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Sunday, May 28, 2023

Driver turn over rate up

 

The turnover rate at truckload carriers surged in the second quarter of the year, a sign that the market for drivers is quickly tightening, according to American Trucking Associations Chief Economist Bob Costello.

โ€œWe saw double digit gains in the annualized turnover rate for both small and large truckload fleets,โ€ Costello said. โ€œAfter a period of relatively low turnover, it appears the driver market is tightening again, which coupled with increased demand for freight movement, could rapidly exacerbate the driver shortage.โ€

According to ATAโ€™s quarterly report, the turnover rate at large truckload carriers jumped 16 percentage points to 90% โ€“ the highest it has been since the final quarter of 2015. The 16-point increase is the largest quarterly jump since the fourth quarter of 2010.

At smaller carriers, fleets with less than $30 million in annual revenue, the turnover rate swelled by 19 percentage points to 85%, the highest it has been since the first quarter of 2016.

The turnover picture at less-than-truckload fleets was more muddled, with over-the-road LTL turnover dipping one point to 9%, but the rate for local LTL drivers was 14%, up two percentage points from the previous quarter and the highest rate in three years.

โ€œWe predicted that last yearโ€™s period of relatively low and stable turnover could be short-lived if the freight economy recovered from 2016โ€™s freight recession,โ€ Costello said. โ€œIt appears those predictions were correct and we may be seeing the beginnings of a significant tightening of the driver market and acceleration of the driver shortage.โ€