Truck Driver Shortages Impact the Transportation Industry

Craig Raucher has performed leadership functions for major transportation companies over the course of 35 years in the transportation industry. Most recently, as the senior vice president of Total Freight Solutions, Craig Raucher was responsible for the company’s various means of transportation, including trucking and rail.

According to a recent Wall Street Journal article, a shortage of truck drivers is impacting the transportation sector in a variety of ways. The article states that driver shortages are creating issues for smaller truck fleets and increasing reliance on rail freight.

As a large number of truck drivers from the Baby Boomer generation retire, the article explains, there aren’t enough new drivers joining the profession to fill open positions created by retirees. The American Trucking Associations forecasts a shortage of 35,000 to 40,000 drivers, which poses a particular challenge for businesses with smaller truck fleets. For many small fleets, it has become difficult to compete for drivers with larger companies that can offer higher pay, better benefits, and bonuses.

While small truck fleets work to cope with driver shortages, a report from the Council of Supply Chain Management Professionals indicates that intermodal shipment, or the combination of truck and rail freight, has increased by 4.5 percent. The report’s author notes that the railroad industry is also raising rates in certain markets.

Source: http://craigraucher.weebly.com/blog/truck-driver-shortages-impact-the-transportation-industry

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