The U.S. doesn’t have enough truckers, and it’s starting to cause prices of about everything to rise

05/24/2018

A recent Washington Post Article, cited pay increases of 15 – 20% for drivers:

Joyce Brenny, chief executive of Brenny Transportation in Minnesota, gave her truck drivers a 15 percent raise this year, but she still can’t find enough workers for a job that now pays $80,000 a year.

Amazon, for example, just implemented a 20 percent hike for its Prime program that delivers goods to customers in two days.

The article goes on to state the United States has had a truck driver shortage for years, but experts say it’s hitting a crisis level this year. There’s even more demand for truckers now as just about every sector of the economy is expanding and online sales continue to soar. On top of that, the federal government imposed a new rule in December that requires drivers to be on the road for no more than 11 hours at a time and track their time by an electronic device so they can’t cheat.

Joyce Brenny was quoted as stating “A year ago, when customers would call Brenny, she could almost always get their goods loaded on a truck and moving within a day or two. Now she’s warning customers it could take two weeks to find an available truck and driver.”

According to DAT Solutions, as driver pay rises quickly and diesel fuel costs tick up, shipping companies are charging higher and higher rates to move goods. It now costs more than $1.85 a mile to ship a “dry good” that doesn’t require refrigeration or special accommodation, a nearly 40 percent increase from the price a year ago.

It is a tight market with no short-term relief in sight. Advanced planning and working closely with a logistics provider is more critical than ever for success.