Most carriers expect driver wage increases, TCP survey indicates

July 19, 2011
Two-thirds of carriers expect driver wage increases of 1% to 5% in the recent Second Quarter Business Expectations Survey by Transport Capital Partners LLC (TCP).

Two-thirds of carriers expect driver wage increases of 1% to 5% in the recent Second Quarter Business Expectations Survey by Transport Capital Partners LLC (TCP). This is about the same as the first quarter’s survey.

“The responses were skewed to a higher level, with 28% saying rates would increase more than 5% this quarter compared to only 12% expected over 5% in the prior quarter,” said Richard Mikes, TCP partner and survey founder.

“Seven percent anticipate wage rates would remain unchanged, as the reality of parked trucks without drivers became more commonplace. This will contribute to rate pressures, as well,” said Lana Batts, TCP partner.

A higher share of larger carriers (more than $25 million in revenue) reported expectations of increases beyond 5% compared with smaller carriers, 30% to 22%.

Mikes said, “The larger carriers apparently are feeling the pressure first as the driver pendulum is swinging to the more typical levels of this phase of the supply demand cycle, and truck capacity is tightening both because of lack of equipment as well as no new drivers.”

A follow-up question asked how high driver wages must be before the industry can attract and retain drivers with 73% forecasting required wages in ranges of $50,000 to $70,000. Batts and Mikes both noted that the industry reports of a mounting driver shortage can no longer be left out of the industry capacity and underlying cost structure discussions on potential rates in the months and years ahead.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...