The trucking industry saw turnover drop by more than ten percent at the end of a very robust peak season. Even if trends for 2019 have yet to be established, this is one number everyone is happy to see declining.
Half a Year of Rising Trucker Turnover
At the end of 20217, trucker turnover was sitting at 74 percent. While not perfect, the rate was still manageable. Over the course of 2018, the trucker turnover rate shot up to 98 percent, according to the American Trucking Associations. The spike led to trucking companies spending more on recruiting efforts at high schools and community colleges, and even making pushes to expand the terms for drivers in the 18-21-year-old range. Between the demand from shippers, the number of career drivers hitting retirement, and the existing shortage of qualified drivers going back years, hitting a 98 percent turnover rate placed a lot of stress on the very industry on which our entire economy depends.
Reasons for the Decline
A number of factors contributed to the decrease in trucker turnover in the latter half of 2018. First, many trucking companies were offering increased wages and sign-on bonuses to retain drivers. Second, communication between shippers and carriers improved, ensuring a large number of trucks were being used to their optimal capacity. Third, the threat of impending tariffs pushed peak loads ahead of schedule, so demands were calming down by the end of the year. The trucking industry also had major obstacles to overcome. The ELD mandate and restricted hours of service placed a lot of pressure on carriers and especially drivers to get shipments to their destinations. The demand for capacity trucks placed a strain on supply chains. Despite outside adversity, truckers stuck with it and took pride in exceeding expectations during a stressful year.
Looking to the Very Near Future
After an incredibly busy year, and with decreased trucker turnover, many trucking companies are in a position to consider expansion. Simultaneously, they are dealing with unpaid receivables from the end of last year. In order to boost cash flow and increase capital reserves to act on growth plans, trucking companies are using freight load factoring. Instead of waiting for payments from clients, freight load factoring converts unpaid receivables to cash within 24 hours, without placing any debt on the books. Express Freight Finance is a national leader in factoring services. Contact our offices today to get started.