Which is better for the industry and why?

By Timothy Brady

 1. Don’t want to have to teach an old dog new tricks?

2. They can pay them less?

3. They make money training drivers even if they don't ever hire them?

4. Are they hedging on their available driver pool if the trucker shortage comes to

    fruition?

5. Is it that they want newly-trained drivers instead of the more experienced trucker?

6. All of the above?

7. Or something totally different?

I posed these questions to several trucking internet discussion groups to see what range of answers I’d receive. Discussion participants ranged from trucking company CEOs, presidents, middle management and truck drivers to small motor carriers and owner operators, peppered with a few industry insurers and consultants.

The biggest response came concerning the effects of CSA2010 on the current CDL driver pool. One common thought is that many of the older drivers, particularly truckers with 15 or 20 years of experience, are going to have a diffucult time adjusting to the increased scrutiny in how they operate their trucks. Many are going to have to make major adjustments to their operating procedures to toe the line for CSA 2010--or else they’ll be leaving the industry was the most frequent answer.

But on the other side of the fence are concerns any carrier will have when hiring students directly out of truck driving school. The biggest worry appears to be that newly-trained truckers drive up insurance costs. Because of this, larger carriers will have the upper hand in hiring newbies, as many are self-insured and can set their own insurance underwriting standards. Small carriers will still have to wait for the typical two years’ worth of driving experience before hiring “newly-trained” drivers. So initially, while carriers may be able to pay the newly-trained CDL holder less, there are other costs (which potentially negate the savings), such as those higher insurance rates, higher maintenance costs as they learn to operate a big rig, and of course the lower costs which come from the greater experience of a seasoned trucker. Whether the industry likes to admit it or not, it takes a CDL holder 500,000 miles or 5 years to become a seasoned, experienced trucker with the knowledge of all the different driving conditions and scenarios that are possible involving a big rig. 

But the burning question is: Who do the shippers and receivers want hauling their valued products? Which will they be willing to pay a carrier a higher hauling rate for; a new hire with no experience or an experienced trucker? In the current state of the economy, will it be the lower rate that wins over, or the quality of the service? It’ll be a different answer for each trucking sector and for each shipper and receiver.

With the current low hauling rates and no driver shortage, the reason many larger carriers operate truck driving schools is to create another revenue stream. Is what they are receiving in the form of government student grants and loans the reason for these carriers to fill classes? It’s a well-known fact that less than 50% of trucking school graduates will be driving a truck for a living two years after completing their training. Many will exit before their six-month anniversary. But is it about the revenue stream? Or are these carriers hedging to be sure they have enough warm bodies to fill their trucks if or when the driver shortage comes to fruition?

The answers to all of these questions concerning which is better for the industry, the experienced trucker or the newly-trained driver, can be answered in a single word: Money! It has and always will come down to the bottom line. Carriers are very concerned over the effects of implementing CSA 2010, its overall cost and how that cost can be recouped. Are experienced truckers going to be willing to stay and adjust to the new way of operating? Is it going to be easier to train new entrants to the rules than to get the older drivers to follow them? And which is going to cost the carrier the least? Again, the answer will be different for every carrier.

There’s an even greater challenge for the small carrier as they can’t just go to the local truck driving school and recruit their next new hire. Smaller carriers are still going to rely on experienced truckers to fill their left seats. So how do you, as a small trucking company, find the best-qualified trucker who will follow the rules?

It all has to be done during the recruiting process. Lay out exactly what you expect from the trucker: the importance of staying compliant, not fudging on logbooks, staying within the HOS. Then explain how they’ll benefit from meeting all these requirements in the form of good compensation and not having to worry every time they pull on a scale. In short, be honest, straightforward and fully disclose the good, the bad and the ugly so the trucker doesn’t meet any surprises while driving for you.

Good loads and good roads, everyone.

Timothy Brady  © 2010

To contact Brady, go to www.timothybrady.com