Truck Drivers in ‘Exceptionally Short Supply,’ Fed Says
Truck drivers are reported to be in “exceptionally short supply” in some regions of the country, especially in the New York, St. Louis and Kansas City areas, the Federal Reserve said in a report.
Despite the shortage of drivers, sturdy demand for trucking services was noted in the Atlanta and Dallas districts, the Fed said in its Beige Book report released Oct. 14. The survey is based on reports gathered by regional Fed banks to give an anecdotal picture of the economy.
The overall economy continued to expand across most sectors and regions of the country from mid-August through early October, according to the Fed.
Contacts in trucking and other modes of transportation reported an ongoing shortage of qualified operators and technicians in the St. Louis region, according to the report. The Kansas City district reported it was experiencing a shortage of skilled technicians as well as truck drivers.
In the Richmond district, an executive at a national trucking firm headquartered in the region reported, “Demand was a little softer because their customers' inventory levels were high.” A seasonal pickup is expected to begin in the next few weeks, the executive said.
In the Atlanta region, trucking companies reported healthy demand, mostly attributed to growth in e-commerce. However, flatbed volume —especially steel shipments —showed some slowing in growth.
Rail contacts in the Atlanta region told the Fed total rail carload volume declined slightly due to year-over-year, double-digit decreases in shipments of coal, iron and steel scrap, and metals. District port contacts reported strong demand across all types of cargo, according to the report.
The Chicago district reported the heavy-duty truck, auto and aerospace industries continued to experience solid gains, and most other industries saw limited growth.
Dallas trucking volumes rose, and one contact told the regional fed it had added capacity even as rail cargo volumes declined, especially in shipments of petroleum products and nonmetallic metals, including sand used in drilling.
The Fed releases its Beige Book report eight times a year. The report, which covered Aug. 24-Oct 4, was prepared by the Federal Reserve Bank of New York.
