I just read a ditty written by Walter Weart of Transportation Intermediaries Association (TIA), an association that I recently joined.
I was alarmed to learn that the average 2011 turnover rate for long distance truck drivers, specifically in large fleets, is 81%. That means that over 8 in 10 professional long haul truck drivers have either thrown in the towel due to high costs of fuel, insurance, licensing and maintenance (which does not bode well with our national unemployment rate), or were lured away by greater compensation per mile offers from other carriers.
Guess what that means for the shipping community. That’s right . . . higher rates.
Our customers are aware that fuel is a line item surcharge and understand this because they put gas in their own cars. But to have to raise transportation rates to pay drivers more money to keep them is tougher to explain.
The bottom line? Everything that moves on trucks costs more. (What doesn’t move on trucks?)