Transportation News

How High Driver Turnover in Less-Than-Truckload Carriers Impacts Shippers’ Freight Spend

Higher driver turnover in 2019 will be inevitable, and with less than two months remaining in 2018, the best thing carriers and shippers can do today is to work on reducing the burden and stress on drivers.

Industrywide Turnover Rates for Trucking

Overall, truckload fleets have seen turnover rates jump to 98 percent, and while much of the focus of higher turnover rates revolves around full truckload, the guarded less-than-truckload fleets are starting to see a shift in turnover as well.

Understanding industrywide turnover rates for trucking is essential to reducing freight spend for shippers.

High driver turnover in full truckload can have a compounding effect of eliciting higher turnover rates in Less Than Truckload carriers.

Why Driver Turnover Has Surged

Higher driver turnover rates are the result of multiple factors.

The electronic logging device (ELD) mandate, new technologies, rejected tenders, and poor shipper-trucker interactions can lead to increased job dissatisfaction among truckers.

As explained by William B Cassidy of JOC.com, drivers are often left on the sidelines when new technology is implemented.

While truckers have embraced multiple safety systems, such as onboard cameras, truckers still have a propensity not to take criticism well.

As a result, shippers and carriers need to work on creating constructive criticism and focusing on inclusion and positive recognition.

Mobile technology used by truck drivers is essential in today’s world, so avoiding it is not possible.

Turnover rates have increased 4 percent to 14 percent, marking the highest turnover rate since the first quarter of 2013.

Unfortunately, the LTL segment, which routinely serves to absorb capacity overflows in full truckload, is starting to experience problems.

This relatively low turnover rate is isolated to large fleets of Less Than Truckload carriers, and in smaller fleets, turnover rates remain near 70 percent, reports Trucking Info.com.

What High Driver Turnover Means for Shippers

Download The State of & Pricing Outlook of the Less than Truckload Shipping Market

The silver lining in current trucking turnover is that it is not as severe as its all-time high. The turnover rate was 136 percent throughout the trucking industry in 2005, but smaller fleets and Less Than Truckload carriers have typically experienced fewer problems with drivers, reports FreightWaves.com.

For shippers, issues with drivers and high turnover rates are about capacity. The average driver that increases miles driven by 500 miles per month would effectively increase their trucking capacity by 5.9 percent, and increasing the number of miles driven by 1000 miles a month could increase capacity by 11.8 percent. So, that leaves shippers with two outcomes.

Shippers either need to work with drivers to ensure that the majority of their HOS time is spent driving, not stuck in the dock or yard, or shippers will pay higher rates for any OTR transportation. In LTL, the effects of higher driver turnover will drive surcharges and may increase the risk of being hit with detention fees by carriers.

There has been some debate over whether shippers are actually paying detention charges, going so far as to reverse payment months late. Unfortunately, this notion will only undermine the willingness of drivers to work with shippers. In turn, LTL rates will skyrocket.

How to Reduce Impact of High Driver Turnover for Less Than Truckload Carriers

While freight rate hikes are expected in the coming year, the best way to address driver turnover is through changing how drivers are perceived.

Drivers are not merely a necessary evil; they are actual people. The ability of a shipper to make an impact on the lives of drivers is excellent.

Shippers that want to create positive relationships with drivers, and therefore carriers, should follow these tips:

  1. Make freight attractive. Freight should be ready when scheduled, packaged appropriately and with the right, accurate documentation.
  2. Use the right technology. Shippers should also consider using technology in their warehouses to ensure they know when a truck will arrive, even when delayed by outside influences.
  3. Reduce deadhead. The amount of capacity lost on empty backhauls is significant, so shippers should work with third-parties or within their enterprises to make the most of backhauls. The trucker already has to drive it; why not make it profitable?
  4. Expand carrier-shipper partnerships. Multiple partnerships can help protect against higher rates and inadequate capacity.
  5. Have a positive attitude. Attitude is everything, and a poor attitude toward drivers will only result in poor reports to the carrier. Driver feedback is a bit part of determining shipper of choice status.

What Does It All Mean?

Higher driver turnover in 2019 will be inevitable. With less than two months remaining in 2018, the best thing carriers and shippers can do today is to work on reducing the burden and stress on drivers. Drivers are living, breathing people, and they deserve to be treated fairly by both their employers and shippers.

Follow the tips in this article, and start working to build better relationships in every interaction you have with truckers.

Related Article: Why Less-Than-Truckload Is Moving to Dimensional Based Pricing

Why Less-Than-Truckload Is Moving to Dimensional Based Pricing

Related White Papers

Download the White Paper

The State of & Pricing Outlook of the Less than Truckload Shipping Market New!
This is a must-read for shippers who are either LTL shipping pros, new LTL shippers who are needing education, or those moving more freight to the LTL mode as Full Truckload feels the capacity crunch squeeze. Download Now!


Download the White Paper

8 Big Factors to Consider for Efficient Less-than-Truckload Shipping New!
In this all-new e-book, we discuss the 8 core areas that Less-than-Truckload shippers can focus on in order to have more efficient LTL shipping practices. Download Now!


Download the White Paper

Top Supply Chain Trends that Will Impact Supply Chain Management in 2018
In this white paper, we discuss the non-technological trends supply chain managers must know and then will hone in on the technologies that will impact the supply chain in 2018. Download Now!


More Resources  from Cerasis

Article Topics
Best Practices   Transportation   Transportation Management   Driver Shortage   Less-than-Truckload   LTL   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Transportation News
Transportation & Supply Chain Predictions for 2019
For 2019, we believe the U.S. transportation industry and supply chain professionals will place more emphasis on digitization within the supply chain to help them address future complex challenges.

Developing a Less-than-Truckload & Ecommerce Focused Shipping Strategy
Companies must embrace the combined nature of omnichannel to realize its benefits, and the same is true of combined less-than-truckload and e-commerce shipping strategies.

Utilizing Omni-channel Fulfillment Distribution Networks to Build Customer Relationships
How a multi-node network, paired with powerful technology, can help tackle the biggest transportation, e-commerce, and omni-channel challenges that shippers are facing in the current market.

Intermodal Growth Starting to Pay Off with Inland Ports’ Development
According to new JLL research, a looming capacity shortage in the trucking industry, coupled with rail’s high efficiency, is causing logistics suppliers and transportation providers to turn their focus…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles