Monday, August 9, 2010

How Driver Recruiting Will Affect Shippers

Should CEO’s be concerned how driver recruiting will affect shippers? The short answer…. Yes.

Drivers are leaving their current positions to “go where the money is”. Many carriers, feeling the driver shortage crunch, are fighting hard for those seasoned drivers. According to Transport Topics, carriers are being forced to raise their mileage pay and many are paying sign on bonuses to attract top drivers. Six out of seven carriers are paying referral bonuses up to $1,500.

According to Jeff Davis of Jet Express, “There are so many motor carriers who are just holding their own and living from month to month.” He feels that the new CSA 2010 guidelines can be the “straw that breaks the camels back”, as the new safety system will disqualify drivers for violations that previously didn’t count against them.

Any prudent person can see where this is going. Carriers who are still fighting to regain losses from the recession face a tough decision. Either they don’t pay their drivers additional wages, signing bonuses, referral fees, etc. and keep their rates the same for their customers OR they pay higher driver wages to keep their fleets going and charge higher rates to their customers.

It’s a tough choice, but shippers need to be aware of what is going on in the transportation industry. Some industries are still slow while others have increased tremendously. The real problem is not if the economy expands, the real problem is keeping enough drivers in trucks to transport goods across our country.
CEO’s need to watch this closely, as transportation is normally one of the largest line item expenses on their income statements. Their transportation managers may be faced with a tough job ahead of them if no trucks will come to their doors. Without trucks delivering their goods to THEIR customers, the CEO’s may face a serious shortage of their own – satisfied customers.

The driver shortage is very real. Companies are not only paying recruiting referrals, sign on bonuses, and increasing pay, but they are also marketing like never before.

Click here to see the Schilli website for Flatbed Jobs.

Below is a video that is also being distributed throughout the internet for potential drivers to review.