Trucking: July Tonnage Index Up, Driver Shortage Still A Problem

Truckers have been hit with many blows recently, including the hours of service changes, higher operating costs from aging fleets, and insurance requirements. The aforementioned items have done nothing but hamper the situation when it comes to the driver shortage in the trucking market. Rates are going to have to rise in order to help even out the demand, or else there will be continual backlogs of freight and service issues. Something has to give.

Yesterday, the American Trucking Association released that the For-Hire Truck Tonnage Index increased by 1.3% in July. The ATA's Chief Economist, Bob Costello noted “The solid tonnage number in July fits with the strong factory output reading and a jump in housing starts for the same month. I continue to expect moderate, but good, tonnage growth for the rest of the year.”

The railroads are seeing the benefit of the driver shortage, but that still doesn't do away with the need for the drivers once the rail is at the unloading destination. There are arguments that higher wages would help solve the problem, but the truth is nobody really knows the answer to the problem at this point. It is likely that there is not a one size fits all solution and that this problem is going to take time to correct. With the industry coming in to the busy season, it will be interesting to see how the rate increases and driver situation plays out.

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