Higher freight rates and available loads cannot improve a carrier's bottom line when trucks remain unseated, so driver recruitment and retention were the central profitability challenge in 2018.
“Drivers Needed” signs reflected a simple problem: trucks were available and spot rates were rising, but carriers lacked reliable drivers.
The shortage had already reduced miles and increased unseated equipment in 2017. Carriers responded with higher pay and larger sign-on bonuses, which further pressured profit and operating ratios.
Why the Driver Population Was Shrinking
Aging Driver Pool
The average driver was between 53 and 56 years old, and more drivers were leaving the industry than entering it.
Lifestyle Shift
Long-haul drivers were often home only a few nights each week. Younger workers increasingly wanted jobs that allowed more frequent home time.
Driver Pay
Average annual pay was approximately $45,000 to $50,000. Competing industries such as construction offered similar wages with less travel and more nights at home.
How Some Carriers Differentiated Themselves
Reliable Equipment
Drivers prefer dependable trucks that do not strand them or reduce mileage-based earnings through downtime.
Apps and Social Media
Carriers used apps and social platforms to communicate with drivers and recognize anniversaries, achievements, and contributions. These intangible benefits helped drivers feel valued and supported loyalty.
Dedicated Short Hauls
Some carriers changed their operating model to include more dedicated and shorter-haul freight, allowing drivers to return home more consistently.
Retention Bonuses
Retention bonuses helped prevent a year-over-year decline in driver wages and reduced the incentive to search for another employer.
Converting Rate Increases Into Profit
The first quarter of 2018 brought strong spot-rate gains, and some carriers secured shipper increases as high as 10%.
Those rates would produce healthier profit only if carriers minimized unseated trucks. The loads and price increases were available; the operating challenge was recruiting and retaining enough drivers to haul them.