Supply & Demand: Trucking Industry Driver Shortage

The reasons for the driver shortage can be debated amongst several issues, but the bottom line is that freight companies have been turning down business because they already have enough problems dealing with the business they have. In an economy where supply (capacity) and demand (freight) aren't matching up something has to give. The trucking industry is at full capacity and there is excess demand for trucks and the movement of freight. The trucks are there in many instances, but there is not enough qualified drivers to operate the tractors.

"The American Trucking Associations has estimated that there was a shortage of 30,000 qualified drivers earlier this year, a number on track to rise to 200,000 over the next decade. Trucking companies are turning down business for want of workers." This is quoted from an article in the New York Times on August 9th: http://www.nytimes.com/2014/08/10/upshot/the-trucking-industry-needs-more-drivers-it-should-try-paying-more.html

With the new hours of service regulations allowing for less drive time there doesn't seem to be an immediate solution in sight. The most likely scenario is that rates will rise in the near future. Shippers will be asked to pay a premium to have their freight hauled, and the ones that don't pay will suffer the consequences. They will experience delays in deliveries and other service issues. In some cases, especially with shippers with less desirable freight, their shipments may not even be picked up. Shipper's should take heed and make sure they are aligned with a long term strategic partner to ensure minimal disruption to their freight operations.

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