The American Trucking Associations (ATA) estimates that there is a severe shortage of truck drivers in the United States, with a need for about 51,000 more drivers to meet demand.
At the same time, the Coalition of Supply Chain Management Professionals (CSCMP) has identified the driver shortage as the main factor contributing to rising logistics costs in the United States.
To take even more into account: the ATA predicts that this will worsen in the coming years.
For its part, the Advisory Committee on Supply Chain Competitiveness (ACSCC) has identified this problem as critical to the supply chain industry.
Truck Drivers
Motor carriers in the United States must comply with DOT safety and fitness regulations, including those related to controlled substances and alcohol, hours-of-service compliance, vehicle maintenance, hazardous materials compliance, driver fitness, unsafe driving, and minimum insurance requirements.
Also the weight and dimensions of equipment are subject to government regulations.
In addition, companies may face new or more restrictive regulations. These regulations could relate to emissions, driver hours of service, independent contractor eligibility, on-board operations reporting, air cargo security, and other matters affecting safety or operating methods.
Other agencies also regulate equipment, operations, and drivers. These include the Environmental Protection Agency (EPA), the Food and Drug Administration (FDA), the California Air Resources Board (CARB), and the Department of Homeland Security (DHS).
Finally, companies are subject to a variety of licensing and vehicle registration requirements in certain states and local jurisdictions where they operate.
In that context, according to XPO Logistics, increases in driver compensation and difficulties in attracting and retaining drivers could negatively affect their revenues and profitability.
Competition
XPO Logistics’ LTL services in North America and Europe and its full truckload services in Europe are primarily performed with employee drivers.