Industry Indicators: Feb 28 – Mar 6
A scarce pool of drivers shrinks, again.
This week, various reports demonstrated a persistent challenge in the trucking industry – the shortage of truck drivers. ACT Research released their monthly for-hire trucking index. A score of 50 indicates no change, above 50 shows an improving availability while below 50 demonstrates a deteriorating pool of available drivers.
In January of 2021, the index reached a record low of 25. Compared to December, the index dropped 3.1 points. Overall, the January figure means driver availability is the tightest since ACT began the index over 3 years ago.
Causes of this historic decline include Covid-19, the rise in unemployment benefits, and stricter compliance measures sought by the Federal Motor Carrier Safety Administration Drug and Alcohol Clearinghouse.
Right now, nearly 60,000 drivers are declared ineligible to drive because of one or more violations of the FMCSA. The graph below demonstrates a clear upward trend in prohibited status – blue bars. While a fraction of drivers has taken the proper steps to return, approximately 7,500 – the yellow trend line, most remain sidelined.
Source: FreightWaves - https://www.freightwaves.com/news/fmcsa%3A-more-drivers-returning-to-work-after-drug-violations
Notice, 2 of the 3 factors cited in the deterioration of the driver pool concern federal government regulations – elevated unemployment benefits and tougher drug and alcohol testing. In addition, Tim Denoyer, ACT Research’s vice president and senior analyst specifically referenced the impact of another round of federal stimulus money: “We heard at our seminar last week that even the promise of further stimulus money has adversely affected carriers’ recruiting efforts.”
It does not take a Road Scholar to solve this equation:
Increased federal vigilance of driver behavior plus a raging pandemic plus modest driver pay plus the prospects of improved unemployment checks and intermittent stimulus money equals less drivers.
It’s now time for the industry and government to recognize drivers and their crucial role in the supply chain. Increase their pay, benefits, and stature. Driver supply will then meet demand, just as it does for every other supply chain professional.