Most people are aware of a truck driver shortage back in 2020, but is it still happening? The driver shortage used to be in the news frequently, but it hasn’t been discussed much lately.
However, lack of discussion doesn’t mean the shortage is over. In fact, there’s plenty going on in the trucking industry that isn’t being discussed in the news.
There is still a truck driver shortage in the U.S.
In short, there’s still a truck driver shortage in the United States. Although, a driver shortage is just one issue. There’s also a shortage of trucks, but companies are finding ways around this.
For example, many trucking businesses are importing used semi-trucks from Canada through brokers like Maxim Truck & Trailer to not only find what they’re looking for, but to save money as well. Due to the exchange rate, the average used truck costs 30% less when imported to the U.S. from Canada.
Regardless of the driver shortage, trucking companies need to buy trucks, whether it’s to add to their fleet or replace a truck that isn’t worth keeping. Companies that would have taken out a loan for new trucks are now looking for used trucks to avoid going further into debt when their expenses are increasing.
Why is there a shortage? How did it begin?
While not everyone agrees with how the driver shortage began, most people can agree on one thing: it’s grueling to be a truck driver and it’s not usually worth the pay. There are around 300,000 truck drivers who leave the profession each year, but nowhere near that many are entering the profession.
Although the shortage was starting to show years ago, people didn’t really notice until around 2018. At that time, many people were being offered $80,000 per year as an incentive to get their CDL and start driving, but that wasn’t adequate compensation for the work.
Being a truck driver is grueling. Drivers spend weeks on the road away from their families and drive for long periods of time. When they need to sleep, they have to sleep in their truck in the small living quarters in the back of the cab. It’s kind of like being in a small RV.
After factoring in all the time spent working, many truck drivers end up earning $15-$18 per hour. Many choose to stay in the profession because it’s easy money without a college degree, but for others, it’s too grueling.
There are also tough licensing and testing processes that prevent a lot of people from getting their CDL so they can drive semi-trucks. For instance, as of February 2022, there’s a new mandate requiring CDL holders to complete training from a registered provider prior to taking their hands-on test. Prior to this regulation, people had more freedom in choosing how to develop the skills required to pass the test.
How the shortage increases expenses for trucking companies
With a driver shortage, trucking companies can’t deliver as many loads, which decreases their profits. With lower profits, each repair and maintenance expense hits them harder.
The shortage also forces trucking companies to offer higher pay to existing and new drivers in order to keep them from working for a competitor.
In addition, some trucking companies are forced to increase loads, and Louisiana has actually increased the legal load limit statewide. This, of course, will lead to more gas consumption – another rising expense since diesel is now around $5.50 per gallon.
How the truck driver shortage affects the economy
During the first couple years of the coronavirus pandemic, the truck driver shortage really affected the economy. The supply chain crisis highlighted the importance of truck drivers with their absence, and the recovery is still ongoing.
Although the issues with driver shortages are not just pandemic-related, the economy is still suffering with the shortage. Although, it’s not as apparent. Most of the time, the impact is higher prices, and the consumer never sees the issues that lead to those higher prices.
Will the driver shortage ever end?
The trucking industry has seen some major challenges in the last couple of years, and the driver shortage has been one of the most impactful. However, the driver shortage may not last long. There is a pilot program in place to allow 18-21-year-old drivers to drive between states and transport interstate goods within their state. This was previously forbidden. The Bipartisan Infrastructure Act makes this legal and is a great way to introduce a younger generation to the truck driving industry.
Although there’s no guarantee that things will change soon, many people in the industry are working hard on solutions. Hopefully, they’ll come up with a solution that will make truck driving appealing to new CDL holders and keep experienced drivers on the road.
