Guest Contribution on the Driver Shortage Narrative from Will Cook
The first in what I hope are many written contributions from my fellow truckers.
Autonomous Truck(er)s is very happy to bring you the first written guest contribution to grace this Substack.
Since starting this project, I have had an open door policy to my fellow truckers (or anyone, really) who feel they have something to express in the written form. To my great discredit, I haven’t advertised that offer much as of late; however, repeat guest and contributor to my podcast, Mr. Will Cook of America Without Drivers, has stepped up to the plate with a short examination of the driver shortage narrative, a topic that is near and dear to this Substack.
I will list the episodes which feature Will below his essay.
Thanks again for reading, and I hope to bring you more guest contributions soon.
The Complex Realities of the Trucking Industry: Examining Mega Carriers and Driver Shortages
The trucking industry, a critical component of the American economy, faces a range of complex challenges that have led to the rise of foreign drivers and the dominance of mega carriers. Delving deeper into these issues, it becomes evident that the prevalence of foreign drivers, the undercutting of local companies, and the alleged driver shortage require a closer examination. By shedding light on these facts, we can gain a more comprehensive understanding of the dynamics at play within the industry.
Mega Carriers and the Truck-to-Driver Ratio:
One significant aspect contributing to the presence of foreign drivers is the purchasing behavior of mega carriers. These industry giants often acquire more trucks than they have drivers for, leading to a surplus of available vehicles. This surplus incentivizes carriers to seek out additional drivers, including foreign workers, to fill the excess capacity. While this practice may help mega carriers maintain their operations, it raises questions about the overall workforce distribution within the industry.
Undercutting and Market Dynamics:
Another factor influencing the prevalence of mega carriers and foreign drivers lies in their ability to undercut local companies. Mega carriers often offer lower rates to shippers, making it more appealing for them to work with these larger companies. This competitive advantage can undermine the prospects of local carriers, who may struggle to compete on price. Consequently, shippers may opt for the cost-effective solutions provided by mega carriers, perpetuating the dominance of these industry giants.
Rate Fluctuations and the Spot Market:
Claims of a driver shortage are often refuted by the dynamics observed in the spot market. The spot market, which reflects real-time freight rates, does not consistently indicate a shortage. In fact, when there is a genuine shortage of drivers, it is typically reflected in higher rates. The spot market data suggests that the alleged shortage is specific to certain carriers, particularly mega carriers who tend to rely on lower-wage workers to fill their driver seats. Higher-paying carriers that offer competitive benefits and retirement packages do not appear to experience the same shortage, except for undesirable runs that are less appealing to drivers.
Differentiating Shortage Claims:
The notion of a driver shortage requires careful examination. While mega carriers may assert a shortage of drivers, it is important to recognize that this shortage is specific to their own operations. Carriers offering higher compensation and better benefits do not seem to face the same challenges in attracting and retaining drivers. This discrepancy suggests that the shortage is, in fact, a result of the working conditions and compensation offered by certain carriers, rather than an industry-wide issue.
Conclusion:
The trucking industry's complexities, including the prevalence of foreign drivers, the undercutting of local companies, and the alleged driver shortage, require a nuanced understanding. Mega carriers' purchasing behavior, their ability to undercut local competition, and the dynamics observed in the spot market help shed light on these issues. By acknowledging the underlying factors and differentiating between carrier-specific shortages and industry-wide challenges, we can foster a more balanced and informed conversation about the state of the trucking industry.
Opinions of and written by,
Will Cook
You can hear more from Will in the following episodes of my podcast -
and you can find more of Will’s output at the America Without Drivers Facebook page.
Questions, comments, suggestions, corrections and Hate Mail are welcomed and encouraged - gordilocks@protonmail.com