Truckers' Lagging Earning Power

[ATeam]

The top 50 carriers are reporting healthy earnings but driver pay lags.

See: Journal of Commerce article

Excerpt: "Here’s the kicker. That average trucker pay is lower than the overall average U.S. wage, and the gap between them is getting wider. Since 2001, average driver pay has increased 18.2 percent, but the overall average wage is up 33 percent."

This is serious. Take note. Expedite carriers are not in the Top 50 but the sectors correlate. The money that used to be in expediting in days gone by is not here today.

 

[chefdennis]

I didn't see a "link" to the list, but I'd be willing to bet that there is 1 common thread for most of those driving for most of thoses companies....anyone care to say what that "common thread" is???

 

[davekc]

The good news is if (and thats a big if) driver supply continues to drop, something has to give at some point. When carrier revenue starts to dip because they can't cover freight, that is probably when you will see them start to do something.

 

[ATeam]

How much freight is booked and priced via the internet compared to ten years ago?

What new players are on the scene that would not be here if not for the internet?

How does the transportation transparency that the internet makes possible and continues to increase affect an individual trucker's ability to bid a good price (or get one if you lease to a carrier with centralized dispatch and the pricing goes on behind the scenes)?

Even if a true driver shortage developed, what real difference would it make when shippers can see 1,000 trucks online now when they could see none in years past?

Years ago I was a stockbroker and financial planner. In those days brokers were commonly paid by commission; generally 8.5% of the amount invested when a client bought or sold shares.

Money Magazine came on the scene publishing more information about the markets and funds. No-load mutual funds increased in number and popularity, putting downward pressure on commissions. Then along came the internet, destroying the exclusive access brokers had to market information, and the commission-based compensation model along with it.

The comparison is not direct but note what was lost by brokers and gained by consumers when the internet made stock market information easily available to everyone.

Carriers used to be the only ones who knew where their trucks were. With that information becoming increasingly available to everyone, trucks are becoming nameless dots on a map and a shipper's job is to put freight on the cheapest one.

 

[zorry]

Well said Phil

 

[davekc]

That's not exactly a encouraging post there Phil, but it actually is a reality of expediting/trucking today.

 

[cheri1122]

I didn't see a "link" to the list, but I'd be willing to bet that there is 1 common thread for most of those driving for most of thoses companies....anyone care to say what that "common thread" is???

That they want to earn a living, pay their bills, support themselves & their families, maybe even save a little for 'rainy days' & longterm goals?

 

[ATeam]

I didn't see a "link" to the list, but I'd be willing to bet that there is 1 common thread for most of those driving for most of thoses companies....anyone care to say what that "common thread" is???

Drivers for the Top 50 carriers have much in common. What is the point you wish to make?

 

[Moot]

Since 2001, average driver pay has increased 18.2 percent, but the overall average wage is up 33 percent.

They're all doing better than me! Since 2001 my rate per mile has decreased more than 25%. Lucky for me the cost of owning and operating a van has also decreased proportionally. It has, hasn't it?

 

[turritrans]

I would think there are several factors for this. Electronic logs to some point reduced driver productivity. Also fleet size, seems trucks tend to sit a little more along with reduced load opportubities. Cost of insurance has doubled.. Quadrupled for fuel and the rates have been the same for 15 years. Carriers are making more profits, I also know they have invested more and more in sales. Are carriers giving drivers less them before? You guys would know better then I would. Overall very interesting study!

 

[layoutshooter]

I don't know. So far this is the BEST year we have ever had. We are WAY ahead of this point last year, both gross and net. Rates are up, even after accounting for the rise in FSC. I don't know if this will continue but we are enjoying it for now!

 

[chefdennis]

Originally Posted by chefdennis

I didn't see a "link" to the list, but I'd be willing to bet that for most of those driving for most of thoses companies....anyone care to say what that "common thread" is???there is 1 common thread

Drivers for the Top 50 carriers have much in common. What is the point you wish to make?

1st since when does having "1" thing in common constitute "MUCH"?? And also note i said most, not all...my point is, chances are the common thread is they are "employees"...they are letting the company and probably the union control how much they make. If be willing to bet that if you checked the income of O/O's verses the employed drives the income gap would surprise you in most cases....Look at the post above by Layoutshooter....

 

[NightDriver]

The top 50 carriers are reporting healthy earnings but driver pay lags.

See: Journal of Commerce article

Excerpt: "Here’s the kicker. That average trucker pay is lower than the overall average U.S. wage, and the gap between them is getting wider. Since 2001, average driver pay has increased 18.2 percent, but the overall average wage is up 33 percent."

This is serious. Take note. Expedite carriers are not in the Top 50 but the sectors correlate. The money that used to be in expediting in days gone by is not here today.

Gosh! Golly! Gee whiz! What should we do? Unionize? Nooo, that sunk Detroit. Hmmm.Maybe we could ... work harder? work smarter? adapt? retire? get a different job? write a book??

 

[BigCat]

I would think there are several factors for this. Electronic logs to some point reduced driver productivity. Also fleet size, seems trucks tend to sit a little more along with reduced load opportubities. Cost of insurance has doubled.. Quadrupled for fuel and the rates have been the same for 15 years. Carriers are making more profits, I also know they have invested more and more in sales. Are carriers giving drivers less them before? You guys would know better then I would. Overall very interesting study!

E-logs do not decrease productivity. It makes us run legal. I guess you can make more running 3 log books but there were also more risks too.

 

[ATeam]

Hmmm.Maybe we could ... work harder? work smarter? adapt? retire? get a different job? write a book??

All of the above.

 

[turritrans]

E-logs do not decrease productivity. It makes us run legal. I guess you can make more running 3 log books but there were also more risks too.

Carriers will split off loads all the time if they think there is a chance of an HOS violation. Paper logs you can get to the destination and shut down in the parking lot and get delivered if your running tight on hours. Single drivers at the larger carriers are not as productive then in the past from what i have seen when i leased my trucks on years ago. My single drivers could never seem to get consistent miles because the loads were always getting split off when we had the hours in most cases to make the delivery. Nothing to do with running illegal.

Can any single drivers chime in that runs with E logs, do you feel this has cut down productivity or no affect at all? I see a lot of fleet owners running teams because of this.

Just my observations, of course I welcome input from current ops... Maybe things have changed a bit?

 

[BigCat]

Im on e-logs myself and yes they have had me swap loads when solo but any respectable company running paper did the same thing when it was tight. Even on paper if you run out at the consignee and you are stopped leaving going to truckstop you have to show drive time and your out of hours it is a violation just the same as with e-logs. Log it like it is driven or dot will find violations. They can/will calculate and find out if you were even doing 5 mph based on your logs.

 

[moose]

I wouldn't worry mach about large carriers paying their drivers.
after all they are in business to pay their drivers as little as they think they can get away with.
they just got better in that over time.

 

[cableguymn]

I wouldn't worry mach about large carriers paying their drivers.
after all they are in business to pay their drivers as little as they think they can get away with.
they just got better in that over time.

Yup. the problem is not with the pay offered. it's with the person accepting it.

 

[chefdennis]

Yup. the problem is not with the pay offered. it's with the person accepting it.

Yeap, the "EMPLOYEE" mentality......