Truck Driver Shortage’s Increasing Trend
Melbourne, Fla.—As the trend continues, throughout the next decade, the industry will have to train and hire 1.1 million new drivers in order to replace older and retiring workers. Should there be no immediate market corrections in the meantime, the shortage may grow to as many as 160,000 empty positions as early as 2028. The American Trucking Association claim that the turnover rate could be as high as 83 percent in some sectors of the industry.
The trucking industry generated $791.7 billion in revenue in 2019, moving 11.84 billion tons of freight, according to the latest edition of American Trucking Associations’ annual data compendium – ATA American Trucking Trends 2020.
It is interesting to know why it is still hard to find enough people for this type of job with excellent pay. Most truck drivers now earn from $42,000 to $100,000, and many trucking companies are desperately seeking drivers and paying signing bonuses and pay raises.
Litigation plays an important role, because given the number of injury attorneys that have run nationwide campaigns, especially here in Florida, have created a negative environment for truck drivers who will be blamed in cases of accidents.
As part of a growing debate, economists are now saying that the current shortage of truck drivers has been seriously misunderstood by the media, and have instead elected to focus on the fact that more trucking companies exist than could ever possibly receive freight shipments from established firms.
On the good side, it is said that market adjustments may correct the driver shortage. It is so, because the cash flow problems that have been a major issue for small truck companies, may have lead to closures, Florida’s Space Coast included—the current job market allows displaced drivers to take one of countless available positions, and it is likely that the trucking industry will stabilize as drivers continue to retire and older trucks replaced with any of the current models. For example, a greater percentage of freight moves by van, shipped to fulfill individual online customer orders by local delivery services. In other words, drivers who are no longer employed by any trucking service could transfer to one of these services and begin a new career in a growing industry.
Insurance wise— If your company operates one or more 18 wheeler trucks, at Melbourne Truck Insurance we can provide you with affordable truck drivers/operator coverage for most commercial truck and tractor trailer combinations. As a recognized leader in the local trucking insurance industry, our parent company Garzor Insurance specialized in serving “niche” or undeserved markets. Our proven, superior underwriting model creates the necessary flexibility to write unique coverage’s in a wide array of diverse industries, all present here in Florida’s Space Coast.
From small delivery vans to tractor-trailers, we offer coverage for a wide variety of business vehicles, including:
box trucks, semi-trucks, flatbed trucks, garbage trucks, pickup trucks, tank trucks, tractors, dump trucks , refrigerator and utility trucks, tow trucks, haulers and wreckers, car carriers, food trucks, catering trucks, lunch box trucks, shuttle vans, passengers van, taxi or limousines, non–emergency medical transportation and more.
Give us a call for a FREE consultation at (321) 329-5556 and one of our local truck insurance specialists at Melbourne Truck Insurance will be more than happy to walk you through all of your options.
Hector is a licensed insurance agent with vast experience as a Transportation Specialist.
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