Large U.S. Truckload Turnover Hits High, LTL Fleets See Low

Large U.S. Truckload Turnover Hits High, LTL Fleets See Low
Posted: Oct 7, 2013 12:26 PM | Last Updated: Oct 7, 2013 12:26 PM

ARLINGTON, VA. — Annualized turnover rate at large U.S. truckload fleets climbed two points to 99 percent in the second quarter of 2013, the American Trucking Associations (ATA) reported.

The increase pushed the rate to its highest point since Q312, and just above the annual rate of 98 percent in 2012, ATA noted.

The ongoing turnover shows that the market for qualified, experienced drivers is extremely tight, said Bob Costello, ATA's chief economist.

“The continued improvement in the freight economy, coupled with regulatory challenges from the changing hours-of-service rule and CSA will only serve to put a further squeeze on the market for drivers.

“A tight market for drivers will push costs higher for fleets as they work to recruit or retain quality drivers,” Costello said.

Meanwhile, turnover at truckload fleets with less than $30 million in annual revenue held steady at 82 percent while turnover at less-than-truckload fleets dropped nine percentage points to 6 percent — the lowest level in two years, said ATA.

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Choosing a Truck Driving Job Part V - Comparing Large Trucking Companies to Small Ones

In part one of our series, Choosing A Truck Driving Job Part I: Factors That Effect All Companies, we talked about different factors and considerations which will affect your experience at any company you go to work for.

In part two of our series, "Choosing A Truck Driving Job Part II: You and "Your People" Are The Most Important Factor", we talked about surrounding yourself with the right people, understanding factors that affect the freight you'll be getting, and things you can do to put yourself in the best position to succeed.

In part three, "Choosing A Truck Driving Job Part III: How Your Family and Lifestyle Will Affect Your Choice", we considered your personality and lifestyle. Are you married? Do you have children? Do you love adventure? How long would you like to be away from home? These questions all figure into the process of choosing the right truck driving job.

In part 4, "Choosing A Truck Driving Job Part IV: Advantages of Large Trucking Companies", we of course talked about the advantages of working at a large trucking company.

Now in part 5, we're going to talk about some of the disadvantages to working for a large trucking company, and discuss what life is like at a small company.

Ok, so large trucking companies must have some disadvantages, right? Of course they do. At a large company you are simply a number, not a name. You hopefully will get to know a few people working in the offices like your dispatcher, his or her boss, and maybe one or two middle managers like a terminal manager or operations manager. If you get to know that many people... and by get to know I mean they actually recognize you by name or truck number, you've probably done either an excellent job or a terrible job over a period of many months, or maybe even a couple of years. It's tough to stand out when there are thousands of drivers at one company. So if you like that personal attention and family-type atmosphere, a large company is not going to provide that for you.

Because of this, you will find it very difficult to get any special consideration for anything. Doing a great job for a couple of years is going to get you an automated thank you letter and maybe a patch for the company jacket you had to buy from your own company store when you wanted one. On the other end of things, you may find yourself in a unique situation, and nobody will take the time to understand your side of things. They don't have the time, and frankly many of them don't really care. I'm going to go deeper into this subject in a moment with a few stories related to this theme.

Smaller companies, in my opinion, don't have too many advantages over the larger ones from a driver's perspective. You will definitely get to know everyone in the office, and they will certainly know you. Often times if you live nearby your main office, the people in your company will even get to know your family and the families of the other employees. This family atmosphere is nice in a way, but you also have to be aware of a couple things.

For one, just like in any tight group of people, everyone tends to know everyone else's business. Maybe you don't want everyone at work knowing about an operation you're going to have, or the tough times you're having with your marriage, or the trouble your kid got into at school. Maybe you got a well deserved raise, but now the other drivers are envious and raising a fuss. Or maybe your excellent performance is being rewarded with more miles and a nicer truck, which again causes problems with the other drivers. As you can probably tell I've been in these type of situations before and I'm not really too fond of them. Having co-workers as close friends is not always an easy thing to maintain, especially if there is any type of competition between employees when it comes to pay, equipment, or freight.

The other concern with regard to company size is how much your company will count on you. At a large company, if you'd like to take some time off, nobody really cares. I've taken MONTHS off at times and simply been told, "Ok, just turn your truck in to the terminal and let us know when you're ready to return and we'll get ya goin again." But at a really small company that's not likely to happen. You may be one of ten drivers in the whole company, so if you take time off, they just lost 10% of their fleet! The smaller companies rely on you much more so than a big company does, so you don't have nearly as much flexibility.

One time I worked for a small company pulling food-grade tankers. There were only eleven drivers in the company. I ran really hard for them and before too long, they came to expect a bit too much from me. Things got to the point that I was running an average of about 4500 miles per week. That's a ton! As time went on, the owner of the company expected more and more of me. It was getting ridiculous. Finally I stayed out on the road for almost six straight weeks, averaged about 4500 miles per week (totally illegal - you can't log that many miles legally), and when I returned home he booked a load for me to haul two days later. Six weeks on the road, two days at home, and I have to leave again? I don't think so. Well, he told me I could either run the load or be fired. I had been there a year, and I had a perfect safety and service record. I was also second amongst the drivers in average miles driven per week, but I guess that wasn't good enough. Turns out the owner was in serious financial trouble and I found out the company closed just a couple of months later.

So it turns out that he was desperate to get all the money coming in that he could get to save the company. But he had a good thing going with me and ruined it. Not only that, but he put on my DAC report that I abandoned his truck, which was not true at all! But since he went out of business, he couldn't respond to my claim that he falsified the report, so I didn't have any trouble moving on to the next job. A little advice - don't make the mistake of running that hard. Don't run so hard that you'll damage you mind, your body, or your license. Think long-term and make smart choices. I was really young at the time, was making a lot of money running that hard, and wanted to push myself to see what I could do. Well, what I did was make myself sick. I wore myself down, got burned out, and spent about 3 days in bed with some sort of flu/cold/whatever virus at one point. Remember, long term success means planning for the long term and making smart decisions all the time, not just some of the time.

So just be aware of the fact that small trucking companies will count on you far more than large companies will. There will be advantages and disadvantages to any company you work for. Keep in mind that It's always somewhat of a compromise when you're choosing where you'd like to work. It's just a matter of finding what works best for you.

In part 6 of this series we're going to discuss a couple of different types of truck driving jobs - dry van and refrigerated carriers!

About The Author

Brett R Aquila
15 Year Truck Driving Veteran
Owner - http://www.truckingtruth.com - the largest, most honest, and informative site on the web for those considering becoming a truck driver. We have tons of resources on our site, including:

Trucking Articles Trucking Driving Blogs From Many Different Authors Truck Driving Schools Free Truck Driving Schools Truck Driver's Forum Truck Driving Jobs Companies With CDL Training Advice, Tips, and Stories And Much More!

You can even make money with your own blog on TruckingTruth! We have several authors and are always looking for many more! So if you're considering becoming a truck driver, TruckingTruth is the place to go. You will not be disappointed!

Choosing a Truck Driving Job Part IV - Advantages of Large Trucking Companies

In part one of our series, Choosing A Truck Driving Job Part I: Factors That Effect All Companies, we talked about different factors and considerations which will affect your experience at any company you go to work for.

In part two of our series, we talked about surrounding yourself with the right people, understanding factors that affect the freight you'll be getting, and things you can do to put yourself in the best position to succeed.

In part three of our series we considered your personality and lifestyle. Are you married? Do you have children? Do you love adventure and traveling across the country? How long would you like to be away from home?

The next big consideration will be the size of the company you choose to work for. I have worked for companies with over 5,000 trucks and for companies with as few as eleven. It's a huge cultural difference. In part four we're going to discuss the advantages of working at one of the larger trucking companies. In part 5 we'll cover the disadvantages of working at a larger company, along with the advantages and disadvantages of working at a small trucking company.

The larger companies have a huge amount of resources available. They have tons and tons of different types of freight and driving opportunities. They often have local jobs, dedicated jobs - where you remain with one customer or run one route all the time, regional jobs, and over the road. Some of them have different types of trucks in their fleets, including dry van, reefer, tanker, and flatbeds. They have a lot more flexibility when it comes to home time, and they will generally allow you to move freely between different divisions within the company when you feel an opportunity presents itself.

Larger companies also have accounts set up with customers, lumpers, repair shops, towing companies, motels, bus companies, and truck stops. These accounts generally allow you to walk in the door, tell them who you work for, and get what you need taken care of without doing a thing. Repairs, towing, showering, getting bus tickets when needed, and picking up or delivering freight becomes much faster and easier under this system. To me, this was always a really big deal!

Big trucking companies also have a large pool of equipment to use. A variety of tractors to choose from and a huge number of additional trailers available make life much nicer for the driver. With the extra trailers you get to do a lot of "drop and hooks" where you pull into the customer, drop your trailer, grab a different trailer, and leave. You don't have to wait around to be loaded or unloaded. This is really huge because most jobs pay by the mile. so the time you spend sitting around waiting to load or unload is unpaid, wasted time. You want to keep rolling as much as possible, and drop and hooks can help you make a lot more money in a lot less time. Drop and hooks also give you more flexibility as far as when you make your pickups and deliveries.

Many customers who offer drop and hook pickups and deliveries will give you a deadline to pickup or deliver, but generally you can get there as early as you like. Many times they are even open 24 hours a day, seven days a week. So if you have to pick up a load that's sitting in a trailer in downtown Chicago, you don't have to try to push through rush hour traffic to arrive at a certain time. You can go in late at night or real early in the morning when traffic is light. Or maybe at times you would be able to get there way ahead of schedule, but you would really love to take a nap for an hour or two, or sit down for a nice meal first. Well, go for it! As long as you arrive ahead of the deadline everyone is happy. Believe me, you're gonna love having this kind of flexibility. It's wonderful when you're just exhausted and you find out your next load is a drop and hook that can pickup anytime. "Oh, thank God!", you're thinking as you pull over, jump into the sleeper, and crash out for a couple of hours!

To continue with this theme, larger companies tend to have a long list of perks. I've worked for companies that had things like free family counseling, large plush driver facilities, arcades, big screen TVs, restaurants, free 24 hour medical phone lines where you can call and talk to nurses confidentially about any medical questions you might have, discounts on travel accommodations, top of the line health insurance, 401k and direct deposit, free high speed wireless networks, shower facilities, marriage counseling, and on and on and on. I must say, at times it crosses your mind that maybe it would be better if they would just pay you a little more instead, but you know how that goes. The perks really are unbelievable though, and incredibly nice at times.

So as you can see, there are a ton of advantages to working at a large company. But these big trucking companies do have their disadvantages for sure. In part 5 of this series we're going to talk about the disadvantages of working at a large company, as well as the advantages and disadvantages of the smaller companies. Until then, take care!

About The Author

Brett R Aquila
15 Year Truck Driving Veteran
Owner - http://www.truckingtruth.com - the largest, most honest, and informative site on the web for those considering becoming a truck driver. We have tons of resources on our site, including:

Trucking Articles Trucking Driving Blogs From Many Different Authors Truck Driving Schools Free Truck Driving Schools Truck Driver's Forum Truck Driving Jobs Companies With CDL Training Advice, Tips, and Stories And Much More!

You can even make money with your own blog on TruckingTruth! We have several authors and are always looking for many more! So if you're considering becoming a truck driver, TruckingTruth is the place to go. You will not be disappointed!

Choosing a Truck Driving Job Part V - Comparing Large Trucking Companies to Small Ones

In part one of our series, Choosing A Truck Driving Job Part I: Factors That Effect All Companies, we talked about different factors and considerations which will affect your experience at any company you go to work for.

In part two of our series, "Choosing A Truck Driving Job Part II: You and "Your People" Are The Most Important Factor", we talked about surrounding yourself with the right people, understanding factors that affect the freight you'll be getting, and things you can do to put yourself in the best position to succeed.

In part three, "Choosing A Truck Driving Job Part III: How Your Family and Lifestyle Will Affect Your Choice", we considered your personality and lifestyle. Are you married? Do you have children? Do you love adventure? How long would you like to be away from home? These questions all figure into the process of choosing the right truck driving job.

In part 4, "Choosing A Truck Driving Job Part IV: Advantages of Large Trucking Companies", we of course talked about the advantages of working at a large trucking company.

Now in part 5, we're going to talk about some of the disadvantages to working for a large trucking company, and discuss what life is like at a small company.

Ok, so large trucking companies must have some disadvantages, right? Of course they do. At a large company you are simply a number, not a name. You hopefully will get to know a few people working in the offices like your dispatcher, his or her boss, and maybe one or two middle managers like a terminal manager or operations manager. If you get to know that many people... and by get to know I mean they actually recognize you by name or truck number, you've probably done either an excellent job or a terrible job over a period of many months, or maybe even a couple of years. It's tough to stand out when there are thousands of drivers at one company. So if you like that personal attention and family-type atmosphere, a large company is not going to provide that for you.

Because of this, you will find it very difficult to get any special consideration for anything. Doing a great job for a couple of years is going to get you an automated thank you letter and maybe a patch for the company jacket you had to buy from your own company store when you wanted one. On the other end of things, you may find yourself in a unique situation, and nobody will take the time to understand your side of things. They don't have the time, and frankly many of them don't really care. I'm going to go deeper into this subject in a moment with a few stories related to this theme.

Smaller companies, in my opinion, don't have too many advantages over the larger ones from a driver's perspective. You will definitely get to know everyone in the office, and they will certainly know you. Often times if you live nearby your main office, the people in your company will even get to know your family and the families of the other employees. This family atmosphere is nice in a way, but you also have to be aware of a couple things.

For one, just like in any tight group of people, everyone tends to know everyone else's business. Maybe you don't want everyone at work knowing about an operation you're going to have, or the tough times you're having with your marriage, or the trouble your kid got into at school. Maybe you got a well deserved raise, but now the other drivers are envious and raising a fuss. Or maybe your excellent performance is being rewarded with more miles and a nicer truck, which again causes problems with the other drivers. As you can probably tell I've been in these type of situations before and I'm not really too fond of them. Having co-workers as close friends is not always an easy thing to maintain, especially if there is any type of competition between employees when it comes to pay, equipment, or freight.

The other concern with regard to company size is how much your company will count on you. At a large company, if you'd like to take some time off, nobody really cares. I've taken MONTHS off at times and simply been told, "Ok, just turn your truck in to the terminal and let us know when you're ready to return and we'll get ya goin again." But at a really small company that's not likely to happen. You may be one of ten drivers in the whole company, so if you take time off, they just lost 10% of their fleet! The smaller companies rely on you much more so than a big company does, so you don't have nearly as much flexibility.

One time I worked for a small company pulling food-grade tankers. There were only eleven drivers in the company. I ran really hard for them and before too long, they came to expect a bit too much from me. Things got to the point that I was running an average of about 4500 miles per week. That's a ton! As time went on, the owner of the company expected more and more of me. It was getting ridiculous. Finally I stayed out on the road for almost six straight weeks, averaged about 4500 miles per week (totally illegal - you can't log that many miles legally), and when I returned home he booked a load for me to haul two days later. Six weeks on the road, two days at home, and I have to leave again? I don't think so. Well, he told me I could either run the load or be fired. I had been there a year, and I had a perfect safety and service record. I was also second amongst the drivers in average miles driven per week, but I guess that wasn't good enough. Turns out the owner was in serious financial trouble and I found out the company closed just a couple of months later.

So it turns out that he was desperate to get all the money coming in that he could get to save the company. But he had a good thing going with me and ruined it. Not only that, but he put on my DAC report that I abandoned his truck, which was not true at all! But since he went out of business, he couldn't respond to my claim that he falsified the report, so I didn't have any trouble moving on to the next job. A little advice - don't make the mistake of running that hard. Don't run so hard that you'll damage you mind, your body, or your license. Think long-term and make smart choices. I was really young at the time, was making a lot of money running that hard, and wanted to push myself to see what I could do. Well, what I did was make myself sick. I wore myself down, got burned out, and spent about 3 days in bed with some sort of flu/cold/whatever virus at one point. Remember, long term success means planning for the long term and making smart decisions all the time, not just some of the time.

So just be aware of the fact that small trucking companies will count on you far more than large companies will. There will be advantages and disadvantages to any company you work for. Keep in mind that It's always somewhat of a compromise when you're choosing where you'd like to work. It's just a matter of finding what works best for you.

In part 6 of this series we're going to discuss a couple of different types of truck driving jobs - dry van and refrigerated carriers!

About The Author

Brett R Aquila
15 Year Truck Driving Veteran
Owner - http://www.truckingtruth.com - the largest, most honest, and informative site on the web for those considering becoming a truck driver. We have tons of resources on our site, including:

Trucking Articles Trucking Driving Blogs From Many Different Authors Truck Driving Schools Free Truck Driving Schools Truck Driver's Forum Truck Driving Jobs Companies With CDL Training Advice, Tips, and Stories And Much More!

You can even make money with your own blog on TruckingTruth! We have several authors and are always looking for many more! So if you're considering becoming a truck driver, TruckingTruth is the place to go. You will not be disappointed!