Friday, June 29, 2012

OTR Driver Shortage Worsens! June Report

By Paul Davidson, USA TODAY

A worsening shortage of truck drivers is pushing up freight rates and delaying some deliveries, defying the weak economy, high unemployment and falling gasoline prices.
"It's getting harder to get drivers," says Mike Card, president of Combined Transport of Central Point, Ore., and incoming chairman of the American Trucking Associations. "I could hire 50 guys right now." He now employs 393 drivers.
Many Baby Boomers are retiring and fewer young people are interested in long-haul-trucking careers that often require drivers to be away from home for weeks at a time, says Ben Cubitt, senior vice president of Transplace, which manages freight delivery for businesses.

Despite the 8.2% national jobless rate, many unemployed construction and factory workers can't afford the $4,000 to $6,000 cost of a six-week driver-training course, says Rosalyn Wilson, senior business analyst of consulting firm Delcan.

In addition, she says, truck drivers must be at least 21, leading many 18-year-old high school graduates who might consider trucking to instead pursue plumbing or other trades.



Another barrier: The government began publicizing the safety ratings of trucking companies 18 months ago, prompting some carriers to hire only drivers with unblemished records and narrowing the pool of qualified applicants.

The annual driver turnover rate at large carriers rose to a four-year high of 90% in the first quarter from 75% a year ago, according to the trucking association. The turnover rate at small carriers jumped even more sharply in that period, to 71% from 50%.

The shortage has increased average driver salaries about 5% this year to $45,000 to $50,000, says Noel Perry, managing director at FTR Associates.

The crunch is expected to become even more dire next year when stricter federal limits on the number of hours drivers can work take effect. That safety move will force companies to hire more drivers.

Driver shortages are effectively limiting truck capacity and helping push up freight rates by 2% to 5% this year, despite the sluggish economy, says analyst Benjamin Hartford of research firm R.W. Baird. Also driving up rates are rising wages and truck prices that have increased as much as 40% the past few years because of modernized engines that must meet tougher emissions rules.

Card of Combined Transport says 10% of his deliveries are one or two days late because he doesn't have enough drivers.

Saturday, June 23, 2012

DOT Orders WTSA US Express to Shut Down

FMCSA 15-12
Friday, June 08, 2012
Contact: Shashunga Clayton
Tel.: (202) 366-9999


U.S. Department of Transportation Orders WTSA US Express to Shut Down

FMCSA finds Wisconsin-based truck company to be imminent safety hazard

WASHINGTON, DC– The U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) ordered Wisconsin-based truck company WTSA US Express to immediately cease all transportation services, based on serious safety violations that posed an imminent hazard to public safety.
     
FMCSA shut down WTSA US Express following an extensive review of the company’s operations that discovered multiple federal safety violations in the areas of drivers' hours-of-service compliance, driver qualifications and drug testing requirements.
"Commercial truck and bus companies that blatantly violate federal safety standards and jeopardize public safety will be shut down. Safety is always our top priority,” said U.S. Transportation Secretary Ray LaHood.
     
FMCSA immediately placed WTSA US Express out of service after agency investigators found a range of safety infractions that substantially increased the likelihood of serious injury to the traveling public. For example, investigators uncovered that the company employed drivers without valid commercial driver’s licenses and medical certificates, and the company allowed its drivers to operate without records of duty status. Additionally, WTSA US Express did not test its drivers for controlled substances.

“Our aggressive safety enforcement efforts, designed to shut down the bad actors, are effectively raising the bar for truck and bus safety,” said FMCSA Administrator Anne S. Ferro. "We will continue to do everything possible to protect the traveling public and help save lives.”

On May 30, in the largest single safety crackdown in the agency’s history, FMCSA shut down 26 bus operations, declaring them imminent hazards to public safety, and ordered 10 individual bus company owners, managers and employees to cease all passenger transportation operations. The bus companies transported over 1,800 passengers a day along Interstate-95, from New York to Florida. Further, earlier this month, FMCSA and its partners conducted safety inspections of motorcoaches, tour buses, school buses and other commercial passenger buses in 13 states and the District of Columbia resulting in over 2,200 safety inspections and the successful removal of 116 commercial motor vehicle drivers and 169 buses from the roadway for substantial safety violations.

A copy of the imminent hazard out-of-service orders can be viewed at http://www.fmcsa.dot.gov/documents/about/news/2012/wtsa-us-express-ih-order.pdf.

Friday, June 15, 2012

Driver turnover soars among small US truckload fleets

                   
2012-06-15

WASHINGTON, D.C. -- Driver turnover among US truckload fleets pushed higher in the first quarter, according to the American Trucking Associations.

Small truckload fleets, with revenue of less than $30 million per year, saw their turnover rates surge 16% to 71% in the first quarter, reaching their highest level since the second quarter of 2008.
Large truckload fleets saw a small increase in driver turnover to 90%, its highest rate since the first quarter of 2008.

“We were surprised that the turnover rate dipped in the fourth quarter,” said ATA’s chief economist Bob Costello. “This report of a slight rise at large fleets and a significant increase at smaller fleets matches up with what we hear regarding the health of the industry, the tightening of the labour market for drivers and demand for good, quality, experienced drivers.”

Turnover among LTL fleets remained at a “remarkably low” 8%, the ATA reported.

Bigger carriers are paying more than small carriers and the trend will continue as the driver market tightens.

Quote from Ricky Gooch:  A lot of drivers jumping ship will never work again as these drivers will get PSP scores for the first time and become un-hireable.