Large Truckload Company Driver Turnover Up
#1
Large Truckload Company Driver Turnover Up
FOR IMMEDIATE RELEASE
Large Truckload Company Driver Turnover Up 6 Percentage Points ALEXANDRIA, Va. – The driver turnover rate for large truckload and less-than-truckload carriers increased during the first quarter of 2007, marking their highest turnover rates since the end of 2005. ATA, which began collecting driver turnover statistics in 1995, reported that turnover for large truckload carriers was at a 127 percent annualized rate for the first three months of the year. This figure was 6 percentage points higher than during the last three months of 2006. The group ended the quarter with 1.8 percent fewer drivers than it had at the start. Large TL driver turnover posted a 116 percent annualized rate for the 2006 first quarter. Turnover peaked at 136 percent for large TL carriers during the 2005 fourth quarter. “The softer freight demand contributed to the increase in large TL driver turnover,” said ATA Chief Economist Bob Costello. “Nearly 80 percent of the large carriers in our sample saw their number of employee drivers fall during the period. In some cases, the drivers that left were not replaced, due to soft and choppy freight levels.” Small TL carriers saw the average annualized turnover rate drop to 102 percent from 112 percent during the first three months of the year. The small carrier turnover rate has been at least 100 percent for six consecutive quarters. Small carriers added 3.5 percent to their driver ranks, marking the second consecutive quarterly gain in the number of drivers. The LTL market, by comparison, reduced overall employment during the 2007 first quarter by 1.6 percent. The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its 50 affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.
#2
Re: Large Truckload Company Driver Turnover Up
Originally Posted by GMAN
FOR IMMEDIATE RELEASE
Large Truckload Company Driver Turnover Up 6 Percentage Points ALEXANDRIA, Va. – The driver turnover rate for large truckload and less-than-truckload carriers increased during the first quarter of 2007, marking their highest turnover rates since the end of 2005. ATA, which began collecting driver turnover statistics in 1995, reported that turnover for large truckload carriers was at a 127 percent annualized rate for the first three months of the year. This figure was 6 percentage points higher than during the last three months of 2006. The group ended the quarter with 1.8 percent fewer drivers than it had at the start. Large TL driver turnover posted a 116 percent annualized rate for the 2006 first quarter. Turnover peaked at 136 percent for large TL carriers during the 2005 fourth quarter. “The softer freight demand contributed to the increase in large TL driver turnover,” said ATA Chief Economist Bob Costello. “Nearly 80 percent of the large carriers in our sample saw their number of employee drivers fall during the period. In some cases, the drivers that left were not replaced, due to soft and choppy freight levels.” Small TL carriers saw the average annualized turnover rate drop to 102 percent from 112 percent during the first three months of the year. The small carrier turnover rate has been at least 100 percent for six consecutive quarters. Small carriers added 3.5 percent to their driver ranks, marking the second consecutive quarterly gain in the number of drivers. The LTL market, by comparison, reduced overall employment during the 2007 first quarter by 1.6 percent. The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its 50 affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States. Ok, I read this, just what exactly does it mean for the common driver? :wink:
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#3
Senior Board Member
Join Date: Jan 2006
Location: Central Maine
Posts: 1,192
It basically means three things
turnover for large truckload carriers was at a 127 percent annualized rate for the first three months of the year
The big question there is how many of their replacements are coming in as experienced drivers. I suspect that at least half of that number are drivers who simply switch companies, not leave the industry entirely.
Small carriers added 3.5 percent to their driver ranks, marking the second consecutive quarterly gain in the number of drivers.
The LTL market, by comparison, reduced overall employment during the 2007 first quarter by 1.6 percent.
Now as to what that means to the common driver: The big OTR companies are looking for drivers (nothing new there) but so are smaller and possibly better managed companies. If you want an LTL job now isn't the time to start looking for that.
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#4
What I see it as meaning is that the major and minor carriers, who are members of the ATA....have failed to learn how to correct their internal problems and correct the systemic errors in their sector of the industry in such a manner as to prevent driver turnover. In other words, they have basically proven once again that they either don't give a "flip", or are unwilling to make the decisions necessary to correct the existing problems, even though every time a driver quits and they have to hire a replacement, it costs them rough $7000.00.
Speaking of "management stupidity"???? :shock: :?
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#5
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Join Date: Jan 2005
Location: East Central IL between the corn and the beans
Posts: 4,977
What is pathetically funny is that some major companies have spent hundreds of thousands of dollars trying to correct the driver turnover problem in the industry by hiring these focus groups/companies to come in and exam the problems and recommend changes.
Where it is pathetic is that they could have saved this money, and gotten better results, if they simply had asked drivers what needs to be done and actually listen to the answers. It is my guess that if the $7000 it takes to hire a driver was spent on driver retention issues that the company would see at least an additional $3000 plus per year above that in productivity per driver, if not a lot more.
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#6
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Originally Posted by Rawlco
Shippers are realizing that they can get a better rate with truckload distribution, perhaps with a couple of stops. LTL carriers have overpriced themselves in the current market and I bet that will correct itself shortly.
The only time an LTL and TL carrier compete in spot markets is in long-haul lanes (3-5 day transit times). In 1-2-3 short-haul lanes there is no competition and there never will be. In such cases, LTL has more in common with parcel carriers than they do with TL.
#7
Member
Join Date: Feb 2007
Location: Tool TX
Posts: 115
Originally Posted by Uturn2001
What is pathetically funny is that some major companies have spent hundreds of thousands of dollars trying to correct the driver turnover problem in the industry by hiring these focus groups/companies to come in and exam the problems and recommend changes.
Where it is pathetic is that they could have saved this money, and gotten better results, if they simply had asked drivers what needs to be done and actually listen to the answers. It is my guess that if the $7000 it takes to hire a driver was spent on driver retention issues that the company would see at least an additional $3000 plus per year above that in productivity per driver, if not a lot more.
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CJ
#8
Originally Posted by Rawlco
Shippers are realizing that they can get a better rate with truckload distribution, perhaps with a couple of stops. LTL carriers have overpriced themselves in the current market and I bet that will correct itself shortly.
Now as to what that means to the common driver: The big OTR companies are looking for drivers (nothing new there) but so are smaller and possibly better managed companies. If you want an LTL job now isn't the time to start looking for that.
#9
Member
Join Date: Feb 2007
Location: Tool TX
Posts: 115
Originally Posted by ben45750
Originally Posted by Rawlco
Shippers are realizing that they can get a better rate with truckload distribution, perhaps with a couple of stops. LTL carriers have overpriced themselves in the current market and I bet that will correct itself shortly.
Now as to what that means to the common driver: The big OTR companies are looking for drivers (nothing new there) but so are smaller and possibly better managed companies. If you want an LTL job now isn't the time to start looking for that.
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