When the pandemic first began, travel restrictions led to a shortage of truck drivers, making driver employment decrease. Now, recruiting and retaining drivers remain one of the top priorities in the trucking industry.
Diminished driver school graduation rates, early retirements along with more than 75,000 violations recorded by the clearinghouse are just a few of the catalysts for the reductions in the industry’s driver pool. Which, according to Freightwaves, estimates suggest more than 200,000 qualified CDL holders are no longer operating due to headwinds created by the pandemic as well as increased compliance with the Drug & Alcohol Clearinghouse.
In 2019, the pricing that truckers worked with, experienced a significant decline because of the shortage of jobs. With trucking companies starting to charge less for fear of not being able to work at all. Now, in 2021, according to Linchpin, the pricing that trucking companies are likely to change, either for the better or worse. If the market continues to decline, trucking companies will have to lower their prices further. But if the industry experiences growth, the prices can rise back up to what they were before the decline. If a market flip happens in 2021, that is something that can truly help the entire industry.
United Petroleum Transports announced on Wednesday the largest pay raise for their company drivers, effective in the July 9th pay period. According to Freightwaves, the amount of increase is undisclosed, but it will be permanent across all mileage brackets and hourly pay structures regardless of the time the driver has been with the company. Their independent contractors will see a pay bump as well. United Petroleum Transports also announced it is adding additional seniority levels to its driver program to reward longevity with the company.
There is a lot of optimism that driver employment will increase soon enough, with the help of companies implementing additional incentives. If you would like to learn more about the current market for driver employment, contact us today!