Resources

How The Truck Driver Shortage Impacts Businesses

Posted on by Sitecare Support
The transportation industry is facing a growing problem: a significant shortage of truck drivers. The New York Times reported in July that the truck driver shortage has hit a record deficit nationwide, with approximately 50,000 more drivers currently needed to meet the ongoing and increasing demands of a thriving economy. The Safety Resource Center reports the actual demand, not just openings, is enough to fill 120,000 driver positions. While this is by no means a new problem — the trucking industry has been struggling to employ enough drivers for some time — these numbers mark a potential tipping point that could have a ripple effect through the economy. Let us explore this issue and how these shortages are and will impact businesses in general.

Why the Shortage?

There are a variety of factors affecting the driver shortage, but they can generally be boiled down to two issues that go hand-in hand:
  1. The job itself is physically challenging. Truck drivers work long hours. They are also frequently faced with shifting deadlines based on conditions at both pickup and delivery Safety can sometimes become an issue.
  2. The pay is frequently inadequate. The Bureau of Labor Statistics places the median wage for truck drivers at $42,480 a year. There is more pressure to pay as much as $50,000-$70,000 for good drivers, but today, competitive freight rates do not have that type of margin to cover that level of driver compensation.
  3. Truck driving as a profession can require long hours and extended time away from home.

A Ripple Effect

Over time, the driver shortage has had a cascading effect, impacting almost any business that either sells or uses physical products. For example:
  • Delays in delivery can create scarcity and put upward pressure on prices for the products.
  • Transportation costs also go up by creating additional though inefficient transport to make up for missed or short deliveries.
  • An increasing number of companies (Walmart, for example) are insourcing their transportation, manning their own fleets, and paying very attractive wages to their own drivers rather than outsourcing to third-party logistics companies.
  • Those outside carriers now face an even greater shortage with more drivers gravitating to the wages paid and operating model (drop and hook) by companies insourcing their logistics.
  • …and the cycle continues.

Solutions

There are no easy answers to this ongoing problem, but thought leaders are working on ways to alleviate the truck driver shortage. Some possibilities that may help:
  • Easing of government restrictions that make drivers’ jobs more difficult or make the entry points too steep. The federal government is considering, for example, reducing the driving age from 21 to 18 for interstate drivers.
  • Working toward autonomous trucking. Self-driving trucks could theoretically reduce the demand for truck drivers. However, safe applications and insurance-related issues for this technology are still a long way off, so we do not anticipate seeing these trucks hitting the mainstream anytime soon.
  • Since the above two possibilities are out of the hands of many companies, we believe the best options is to create greater incentives for drivers, either in the form of higher pay, better benefits or working to change the appointment to delivery model.
While there are admittedly no instant solutions on the horizon for the national driver shortage, most progressive Refrigerated LTL Carriers are working multiple fronts to make sure they have the drivers required to legally and safely deliver their customers’ product in an expanding economy. Contact us today to learn more about how and why we are expanding our pool of drivers.

Colonial Cartage Named a Top Carrier for 2017

Posted on by Sitecare Support
ATLANTA, GA., September 25, 2017 – Colonial Cartage Corporation (Colonial) has been named by Inbound Logistics magazine as one of the nation’s Top 100 Truckers for 2017. The Top 100 List will appear in the September issue of Inbound Logistics.

“For the 4th consecutive year, Colonial has been recognized as a Top 100 national motor carrier,” said John Bolla, general manager of Colonial Cartage Corporation. “Colonial is committed to providing excellent service to our customers and truly investing in them. We are honored that an industry standard such as Inbound Logistics magazine recognizes that commitment.”

“Inbound Logistics‘ Top 100 Truckers list serves as a qualitative assessment of service providers we feel are best equipped to meet and surpass readers’ evolving motor freight transportation needs. Distilling the Top 100 is never an easy task. Each year, Inbound Logistics editors select the best transportation providers by carefully evaluating submitted information, conducting personal interviews and online research, and comparing that data to our readers’ burgeoning motor freight and logistics challenges. IL editors selected this year’s class of Top 100 Motor Carriers from a pool of more than 200 companies,” said Felecia Stratton, Editor, Inbound Logistics. Inbound Logistics is the leading trade magazine targeted toward business logistics and supply chain managers. The magazine’s editorial mission is to help companies of all sizes better manage corporate resources by speeding and reducing inventory and supporting infrastructure and better matching demand signals to supply lines. More information is available at www.inboundlogistics.com.

Colonial Cartage Named a Top Carrier for 2016

Posted on by Sitecare Support
ATLANTA, GA., September 29, 2016 – Colonial Cartage Corporation (Colonial) has been named by Inbound Logistics magazine as one of the nation’s Top 100 Truckers for 2016. The Top 100 List will appear in the September issue of Inbound Logistics.

“For the 3rd consecutive year, Colonial has been recognized as a Top 100 national motor carrier,” said Carey Dukes, General Manager of Colonial Cartage. “We continue and will continue to exceed our customers’ expectations with cost-effective, on-time deliveries in our expanding service area. This recognition is a result of the efforts of the entire Colonial team.”

“Shippers gain a competitive edge thanks to the innovative solutions and partnership approach provided by Colonial Cartage. Colonial consistently identifies and shares ways to reduce total cost of logistics ownership while keeping customer service to the end customer at the highest levels. That’s why Inbound Logistics editors have recognized Colonial Cartage as a 2016 Top 100 Trucker,” said Felecia Stratton, Editor, Inbound Logistics.

Colonial Cartage Named a Top Carrier for 2015

Posted on by Sitecare Support
ATLANTA, GA., September 21, 2015 – Colonial Cartage Corporation (Colonial) has been named by Inbound Logistics magazine as one of the nation’s Top 100 Truckers for 2015. The Top 100 List will appear in the September issue of Inbound Logistics.

“Premium service, reliability, scalability – those are the watchwords of supply chain professionals who need to provide service to their increasingly demanding customers. Everyone is seeking to do more with less inventory in the pipeline. That is a near-impossible task without reliable transportation partners. Inbound Logistics recognizes Colonial Cartage Corporation as a 2015 Top 100 Trucker for consistently matching the needs of world-class logistics practitioners with speed, reliability, and efficiency,” said Felecia Stratton, Editor, Inbound Logistics. “Inbound Logistics‘ Top 100 Truckers list serves as a qualitative assessment of service providers we feel are best equipped to meet and surpass readers’ evolving motor freight transportation needs. Distilling the Top 100 is never an easy task. Each year, Inbound Logistics editors select the best transportation providers by carefully evaluating submitted information, conducting personal interviews and online research, and comparing that data to our readers’ burgeoning motor freight and logistics challenges. IL editors selected this year’s class of Top 100 Motor Carriers from a pool of more than 200 companies. The service providers we selected are companies that, in the opinion of IL editors, offer the diverse operational capabilities and experience to meet readers’ unique supply chain and logistics needs.”

Colonial Cartage Corporation Expands Service Area

Posted on by Sitecare Support
ATLANTA, GA., January 28, 2014 – Colonial Cartage Corporation (Colonial) has expanded its service area of LTL shipping lanes for the second time in 18 months. The asset-based dry and refrigerated carrier now provides regularly scheduled temperature-controlled LTL delivery to all points in the Southeast, Midwest, Southwest, and Great Plains to the Rocky Mountains. This includes the addition of Ohio, Indiana, Illinois, Michigan, Wisconsin, Iowa, Minnesota, Kansas, Nebraska, Colorado, and the Dakotas. The sister company of Atlanta Bonded Warehouse Corporation (ABW) also provides additional truckload and plant support services to the Southeast and select states in the service areas. “From a single inventory, we can now cover 25 states with scheduled LTL deliveries, allowing our customers to minimize their inventory investment, reduce the complexity of replenishments, and improve their inventory turns,” said Carey Dukes, General Manager of Colonial. “Most importantly, we are guaranteeing weekly deliveries to over half the US. This service expansion makes Colonial one of the few asset-based providers in the US to guarantee weekly LTL deliveries. ”