debate and contention within the logistics and transportation industry. While some, like Craig Fuller, CEO of FreightWaves, assert that the driver shortage is a myth perpetuated by organizations like the American Trucking Association (ATA), there is substantial evidence to suggest that driver shortages are a real and global issue.
One of the key points made by Fuller is that the ATA primarily represents mid- and large-size fleets, where driver shortages may indeed be more concerning due to their scale of operations. However, it’s important to recognize that the driver shortage issue extends beyond the ATA’s purview and impacts a wide range of trucking companies, including smaller and regional operators.
Driver shortages are not limited to the United States; they are a global phenomenon. The International Road Transport Union (IRU) reported a significant increase in driver shortages in Europe, Mexico, and China. These shortages have been driven by various structural factors within the industry, including an aging workforce, barriers to entry for younger drivers, under-representation of women in the field, and lifestyle preferences that deter potential job seekers from considering long-haul trucking.
It’s worth noting that the trucking industry has faced a tightening labor market for some time, and this issue is likely to persist over the long term. Even during the looming freight recession, the labor supply remains chronically tight, with numerous open CDL driver positions. This tight labor market is further evidenced by microeconomic indicators, including significant pay increases for truck drivers.
The trucking industry has witnessed notable wage growth in recent years. According to the U.S. Department of Labor (USDOL), hourly earnings in for-hire general freight have risen by 23.5% since the beginning of 2020. ATA surveys also reveal an 18% increase in annual compensation for truckload drivers between 2019 and 2021, with the majority of truckload carriers increasing driver pay in 2021.
While the pandemic may have contributed to some of the increased demand for drivers, it does not negate the underlying issue of a driver shortage. The freight recovery following the pandemic may temporarily alleviate the problem, but it is expected to persist as freight volumes rebound.
The ATA, which represents a diverse range of trucking companies, is advocating for policies to expand the pool of talent and address the driver shortage to support the economy and ensure the efficient movement of goods to market.
In conclusion, the debate over the existence of a truck driver shortage is ongoing. While some, like Craig Fuller, challenge its significance, global trends and economic indicators suggest that the issue is real and multifaceted, impacting companies of all sizes within the trucking industry. The persistence of the driver shortage will likely necessitate continued efforts to attract and retain talent in the field