We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Truckload driver turnover continued to slow in third quarter, ATA says
newsworthy

Truckload driver turnover continued to slow in third quarter, ATA says

December 9, 2016
DC Velocity Staff
No Comments

The driver turnover rate at large truckload fleets—those with more than $30 million in annual revenue—fell sequentially by two percentage points to 81 percent in the third quarter, the third straight quarterly decline of 2016 and the lowest level since the second quarter of 2011, the American Trucking Associations (ATA) said today.

The driver turnover rate at large truckload carriers has been steadily declining for the past year from levels that not long ago were matching or exceeding 100 percent, meaning that carriers had complete driver turnover in some years. The decline in the turnover rate reflects an increasing driver reluctance to jump carriers amid a general malaise in the freight economy, as well as a dramatic drop in shipping demand from companies in the shale oil business, which has been battered by a severe and protracted drop in oil prices since 2014.

The turnover rate at smaller truckload fleets rose one point to 80 percent, while turnover at less-than-truckload carriers fell three points to 9 percent, ATA said. LTL driver turnover is historically very low because those drivers are better paid than their truckload sisters and brethren, and the relatively short distances driven by LTL carriers allows for a better work-life balance because drivers can be home more often.

"Despite the falling turnover rate, carriers continue to report difficulty finding well-qualified drivers, a problem that will not only persist, but which will get worse as the freight economy improves," said Bob Costello, ATA's chief economist. Costello has been uncharacteristically gloomy throughout the year about the industry's near-term prospects, blaming elevated inventory levels throughout the supply chain, which have dampened new order activity, and freight demand.

That cycle may be ending, however. The "inventory-to-sales ratio" for manufacturers, wholesalers, and retailers has been in a stair-step decline after peaking at the start of the year. This indicates the supply chain is working down inventory levels to the point where orders may begin to pick up. The inventory-to-sales ratio is a measure of the number of months of inventory on hand relative to monthly sales.

In addition, the Institute for Supply Management's (ISM's) November report on manufacturing activity showed accelerating growth in new orders, a pattern that's been in place for three consecutive months. The ISM report found that supplier inventories were contracting, and that end user inventories were, in the group's words, "too low."

Costello said driver turnover rates may rebound in the months to come if the economy continues to gain traction.

Transportation Trucking Truckload Less-than-Truckload
KEYWORDS American Trucking Associations
  • Related Articles

    Driver turnover soars in second quarter for large, small truckload fleets, ATA says

    Truckload driver turnover slows to lowest level in five years, ATA says

    Truckload driver turnover jumps in third quarter as labor supply tightens

Recent Articles by DC Velocity Staff

U.S. Xpress makes “significant investment” in self-driving tech vendor

Truckload carrier predicts challenging year ahead for industry

Train kept a rollin’

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Biden names dozens of senior leaders to DOT, including FMCSA and FRA

  • Thriving in the long haul: interview with Colin Yankee

Now Playing on DCV-TV

2mw 01 18 21 thumb

LTL Carriers Using Yield Management Techniques to Identify New Accessorial Charges

DCV-TV 4: Viewer Contributed
As we head into 2021, shippers are not too optimistic about negotiating rates with their carriers. The reason for this, as highlighted in the three CODE RED Webcasts we've hosted with our friends from CSCMP and NASSTRAC, is that in today's transportation marketplace, shippers are operating in uncharted waters. With...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing