Driver Turnover Continues at Elevated Levels, ATA Says
Driver turnover remained at elevated levels for truckload fleets of all sizes, inching up one percentage point to 97% at larger carriers and remaining at 94% at smaller fleets, American Trucking Associations reported.
The numbers compared to the second quarter of last year showed sequential stability in both the truckload fleets with revenue of more than $30 million and those with revenue below that benchmark.
However, on a year-over-year basis, the churn at smaller fleets jumped sharply from 74%. Large fleet turnover in the comparable 2013 quarter also was 97%.
“Driver turnover, which is a good barometer of the driver market, remains high,” said ATA Chief Economist Bob Costello. “While it is not approaching its historic highs of the early 2000s, continued economic growth and increased freight demand will continue to exacerbate the shortage of drivers many sectors of the industry are witnessing.”
“It is interesting to note, historically, the turnover rate for small truckload fleets was much lower than for larger carriers,” Costello said. “However, with increasing pressure to recruit and retain good, experienced drivers, we’re seeing higher turnover rates at small fleets – with perhaps improving pay and benefit packages at large carriers being a reason.”
Truckload fleets in the third quarter of last year raised driver compensation at a record pace, according to the National Transportation Institute’s study of pay and benefit trends at more than 300 truckload fleets. Increases were announced by 42% of truckload fleets, compared with the prior record of 11%.
Those driver pay increases included several that topped 10%, with a median rise of 5.6% .
In addition, ATA reported that turnover at less-than-truckload carriers was 13%. That was two percentage points higher than the second quarter of last year and matched the total in the third quarter of 2013.
ATA’s latest large truckload turnover number was revised from a preliminary 103% total that was announced in October.
Q3 TL annualized driver turnover was essentially unchanged from Q2 at high rates; 97% for large TLs, 94% for small TLs, but just 13% for LTL
— Bob Costello (@ATAEconBob) January 28, 2015
