Monthly Archives: October 2015

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New ATA Report Shows Growing Shortage of Qualified Truck Drivers

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Analysis Shows Driver Shortage of 48,000 Now, Possibly 175,000 by 2024 

According to a new analysis by the American Trucking Associations, the shortage of truck drivers has grown to nearly 48,000 and could expand further due to industry growth and a retiring workforce.  “The ability to find enough qualified drivers is one of our industry’s biggest challenges,” said ATA President and CEO Bill Graves. “This latest report plainly lays out the problem – as well as some possible solutions – to the driver shortage.”

The report, ATA’s fourth major analysis since 2005, shows that by the end of 2015, the driver shortage will reach nearly 48,000. If current trends hold, the shortage may balloon to almost 175,000 by 2024.

“An important thing we learned in this analysis is that this isn’t strictly a numbers problem, it is a quality problem too,” ATA Chief Economist Bob Costello said. “Fleets consistently report receiving applications for open positions, but that many of those candidates do not meet the criteria to be hired. According our research, 88% of carriers said most applicants are not qualified.”

Other key findings of the report:

  • Over the next decade, trucking will need to hire 890,000 new drivers, or an average of 89,000 per year.
  • Roughly half, 45%, of demand for drivers comes from the need to replace retiring drivers; industry growth is the second leading driver of new hiring, accounting for 33% of the need.
  • ATA’s analysis does not factor in the impact of federal regulations – like electronic logging – on the shortage.

“Our work shows the great and growing need for drivers,” Costello said, “but we also highlight several solutions including increasing driver pay, getting drivers more time at home, as well as improving the image of the driver and their treatment by all companies in the supply chain. Make no mistake, the driver shortage is a challenge, but it is not an insurmountable one.”


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Trucking industry lost 4,000 jobs in September

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September marked the eighth consecutive month of job gains for the transportation sector. However, after a slight job increase in August, the truck transportation subsector lost jobs in September.
The transportation sector gained more than 3,000 jobs in September, according to the U.S. Department of Labor’s Bureau of Labor Statistics, the lowest monthly growth since January when the industry lost nearly 9,000 jobs.

The truck transportation subsector experienced a loss of 4,000 jobs after the industry gained 700 in August and nearly 3,000 in July. September is only the second month of 2015 in which the trucking industry lost jobs. Nearly 7,000 truck transportation jobs were lost in March.

Trucks experienced the largest job loss with transit and ground passenger transportation losing the second most with more than 1,000 jobs eliminated from the workforce. Couriers and messengers received the largest injection of jobs with an increase of 3,000.

Average hourly earnings for the transportation and warehousing sector were $22.86 for September, an 8-cent increase from August. Hourly earnings for production and nonsupervisory employees decreased 4 cents to $20.64. Average hourly earnings for private, nonfarm payrolls across all industries were $25.09, unchanged from the previous month. Compared with a year ago, average earnings have gone up by 2.2 percent.

According to the report, the unemployment rate for transportation and material moving occupations is down to 5.8 percent from 6.8 percent last September. The overall unemployment rate for the country stayed stagnant at 5.1 percent. According to The Washington Post, the unemployment rate for August and September is the lowest since April 2008 and is considered to be “full employment.” The number of long-term unemployed saw little change compared with the previous month at 2.1 million. However, that number has decreased by 847,000 in the past 12 months.

 


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FMCSA grants another exemption from 30-minute rest break reg

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Editor’s note: This article has been modified to clarify that the rest breaks are still required for R&R drivers, they will just be able to count time not driving, but attending the load, as the 30-minute rest break.

Yet another motor carrier has petitioned for and successfully received an exemption from the mandatory 30-minute rest break requirement.

The Federal Motor Carrier Safety Administration granted a request from R&R Transportation Group to be exempt from provisions in the mandatory 30-minute rest break according to an Oct. 2 Federal Register notice, altering how the drivers will take and log the breaks.

The company filed an application for exemption from the rest break for drivers of its three motor carriers that haul security sensitive loads requiring constant attendance. The motor carriers – R&R Trucking, TNI USA and NEI Transport – haul a wide variety of security-sensitive materials ranging from weapons and ammunition to night-vision goggles, pharmaceuticals and radioactive material.

These types of loads require under the regs that the drivers keep the truck and cargo under constant observation to prevent theft or an “adverse security incident.” Drivers are then put in a Catch-22 of violating a regulation: Keep the load under observation while on-duty or take a mandatory 30-minute rest break.

The exemption allows drivers under certain loads requiring constant attendance to take their 30-minute rest break while attending the load.

FMCSA has previously granted temporary, generally two-year, exemptions from the 30-minute rest breaks for motor carriers with drivers in similar situations. In fact, both the Department of Defense and Department of Energy have secured exemptions from the rest break for drivers hauling various security-sensitive loads for the agencies.

R&R’s exemption is similar to one granted to concrete haulers who are allowed to take their 30-minute rest break while waiting in que to unload concrete.

The FMCSA followed suit in the Oct. 2 Federal Register notice granting drivers of the R&R Transportation Group the same exemption. Drivers who have loads with mandatory constant observation requirements will be able to forgo the mandatory rest break. R&R drivers who have regular interstate freight that does not require constant observation will still be required to take the 30-minute rest break.

The exemption is good for two years.


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Van Freight Rates Fall 2¢, but Demand Is Up in the Northwest

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Load-to-truck ratios were high in New Mexico, as shown below by the dark red area in the Hot States Map, but the number of loads there is still relatively low. Daily maps, along with detailed information on demand, capacity and rates for individual markets and lanes, can be found in DAT Power Load Boards and in DAT RateView™.

Last week was the first full work week following Labor Day. With the extra workday, van load posts rose 10.5% compared to the previous week, while truck posts were up 31%. This actually indicates a decline in demand. When there are five workdays instead of four, a 20-25% increase in all load board activity would be expected. As a result, the national average load-to-truck ratio fell 15.5%, from 2.0 to 1.6 loads per truck on DAT Load Boards.

Spot market rates for vans fell 2¢ to a national average of $1.75 per mile, as demand dipped after Labor Day. Rates are still higher than they were in August, but most markets slipped lower last week. California was a bright spot, with outbound rates in Stockton seeing an uptick and Los Angeles prices holding steady. Rates are derived from DAT RateView and are based on actual rate agreements between freight brokers and carriers. Reference rates include fuel surcharges but not accessorial or other fees. This map of van rates in key regional markets can also be found on DAT Trendlines.

DAT TriHaul of the Week

Ordinarily, you  might turn down a load from Chicago to Denver, because outbound rates in Denver are never good. Today, you might take it – but create a TriHaul route to get you out of Denver without losing your shirt.

Rapid City, SD is hot right now for vans, with a load-to-truck ratio of 6.7. If you can fit this into your schedule, find a load from Denver to Rapid City and another one from Rapid City back to Chicago. You’ll add more than $1,000 to your total roundtrip revenue, with an increase of 30¢/mile to an average of $1.84 for all loaded miles.


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Roadcheck 2015 results: Lowest rates of out-of-service violations since 1991

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The results are in, and the 2015 edition of International Roadcheck resulted in the lowest rates of out-of-service violations since the event started keeping records in 1991, according to the international association of commercial vehicle enforcement agencies.

The Commercial Vehicle Safety Alliance, which sponsors the three-day commercial vehicle enforcement operation in the U.S. and Canada, announced the results via press release on Tuesday, Sept. 29.

From June 2 to June 4, commercial motor vehicle inspectors across North America completed 69,472 truck and bus inspections. Of the 69,472 total inspections during this year’s Roadcheck, 44,989 were North American Standard Level I Inspections, which is the most thorough roadside inspection. A CVSA spokesman confirmed for Land Line that no Mexican authorities participated in this year’s enforcement campaign.

Of Level I Inspections, inspectors found 1,623 or 3.6 percent of drivers and 9,732 or 21.6 percent of vehicles with out-of-service (OOS) violations, historically the lowest rates for which CVSA has data, back to 1991, according to the release. Of all inspections, 777 seat belt violations were issued.

Brake adjustment and brake systems were the top OOS violations for vehicles in 2015, accounting for 43 percent of all vehicle violations. Hours-of-service violations were the top violation for drivers, accounting for 46 percent of all violations.

Each year, International Roadcheck places special emphasis on a category of violations. The special emphasis for 2015 was cargo securement. During the event, inspectors issued 2,439 violations for load securement. The leading load securement violations, by number of violations issued, were:

Failure to prevent shifting/loss of load;
Failure to secure truck equipment (tarps, dunnage, doors, tailgates, spare tires);
Damaged tie downs (typically unacceptable wear on chain or cuts and tears on web straps);
Insufficient tie downs; and
Loose tie downs. Load securement enforcement is a normal part of Level I Inspections, but securing cargo and equipment are vital to safe operations.
“CVSA’s International Roadcheck is the largest targeted enforcement program on commercial motor vehicles in the world, with nearly 17 trucks or buses inspected, on average, every minute, over three days,” said Collin B. Mooney, CVSA acting executive director. “However, we must remember that the work done over that 72-hour period represents only a fraction of what’s accomplished every day by approximately 13,000 CVSA-certified local, state, provincial, territorial and federal inspectors at hundreds of inspection locations across North America.”
Since its inception in 1988, International Roadcheck has performed more than 1.4 million inspections. Learn more about International Roadcheck here.

Facts at a glance

2015 driver inspection results (per CVSA)
All inspections that included drivers: 95.2 percent of drivers had no OOS violations, and 4.8 percent were placed out of service (4.8 percent were out of service in 2014).
Level I inspections: 96.4 percent of drivers had no OOS violations, and 3.6 percent were placed out of service (4.0 percent were out of service in 2014).
HazMat: 98.5 percent of drivers carrying HM had no OOS violations, and 1.5 percent were placed out of service (3 percent were out of service in 2014).
Passenger carrying vehicles: 98.1 percent of drivers had no OOS violations, and 1.9 percent were placed out of service (3.9 percent were placed out of service in 2014).

Vehicle results for 2015 were as follows:
All inspections that included vehicles: 82.5 percent of vehicles had no OOS violations, and 17.5 percent were placed out of service (18.7 percent were out of service in 2014).
Level I inspections: 78.4 percent of vehicles had no OOS violations, and 21.6 percent were placed out of service (23 percent were out of service in 2014).
HazMat inspections: 88.5 percent of vehicles carrying HM had no OOS violations, and 11.5 percent were placed out of service (16 percent were out of service in 2014).
Passenger-carrying vehicles: 92.4 percent of vehicles had no OOS violations, and 7.6 percent were placed out of service (9.3 percent were out of service in 2014).