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Tools to Combat the Ongoing Freight Recession

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2024 has been off to a rough start in many ways for the transportation industry, with carriers still feeling the lingering effects of a labor shortage, rising prices, and supply chain disruptions.  

 

To top it off, the freight recession that began in 2023 has continued to affect carriers of all sizes, with layoffs and closings increasing across the country.  

 

However, as the economy begins to stabilize and consumer spending returns to pre-Covid rates, some industry experts are predicting a turnaround and return to normalcy by the end of the year.  

 

Although the future is unpredictable, there are some tools that every carrier should utilize to navigate the ongoing freight recession. Keep reading to find out what’s causing the recession, and how your carrier can cut costs and optimize operational efficiency to stay ahead of the curve and weather these challenging times.  

 

Understanding the Landscape 

In order to deal with the impacts of the ongoing freight recession, it’s essential to understand why it began in the first place.  

 

The first two years of the pandemic saw a rapid increase in consumer spending, leading many carriers to enter the market while shippers prepared for the trend to continue. However, the freight boom was relatively short lived, and there was soon an oversupply of trucks with a decreasing amount of available freight.  

 

This quick change had an dramatic impact on carriers nationwide, with FreightWaves estimating that 35,000 recently opened trucking companies had shut down by the end of 2023. The effects weren’t just limited to new businesses though, as seen when long-standing transportation company Yellow Corporation filed for bankruptcy in the same year.  

 

These factors, combined with high fuel prices and a fluctuating global economy, have made it imperative for carriers to prepare for the future and position themselves for success.  

 

Operational Efficiency is Key 

The best way to safeguard your carrier against the negative impacts of the freight recession is to ensure that you are effectively and efficiently utilizing both your equipment and team members.  

 

Carriers of any size cannot afford unnecessary expenses in today’s market, with the American Transportation Research Institute finding that operational costs rose over 53% per mile from 2022 to 2023. Fuel alone accounted for 28% of total operating costs on average, making efficiency a priority for every driver.  

 

Investing in transportation management systems and route optimization tools might come with an upfront cost, but the payoff is immediate as carriers can save on time, fuel expenses, and vehicle repairs.  

 

Fleet telematics and tracking systems, such as Electronic Logging Devices and GPS tracking, provide real-time data on vehicle location, fuel consumption, driver behavior, and maintenance needs. This allows carriers to optimize routes, reduce idle time, and improve fuel efficiency while increasing driver safety.  

 

Predictive analytics and AI-based technology work by analyzing existing data to forecast demand, optimize pricing, and prevent supply chain disruptions. These algorithms can also adjust capacity according to anticipated market trends and set competitive rates based on demand fluctuations.  

 

Digital freight matching is another tool many carriers are using to efficiently connect drivers with available freight while saving time on paperwork, optimizing space, and cutting costs.   

 

Instead of the traditional methods of freight brokerages and third-party logistics (3PL) businesses, digital freight matching uses predictive analytics and algorithms to optimize matches for service, efficiency, capacity, and cost. Since most DFM platforms are available as mobile apps or online websites, this also provides a single access point for every step of the matching process.   

 

Prioritize Driver Engagement and Retention  

Another ongoing problem that is likely familiar to every carrier is driver turnover and low retention rates. This issue can make the effects of the freight recession worse, leading to high recruitment costs, training expenses, and disruptions in service.  

 

By focusing on creating a driver-centric work environment and engaging existing employees, carriers can avoid additional expenses and cultivate a culture of hardwork and dedication.  

 

Consider offering frequent driver engagement surveys or one-one-one meetings to gather feedback and demonstrate your commitment to the needs of your drivers. Make sure to implement actual changes from the feedback to show that you really value their perspectives and experience.  

 

Investing in your team by providing skill development training, certification programs, and career advancement opportunities is another way to raise retention rates while also attracting other qualified drivers.  

 

Encouraging and rewarding driver milestones and safety accomplishments can also increase driver morale while saving money on fuel costs and vehicle repairs. Studies have shown that driving above 60 miles per hour lowers fuel efficiency, a behavior that can be changed by safety rewards and fleet telematics.  

 

 

 

For more information on the state of the transportation industry and advice to recruitment and retain qualified drivers, be sure to check more of our Employer Blog posts and follow us on social media.  

Looking to Diversify Your Candidate Selection Pool? Here’s How

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Diversify Your Truck Driver Candidate Pool

In today’s highly competitive market, there’s no “one size fits all” approach to recruiting and retaining qualified truck drivers.  

 

Recruiters must be willing to explore a variety of strategies and sources to find top talent and build strong, reliable teams. By increasing the scope of your recruiting efforts and demonstrating your commitment to the needs of all your drivers, you not only enhance the diversity of your candidate selection pool, but also foster a culture of inclusivity and understanding within your company.  

 

Keep reading to find out why diversifying your candidate selection pool contributes to a more dynamic and innovative workforce, and how expanding your recruiting efforts could position your company for long-term success in the ever-evolving landscape of the transportation industry. 

 

Why does this matter? 

You might wonder why you should expand your candidate selection pool if you’ve seen continued success from your long-time sourcing strategies.  

 

Even if you have a steady stream of applicants and a team of quality drivers, it’s still important to focus on future growth and prepare for potential changes in the industry. By expanding your candidate selection pool, you not only mitigate risks associated with unforeseen challenges, but also ensure adaptability and resilience in the face of evolving demands and opportunities. 

 

Sourcing your candidates from a diverse array of backgrounds, experience levels, and skill-sets also improves the overall function of your company. Diversity is not just a buzzword, it is something that helps companies better reflect the communities they serve while driving innovation and improved decision-making.  

 

Diverse teams offer a wider variety of perspectives and experiences, which leads to more effective problem-solving and creative solutions. In a field like trucking, where split-second decisions can have a large impact, diverse perspectives also enhance safety and efficiency.  

 

Broaden your reach  

The best approach to diversify your candidate selection pool is to source your drivers from a variety of channels. It’s important not to rely on a single method, especially as technologies change and the industry continues to grow.  

 

In today’s industry, social media should play a large role in your recruiting efforts, alongside traditional methods such as flyers, recruiting fairs, and team referral benefits. Meet drivers where they’re at by posting to a variety of online job boards and social media platforms, ensuring maximum visibility and engagement. By leveraging the power of social media, you can reach a broader audience of potential candidates, including passive job seekers who may not actively be searching through traditional channels.  

 

Utilize innovative technology to assist with your recruiting efforts, such as AI-driven applicant tracking systems or intelligent driver match technology. Driver-centric platforms, such as Drive My Way’s personalized recruiting software that matches truck drivers and owner operators with carriers looking to hire, can revolutionize your recruitment process by streamlining candidate selection and ensuring better alignment between drivers and carriers.  

 

Embrace diversity  

Another key step in expanding your candidate selection pool is by attracting a diverse group of applicants. By embracing diversity and highlighting it as a strength at your company, a wider variety of drivers will be encouraged to apply and refer others as well.  

 

Promote inclusivity by providing opportunities that benefit and support members of underrepresented communities in trucking, including women and people of color. Consider offering options such as mentor programs, which have been proven to positively impact drivers and build stronger communities within carriers.  

 

A diverse group of applicants can also include factors such as differing age groups and experience levels. A wide range of age of applicants is important for safeguarding against future uncertainty, especially as many trucking carriers face the challenges of an aging workforce. By valuing the contributions of drivers across different stages of their careers, you foster a culture of mentorship and continuous learning while strengthening your company’s resilience and adaptability in the face of evolving industry demands. 

 

Network and collaborate  

Look to other members of the trucking industry to continue growing your company and discover new methods of recruitment. Industry associations, such as the American Trucking Association or The National Association of Small Trucking Companies, are useful for making industry connections that can help your company find new ways to build relationships with potential candidates.  

 

Consider collaborating with trucking schools to identify and nurture talent early on. These partnerships might take longer to pay off, but they can result in a steady stream of qualified candidates who already know your company values, expectations, and culture.  

 

Focus on retention  

Increasing driver retention rates by prioritizing the experience of every driver is not only vital for recruiters aiming to attract top talent and improve overall driver satisfaction, but also for expanding the scope of your candidate selection pools.  

 

Investing in programs and infrastructure that demonstrate a commitment to drivers’ needs, mental health, and physical well-being is key to achieving this goal. Consider implementing options such as a regular driver engagement survey, which shows dedication to drivers’ feedback and perspectives, thus fostering a culture of inclusion and empowerment within your company.  

 

Offering other opportunities to support drivers, such as training for veterans transitioning into the industry or resources to prioritize and protect your drivers’ mental health, can position your carrier as a forward thinking and driver-centric organization where any truck driver would want to work.  

 

 

 

For more information on evolving trends in the trucking industry and how to stay ahead of the curve when recruiting and retaining quality drivers, be sure to follow us on social media and stay up to date on our Employer Blog posts.  

Is Pay the Most Important Factor in Truck Driver Recruitment?

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Now, more than ever, truck drivers have the ball in their court when it comes to selecting and applying for CDL job listings. Drivers are able to make their decisions based on many factors, including benefits, distance from home, freight type, and pay.  

 

Traditionally, many recruiters have focused on pay as the key differentiating factor that could set them apart from their competitors. However, today’s drivers are making it clear that higher pay is not always enough to increase driver satisfaction and retention rates.  

 

So then, what is the most important factor in truck driver recruitment? Keep reading to find out why pay isn’t always the number one answer, and how you can adjust your recruiting efforts to keep up with evolving industry trends.  

 

The Importance of Pay 

Driver compensation is still an essential part to recruiting and retaining quality drivers. In recent years, sign-on bonuses and benefit packages have continued to increase in value nationwide. In fact, in a speaker panel at the 2023 American Trucking Association Management Conference, CarriersEdge President Mark Murrell noted that some carriers are now paying between $200-$500 per day of driver orientation. This is a steep increase from the long standing industry standard of $100 per day.  

 

An increase in base compensation also still topped the list of driver concerns in Drive My Way’s recently released Driver Happiness Report, which collected the responses of over 500 drivers nationwide. However, nearly 10% of surveyed drivers also answered that an increase in employer communication and listening would improve their satisfaction and workplace happiness.  

 

In the same ATA Management Conference panel, American Central Transport President Phil Wilt noted the success of the company’s weekly driver surveys and the introduction of an employee life coach. Wilt believes that listening to driver concerns and providing extra support during the initial six months of employment has been critical to increasing driver satisfaction.  

 

“Every year, we’re figuring out what is the next thing that we can do that really positions us as a place where a driver says, ‘I wish I had come to you before,’” Wilt said. “And honestly, that’s probably what we hear a majority of the time from our drivers.” 

 

Listening to and Understanding the Drivers 

It’s important to keep in mind that different drivers prioritize different qualities in a position. Drivers just starting out might want to be on the road more than drivers who have a family. These drivers may only be looking for positions where they can be home each day.  

 

When launching your driver recruiting campaign, keep in mind the type of driver you are looking for. Researching and understanding this persona will help you reach your target audience, and will also enable you to provide what that driver is seeking. For example, if your carrier allows pets or partner driving, mention that in your recruiting efforts. Even if some candidates aren’t looking for this benefit, those who are will be more inclined to apply.  

 

There are also many ways you can demonstrate to your drivers that you listen to them and value their feedback. Providing surveys or frequent touch points is extremely beneficial, especially during the onboarding process and first months of employment.  

 

Carriers that create a positive work environment by prioritizing drivers’ physical and mental health are also more likely to have satisfied drivers with less turnover. Offering opportunities for professional development and support when drivers need it can increase your chance of word-of-mouth recommendation and internal promotion.   

 

 

 

Over the years, recruiting for CDL drivers has changed a lot. Pay is no longer the sole factor that can set your carrier apart from your competitors. By focusing on offering benefits, listening to your employees’ feedback, and fostering a positive work environment, you can decrease turnover and increase driver satisfaction.  

 

If you’re looking for more advice on bolstering your driver recruitment efforts, be sure to check out our Employer Blog, or follow us on social media!  

Drive My Way’s 2023 Driver Happiness Report Available Now

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How satisfied are the drivers at your company? What about truck drivers nationwide?  

 

The answer to that question, and many others, can be found in Drive My Way’s 2023 Driver Happiness Report. Using data from the responses of over 500 professional truck drivers across the nation, we have analyzed driver satisfaction rates and the factors that affect them and compiled it into a downloadable PDF— and the results might surprise you.  

 

When asked if they were happy at their job, only 51% of drivers said yes. This result comes as a 3% decrease from our 2019 Happiness Report, when 54% of driver’s answered positively.  

 

While happy drivers are more likely to stay at their carrier, and three times more likely to refer others to their employer, drivers overall are nearly twice as likely to look for a new job than they were in 2019.  

 

The report isn’t just numbers, however. Drivers also made clear what employers can improve on to decrease turnover and increase retention rates. Compensation and communication topped the list, but there were plenty of other areas where drivers feel employers could step up to increase satisfaction.  

 

Interested in learning more about what these drivers had to say? Wondering what changes could differentiate you from your competition as we enter into 2024?  

 

To download Drive My Way’s Driver Happiness Report on the state of satisfaction among professional truck drivers in 2023, just click to this link and enter your email and company information.  

 

Drive My Way is a truck driver recruiting platform completely focused on drivers and their needs. We match company drivers and owner operators with CDL jobs based on more than 20 personal lifestyle preferences. If you believe we could help you reach your recruiting and driver satisfaction goals, visit our employer platform here.  

2023 ATA Management Conference & Exhibition Took Place in Austin, TX

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This year’s premier trucking industry event, the annual American Trucking Association’s Management Conference & Exhibition, was recently held at the Austin Convention Center in Texas.  

 

Taking place from October 14-17, the event included a myriad of sessions on top industry issues, panels with experts and industry leaders, and a 250,000-square-foot MCE Exhibit Hall that featured the newest and most innovative technologies and services for the trucking industry.  

 

If you didn’t get the chance to attend this year’s conference, or you’re just looking for a refresher on your jam packed experience, keep reading for Drive My Way’s rundown on the biggest takeaways and important moments from the 2023 ATA Management Conference & Exhibition.  

 

“The Rhythm of Change: Navigating the Future of Trucking” 

A common theme throughout the four day conference was the future direction of the trucking industry amid the current issues facing today’s driver’s and employers.   

 

“MCE is trucking’s foremost event for policy and strategy, bringing together trucking’s sharpest 

minds and most passionate supporters to tackle the top issues confronting our industry,” said ATA President & CEO, Chris Spear. “In the face of a turbulent economy, unworkable environmental mandates, pressing labor issues, and rampant lawsuit abuse, our industry is experiencing a number of defining challenges. By leveraging the immense talent within our industry and drawing on the knowledge of experts, we can emerge even stronger.” 

 

More than 3,100 leaders in the trucking industry, representing 790 companies from across North America, Europe, and Asia, spent their time at this year’s conference learning how to adapt to evolving trends, weighing in on regulatory policy and legislative issues, and networking to build industry wide connections.   

 

A variety of educational sessions and panels took place throughout the conference, each led by experts in the field who shed light on innovative strategies for continued success in the industry. An October 16 panel that included American Central Transport President and COO Phil Wilt, Prime Inc. Director of Operations Jim Guthrie and CarriersEdge President Mark Murrell was filled with important takeaways for those looking to increase driver retention and satisfaction.  

 

Murrell, co-founder of CarriersEdge and co-creator of the annual workplace recognition program Best Fleets to Drive For, explained that companies must offer more than competitive pay and benefits if they want to increase retention of quality drivers. Companies must also regularly seek driver feedback and actually act on it.  

 

“Everybody can put a survey out and say, ‘Tell us what you want! Tell us what you want! Tell us what you want!’” said Murrell. “But if [drivers] don’t see you actually doing something with that feedback, they start to get quiet. You’re highlighting the things you’re doing as a response to their feedback. You’re giving them an update on what’s happening. That’s a critical part.” 

 

However, Murrel made clear that competitive pay is still a key differentiating factor. Although the long standing industry-standard of orientation pay for drivers has been $100 a day, Murrel said that many fleets are now doubling or tripling that offer. With pay being a perennial top concern for drivers, knowing that some fleets offer as much as $500 per day of orientation is important to keep in mind when planning next quarter’s budget.  

 

Awards, Exhibits, and More! 

The ATA Management Conference is also a time to celebrate industry leaders and game changers who are constantly working to improve the field of trucking for everyone. For the second year in a row, the ATA recognized companies from across the nation with the Diversity Equity and Inclusion Change Leader Award for their efforts and commitments to ensuring their companies are places of tolerance and acceptance.  

 

This year, eight companies were recognized with the award: 

 

  • Believers Trucking 
  • Cargo Transporters Inc. 
  • Covenant Logistics 
  • Garner Trucking Inc. 
  • Knight-Swift Transportation 
  • Kodiak Robotics 
  • Pilot Flying J 
  • Werner Enterprises Inc. 

 

Each year, a major draw for many attendees is the MCE Exhibit Hall. This year’s 250,000 square-foot hall included over 200 companies offering the latest products, services, and technologies from the industry’s top manufacturers and suppliers. From truck parts to AI technology to banking and insurance services, the Exhibit Hall contained many tools that are sure to be essential to the future of the trucking industry.  

 

The conference also included an important election by the ATA board of directors to decide who would succeed former ATA chairman Dan Van Alstine, president and chief operating officer of Ruan Transportation Management Systems. On October 17, the board voted to elect Andrew Boyle, co-president of Boyle Transportation in Billerica, Mass. 

 

“It is a tremendous privilege to be chosen by my peers in the trucking industry to be ATA chairman,” Boyle said. “Being selected to serve the millions of hardworking men and women who make up this great industry is an incredible honor, and I’m excited to take on this challenge.” 

 

 

Every year, the ATA Management Conference & Exhibition proves to be the preeminent celebration of industry leaders and the birthplace of future trucking trends. The 2023 conference was no exception, offering attendees the opportunity to learn how to stay ahead of changes in the industry and build important connections that help to keep the world of commercial truck driving united and accessible for all.  

 

For more trucking updates and news, be sure to follow us on social media or stay tuned to our weekly blog, full of original content on the latest trucking trends and recruiting strategies.