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TCP survey: Fewer unseated trucks, carriers eye $60k driver pay

Carriers are still struggling with unseated trucks, but the situation is improving, says the fourth-quarter 2011 Business Expectations Survey by Transport Capital Partners.

While 70 percent of the carriers reported having unseated trucks, the number reporting more than 10 percent unseated decreased from 8 percent to less than 1 percent since the August survey. The number reporting unseated trucks in the 6-10 percent category rose from 10 percent to 18 percent.

“Carriers are aggressively recruiting and are opening more training slots, while the lack of extension of unemployment benefits is potentially encouraging people to seek jobs and training,” said Richard Mikes, TCP partner and study leader.

A larger number of small carriers (under $25 million in revenue) than large carriers reported zero unseated trucks (33 percent versus 28 percent).

“An anomaly still exists with the 8.5 percent unemployment rate which has particularly impacted the construction industry, a historical driver source, but drivers are still scarce,” said Lana Batts, TCP partner.

There also has been a significant shift in the wage expectation of what the annual wage must be to attract and retain drivers since May, according to the survey.

Sixty-five percent of the carriers now believe that wages must be more than $60,000, up from 49 percent in May.

“With a slightly improving GDP, it is clear that we have a capacity crunch on trucks and drivers,” said Mikes.

Mikes and Batts note that the stronger than expected end to 2011 brings ongoing challenges in 2012 to keep up and secure adequate rates to cover costs, with “balance” being the keyword for 2012: balancing trucks with loads, balancing rates with costs, balancing the scarce supply of drivers to man the trucks, and balancing the replacement of an aging fleet with adequate returns on newer more expensive trucks.

“Shippers and brokers are reporting that trucks have been harder to secure, and while rates have risen, carriers still tell us that ROI is not adequate nor keeping pace with costs,” Batts said.

TCP uses the quarterly survey along with partner conversations with carriers to provide a meaningful insight into future industry expectations.  Both Mikes and Batts have long term experience in the transportation industry.  Carriers desiring to participate in future surveys may apply here.

TCP provides advisory services related to transportation mergers and acquisitions, capital sourcing, operations and strategy with regional offices in Florida, Iowa, Colorado, Pennsylvania, Tennessee, and Virginia.

Kevin Jones of The Trucker staff can be reached for comment at [email protected] .

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