Why truck capacity doesn’t appear to be getting better anytime soon
2018 is unlike any other capacity crunch we have seen in the 2000’s. This is a one-of-a-kind not happened before event, because what we are dealing with now are systematic issues, rather than cyclical issues. Yes, the US economy is strong, but other factors are also playing a role.
· Aging Driver Pool
· New Regulations – eg. ELD
· Expensive and Rigid Insurance Requirements
· Visibility Expectations – basically on-call all the time
· Relatively Low Driver Pay (per google $40,000 year for a driver vs $62,677 for an equipment operator)
How many drayage and OTR drivers have you seen in their 20s? Even if you were to get an applicant, would you be able to get them on your insurance? Many insurers require 3 years experience and it’s very difficult to get that experience.
What are we doing at Port X Logistics?
We acquired more equipment! Equipment that will allow us to handle additional cargo and handle it with more efficiency.
· Port X Logistics now has more quality trucks for its drivers
· We are paying our drivers significantly higher than the industry average
· We have added more of our own chassis, so drivers can cut down on time at the port
· Trailer pool added to increase productivity and eliminate per diem for our Supply Chain clients
· Our drivers will get to use a state of the art technology that will make them more efficient
The industry is behind the 8 ball, so efficiency is a must. We have a pledge at Port X Logistics to bring sexy back to trucking! We must treat drivers like gold and provide them with quality tools and solutions. The days of looking down upon truck drivers and truck driving jobs are over. They are and will continue to be a staple for this economy.