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 are required to adhere to DOT safety and fitness regulations. These include rules on controlled substances, alcohol testing, hours-of-service compliance, vehicle maintenance, hazardous materials handling, driver qualifications, unsafe driving, and minimum insurance coverage.
Additionally, government regulations determine the weight and dimensions of equipment used.
Companies in the industry may also face new or stricter regulations in the future. These could address emissions standards, driver hours-of-service limits, independent contractor eligibility, on-board operations reporting, air cargo security, and other safety or operational practices.
Various other agencies oversee equipment, operations, and drivers. Among these are 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.
XPO Logistics recognizes that the transportation industry has historically dealt with, and may continue to experience, significant competition for qualified drivers due to persistent driver shortages.
The company expects several factors to influence the availability of skilled drivers. These include shifts in workforce demographics, increased competition from other trucking companies and industries, and the cost and accessibility of driver training programs. Furthermore, industry regulations and overall labor market demand for drivers are likely to impact driver availability as well.