Opinion: Legislative Help for the Driver Shortage

This Opinion piece appears in the March 21 print edition of Transport Topics. Click here to subscribe today.

By Brandon Musso

Director of Logistics

ReTrans Inc.

The trucking industry is searching for ways to alleviate what has become a national epidemic that apparently is growing — the driver shortage. But this problem may not be solved without tackling the enormous elephant in the room, which is costly for drivers and fleets: driver downtime and detention.

Musso

However, a new strategy designed to tackle this problem, called Even-Flow, has been drafted into a bill working its way through the Tenn essee Legislature. The bill, HB1962, is sponsored by Rep. Karen Camper (D-Memphis) and Sen. Mark Norris (R-Collierville), the majority leader of the Senate. It has appeared in local publications and business journals, and is supported by several state-level industry organizations while gaining national attention within the industry community.

The objective of Even-Flow is to prevent driver downtime by providing tax reform for North American shippers whose loading and unloading processes is limited to no more than two hours. This would make drivers’ trips more efficient, increase operating revenue potential of the carrier and driver, enhance warehouse efficiencies with cost-savings opportunities and provide more freight solutions for intermodal capacity.

Even-Flow reduces nonoperating and nonrevenue generating downtime for the carrier, driver, shipper and state by providing a performance-based strategy to limit loading and unloading times to build a cross-functional, constant revenue flow. A mutually beneficial relationship among state, shipper, driver and carrier is the only solution to increase revenue streams for each transactional-invested member to protect economic balance and minimize operating costs to turn more freight faster. Every party involved within the supply chain must have an invested interest to helping resolve the overall problem.

Across many platforms, there are a variety of industry-based solutions to the driver-shortage issue that involve one the following areas to adhere to demand:

• Over-the-road equipment enhancements such as larger trailers with increased axle and tire counts for weight distribution.

• Modification of OTR legal weight reform.

• Road-system improvements to address congestion, as the U.S. population has doubled since the Eisenhower administration and is expected to continue to grow at a comparable pace.

• Increase railroad capacity.

I agree that all of the criteria above are necessary in some capacity and provide some benefits to accommodate demand, safety and environmental health — all important facets involved in moving more freight through a driver-shortage period. However, they do not address the driver issue or shippers’ concerns. In most logistics channels, a driver at some point will be needed in-transit to final consignee. The driver is the vital element with the overall ability to move more freight.

In all cases above, what are the incentives for a person trying to decide whether he or she wants to be a professional truck driver?

• Invest in an asset to transport the increased OTR weight and length, especially where there is a shortage of professionals who can actually operate the asset?

• Parallel pay packages that complement weight and increased driving hiring requirements?

• Or most costly, experience excessive downtime at shippers — loading and unloading — that diminishes legal on-duty hours for the driver and prevents generating more revenue?

The main focus within our current market situation needs to be strengthening overall shipper efficiencies in turning inbound and outbound freight at a pace to ultimately revolutionize supply chain motivations. As highlighted in the proposed legislation, those efficiencies will provide, among other things:

• States that can lure companies to it by providing a favorable corporate revenue opportunity climate.

• Increased state and national employment rates — with employment tiers built within legislation by amount of tax credit received. For every “X” amount of annual tax credit received, “X” amount of jobs should be created.

• Attract global business to operate in-state while minimizing initial capital investments — with Even-Flow operating as a performance-based tax incentive.

• Become a “driver- and shipper-concerned state” that attracts industry professionals and talent to it while addressing industry demands of promoting fluid revenue opportunities where state performance incentives act as a catalyst in assisting to drive production and global commerce.

• Assist in providing resolution to the driver-shortage issues by preserving economic balance while controlling inflation, as in inflated rates to ensure capacity married with fluctuating fuel costs and increased equipment and operating costs.

• Increase annual driver revenue potential.

• Increase gross state product and gross domestic product.

• Provide a safer transportation environment by making trips more efficient, decreasing drivers operating unlawfully — especially when they try to make up for loss of time and revenue.

Even-Flow protects the end user while increasing the GSP and GDP value, elevates employment rates and ultimately provides a variety of benefits for both shipper and trucker while supporting all modes of transportation.

While there is no perfect, simple, or limited cost solution to resolve the driver shortage, this program can benefit each invested channel while operating parallel to a common objective in resolving a nationwide problem.

Musso is based in Memphis, Tennessee. He has 14 years of transportation management experience in trucking administration and operations, third-party logistics operations and driver supervisory roles. He also was a driving factor in developing the Even-Flow strategy. ReTrans Inc. is a logistics company owned by Kuehne & Nagel Inc.