We promise, we’re not trying to sound like a broken record but…we’ve got a labor shortage on our hands, and it’s a doozy. And while the shortage is impacting a variety of industries, like manufacturing, hospitality, and warehousing, the freight industry has been hit just as hard. We are at a point where offering higher pay and better benefits just isn’t cutting it, it’s time for real change. As the world continues to grapple with these shortages, we want to take a minute to reflect on the direct link between addressing the labor shortage and improving sustainability measures, and how both are the key to helping retain drivers and completely change how freight operates as a whole.
Why are we losing truck drivers?
There are a variety of reasons why truck drivers are leaving the labor force. And while some reasons are beyond our control, like an aging workforce, the others are well within our power to change.
Lifestyle: Many truck drivers, especially those in long-haul trucking, find it difficult to maintain a rich life while committing to their jobs. Long hours and unpredictable schedules, compounded by exhaustion make it hard to maintain the job or any personal relationships for the long run.
Frustration: Working conditions aren’t ideal; long hours, poor road conditions, traffic, accidents, and a deep-seated lack of respect towards truck drivers leads to undesirable working conditions. More and more truck drivers are finding they’re better off leaving the industry and trying something new.
Fear: As technology becomes more advanced, the fear of autonomous vehicles taking over has become ever-present. Truck drivers believe they're about to be replaced, so why bother staying loyal to an industry that has shown them no love? With no future in sight, the anxiety of being replaced is very real.
Compensation: Drivers’ wages are being impacted by the ELD mandate, as it regulates the number of hours drivers are allowed on the road. Drivers are usually paid by the mile, which makes it difficult for drivers to follow the Hours of Service rules and make a fair and decent wage.
With truck drivers becoming harder and harder to retain, hiring new ones is just as hard, and likely, not really the answer. As CEO and founder at Overhaul Group shared on Inbound Logistics, “Expanding your headcount could certainly help you meet demand and grow, but you can likely find opportunities to save your drivers time and use technology that allows supply chain professionals to focus on more strategic tasks.” We believe it’s time to better utilize the resources and assets we already have, not only to address the labor shortage, but to become more sustainable as we do so.
How SemiCab addresses sustainability
As we’ve determined, hiring more drivers won’t really solve the issue, and it’s becoming harder and harder anyway. So you want to do what you can to retain the talent you currently have. How can SemiCab’s Collaborative Transportation Platform do that?
Offering your drivers predictable income they can rely on is a great place to start. Carriers on the SemiCab platform agree to haul shipments consistently in the same geography, at a fixed rate, for a predetermined amount of time. By dedicating capacity to SemiCab, our proprietary Orchestrated Collaboration™ approach finds the best loads and opportunities for all carriers and shippers on the platform. And since SemiCab aggregates demand and supply optimally, we ensure our carriers generate predictable revenues at healthy profit margins every week of the year; profits that help you pay the truck drivers, who make it all happen, better. When drivers have access to reliable income and predictable schedules, they’re more likely to stay on for the long-haul.
Carriers can rest assured knowing that the trucks they dedicate to SemiCab will be bringing in a consistent amount of revenue, every week. No spot market searches, no load board inefficiencies, no loss of revenue, no overworked and underpaid drivers.
We believe that using technology won’t only help address the talent shortage, it will help with sustainability goals too. According to the 2021 Gartner® Report: Apply Technology to Reduce Greenhouse Gas Emissions in Logistics, “Implementing sustainable practices also benefits transportation companies and their customers, as many green strategies also reduce costs long term, such as fuel tax, maintenance, fuel expenses and labor.” Yet another reason why the time to stop talking about sustainability and start doing something is here.
For more details on Gartner recommendations for technologies that can help with sustainability measures, download a complimentary copy of The Gartner Apply Technology to Reduce Greenhouse Gas Emissions in Logistics report now.
Gartner, Apply Technology to Reduce Greenhouse Gas Emissions in Logistics, Bart De Muynck, 3 June 2021.
Gartner is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request here.
Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.