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Letter From President
Logistics Services Trends
2006 Industry Issues
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Driver Shortage Tops List Of Industry Issues

The American Trucking Association has published the 2006 Top Industry Issues report, based on an extensive survey conducted by the American Transportation Research Institute. The results are intended to provide insight into the critical short — and long-term issues confronting the U.S. trucking industry. The following issues are reprinted in part from the report:

  1. Driver Shortage – Driver shortage replaced fuel costs as the number one issue as compared to the 2005 survey results. With a growing economy, industry capacity issues are taking precedent over stabilizing/declining fuel prices. This is readily apparent with respondents indicating, particularly in the truckload sector, that the driver shortage is forcing companies to turn down freight transportation orders and raise driver compensation.

  2. Fuel Issues – While fuels price remain below peak levels, respondents acknowledged the volatility of fuel prices; which can quickly increase in the future amid rumors of political instability or OPEC production cuts. Carriers and drivers are obviously still concerned about this issue based on its second place ranking.

  3. Driver Retention – Even though the trucking industry has recently hired more than 25,000 new drivers, driver retention and driver turnover remains a major concern for carriers. With the per-driver cost of hiring and training at an estimated $4,000 to $8,000, carriers are extremely concerned about high turnover.

  4. Hours-of-Service – HOS remained the number four concern for the industry for the second year in a row. HOS is still a top concern among the industry and drivers, especially team drivers who have strong concerns over the October 2005 HOS rules change which eliminated drivers’ ability to split the time spent in the sleeper berth. In addition, anecdotal research is now showing slight and unexpected decreases in freight productivity associated with the HOS rules changes.

  5. Congestion – Concern over congestion is growing annually based on its 8th place ranking in 2005. Heavy congestion in some areas can delay shipments and dramatically erode driver’s HOS-regulated driving time. For many urban trips, the percentage of congestion-related delays is now becoming a considerable percentage of total truck driving time. Idling in traffic also reduces fuel economy and results in increases in air pollutants.

The remaining top 10 items (6) Government Regulations, (7) Highway Infrastructure, (8) Tort Reform, (9) Tolls/Highway Funding, (10) Environmental Issues.



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