ATA economist: Freight volumes are growing, but driver shortage looms

Oct. 9, 2014
American Trucking Associations chief economist Bob Costello told the annual ATA Management Conference & Exhibition that freight volumes in the trucking industry continue to grow, but the looming driver shortage could hold back industry growth.

American Trucking Associations chief cconomist Bob Costello told the annual ATA Management Conference & Exhibition that freight volumes in the trucking industry continue to grow, but the looming driver shortage could hold back industry growth.

“Freight volumes are growing nicely on a year-over-year basis for most trucking sectors as economic growth remains solid,” Costello said here during a panel discussion titled The Economy and Its Impact on Trucking.

Costello was joined on the panel by economists John Felmy of the American Petroleum Institute, Jack Kleinhenz of the National Retail Federation and Chad Moutray of the National Association of Manufacturers.

“Industry revenue and average revenue per mile are increasing nicely as capacity remains constrained,” Costello said. “However, the industry is having a difficult time adding trucks due to the driver shortage.”

Costello said the shortage was “as bad as ever and is expected to get worse in the near term,” as freight volumes continue to grow.

As evidence, Costello reported that turnover – often a proxy for tracking the driver shortage – rose 11 percentage points to an annualized rate of 103 percent in the second quarter. The increase set the rate at its highest point since the third quarter of 2012.

Turnover at small truckload fleets – fleets with less than $30 million revenue – surged 16 points to 94 percent, the highest level since the third quarter of 2012.

“These turnover rates show that the shortage is acute,” Costello said, “and if the freight economy continues to grow, it will worsen very quickly.”

Sponsored Recommendations

How to Properly Lubricate your Air Tools

Learn how to properly lubricate your AIRCAT air tools to keep them running at peak performance. Discover essential daily maintenance and storage techniques, along with the right...

Save Time with Standard's Kits & Multipacks

Stock up on essential repair kits! Discover how Standard's multipacks simplify repairs and reduce downtime.

Fuel Injection Training – Pro Tips for Techs

Choosing the right fuel injector matters. Learn best practices for selection and related component recommendations.

ABS Sensor Insights – Get the Right Fit Every Time

ABS sensors are critical to vehicle safety. Learn how they interact with electronic systems and how to choose the best replacement.

Voice Your Opinion!

To join the conversation, and become an exclusive member of Vehicle Service Pros, create an account today!