Everyone in the trucking industry has heard of the driver shortage. The ATA predicts the shortage will grow by roughly 90,000 drivers a year. Translation: it’s a great time to be a truck driving entrepreneur.
Truck drivers move approximately 70% of all America’s goods, and freight volumes are on the rise. As a result, shippers are looking for more and more truck drivers to haul their freight. The rate market is becoming more competitive and retailers are willing to pay higher prices for on-time delivery.
ELDs are also helping drive up freight rates. Paper logbook flexibility may have helped carriers undercut competition, but it also helped shippers keep their rates low. Now, shippers cannot coerce carriers into driving outside the Hours of Service, which is forcing them to pay carriers more fairly for their work.
When freight rates are high, it is easier to find appealing loads to cover your operating costs. According to NPR, 2018 will only have 1 truck available for every 12 loads. Carriers have the opportunity to cherry-pick the loads that are best for their business.
Even with high rates, carriers still may not get paid what they deserve. Newer carriers earn on average 22% less than experienced carriers. Using a dispatcher can be a great option because they have the data, network, and experience to navigate the freight market and avoid rate scams. Get the rates your company is worth.