Sep 19, 2017 • Carriers

Truck Driver Turnover Rate Rapidly Increased

Truck Driver Turnover Rate Rapidly Increased

The truck driver turnover rate rapidly increased to its highest mark in the last seven years in the second quarter of 2017.

Truck Driver Turnover Rate

According to American Trucking Associations’ quarterly report, the turnover rate at large truckload carriers in the second quarter of 2017 jumped 16 percentage points to 90 percent – the highest it has been since the final quarter of 2015.

The 16-point increase is the largest quarterly jump in truck driver turnover rate since the fourth quarter of 2010.

“We saw double-digit gains in the annualized turnover rate for both small and large truckload fleets,” said ATA Chief Economist Bob Costello. “After a period of relatively low turnover, it appears the driver market is tightening again, which coupled with increased demand for freight movement, could rapidly exacerbate the driver shortage.”

The ATA report also revealed turnover numbers for smaller fleets. Smaller carrier companies with $30 million in annual revenue or less saw aneven higher turnover rate increase. For them, the turnover rate increased by 19 percentage points to 85 percent, the highest it has been since the first quarter of 2016.

The turnover picture at less-than-truckload fleets was more muddled, with over-the-road LTL turnover dipping one point to 9 percent, says the ATA.

“We predicted that last year’s period of relatively low and stable turnover could be short-lived if the freight economy recovered from 2016’s freight recession,” Costello said. “It appears those predictions were correct and we may be seeing the beginnings of a significant tightening of the driver market and acceleration of the driver shortage.”

Truck Tonnage Trending Up

Despite the high truck driver turnover rate and impeding driver shortage, Truck Tonnage Index jumped 7.1 percent in August and year-to-date, compared with the same eight months in 2016, the index is up 2.1 percent, says the ATA. Costello partially correlates the increases in August to Hurricanes Harvey and Irma.

The trucking industry is trending up still, with 2016 truck freight tonnage up 1 percent or 500 million tons from 2015.

If you’re a truck driver and are ready to make the jump to start your own trucking company, the timing might be right.

How to Start a Trucking Company

Tagstruck drivers Owner Operators

6 Tips to Keep Safe at Truck Stops <h2></h2> <h3></h3> You have finally arrived at your truck stop of choice (or found one using <a href="https://truckerpath.com/trucker-path-app/">Trucker Path</a>) and conveniently located a parking spot. Watch out as things might not be so safe as you think. A large percentage of truck-trailer accidents occur at truck stops which should be the safest place to park. Drivers can never let their guard down when behind the wheel and even parked at that! Trucking accidents are expensive and causes major setbacks in your schedule which leads to more expenses. Below are a few tips to help reduce a trucking accident/incident at a truck stop: <h2></h2> <strong>Here are 6 tips to keep safe at truck stops:</strong> <h2></h2> <strong>1. Pre-plan your route:</strong> Pre-plan your route so you know you will be stopping at a location with plenty of room and that is well lit. Choose your stops, don’t let them choose you. Use truck apps such as Trucker Path to efficiently plan your route and plot your desired stops. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b56.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b56-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5073" /></a> <h2></h2> <strong>2. Maximize your stops:</strong> Plan to take care of everything you need at a truck stop when you are there the first time. Stopping to fuel, refill your coffee, and eat is better than stopping five times. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b55.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b55-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5072" /></a> <h2></h2> <strong>3. Avoid parking at the end of a row:</strong> Not only is there traffic crossing next to you but most people park on the end because they are tired and after a long day the end is the closest spot. Avoiding the end of a parking lot helps you avoid drivers who are parking when they are tired. Removing yourself from high traffic areas can help reduce risk. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b54.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b54-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5071" /></a> <h2></h2> <strong>4. Avoid a spot that will force you to back out when you leave:</strong> Choose a spot you can either pull through (the best option) or back into (second best option). <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b53.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b53-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5070" /></a> <h2></h2> <strong>5. Park where there is space around you:</strong> The back of the lot will usually have more room than the front so let other drivers take the risk of all that traffic coming and going. No need to be a super Trucker when a safe and easy place is available. Think safe, not convenience.<h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b41.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b41-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5068" /></a> <h2></h2> <strong>6. Use your cameras:</strong> Don't be complacent when parking. When your space is tight, utilize what you have to your advantage. Using your cameras will help you see tight spots on sides and at the rear. Take your time and you can also step down to survey the surrounding areas. <h2></h2> <a href="https://truckerpath.com/uploads/2020/06/b40.jpeg"><img src="https://truckerpath.com/uploads/2020/06/b40-300x156.jpeg" alt="" width="300" height="156" class="alignleft size-medium wp-image-5067" /></a> <h2></h2> <h2></h2> <h4>By Aldous Aldwin</h4> <h3></h3> <h3></h3>

Jun 23, 2020 • Carriers

How to Kick-off your Trucking Career [p]If you like road trips and you get excited by the idea of earning money while living ‘life on the road’ then trucking is for you. Trucking is one of the biggest industries in the world and extremely important for the survival and efficient function of an economy. As such, trucking not only helps support the economy, but also helps build it. At the moment around <a href="https://markets.businessinsider.com/news/stocks/trucking-industry-facts-us-truckers-2019-5-1028248577#truck-drivers-earn-less-than-most-americans-in-terms-of-annual-income10">6% of all the jobs available in the U.S are in the trucking industry</a> with more than 7 million people working in the industry right now. The number is growing each year as dependency on trucking increases.[/p] [p]That sounds like an industry where the future is secure and employment guaranteed if you are good at the job. Sounds good right? It sure does but before you can get anywhere near a truck you need to fulfill some obligations like getting a license, choosing a trucking company, and more. Follow the steps below to get started with your stint as a truck driver. [/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/2-1.jpg" alt=""] [p][b]Make Up Your Mind [/b][/p] [p]It is extremely important to get yourself mentally ready before even thinking about getting a license. Trucking sounds exciting but the job is mentally and physically taxing. At times you are required to sleep at truck stops, in cheap motels, or inside your truck's cabin. There aren't many decent places to take a shower and you will eventually run into some dirty truck stops. You may also meet some rude people which will definitely test your patience. Most importantly, you are away from your family for lengthy periods. Therefore, never decide in haste. Sit down and think about it but once you make up your mind do not look back as only excitement and adventure come ahead.[/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/3.jpg" alt=""] [p][b]Apply for a CDL[/b][/p] [p]The first step on the road to becoming a truck driver is to get a commercial driving license (CDL). The CDL is divided into three main categories in North America: [/p] [img src="https://truckerpath.com/uploads/2020/09/cdl_types.jpeg" alt=""] <h2></h2> [p]If your goal is to become a big-rig driver then you need a Class A license. To get that you need to enter into a trucking school. This institute is much like a driving school except in a trucking school you are taught advanced methods of driving a large vehicle. There you will be required to practice and hone your skills both in the classroom and on the field. Generally, trucking school starts at $3,000 for a beginner program. You may avoid paying the whole cost of the trucking school by availing of some financial aid options. If you sign with a carrier before graduation, they may cover some of your educational expenses. Some schools in areas with trucker shortages may also offer scholarships to its students. You are eligible to apply for a Class A license once you have completed at least 160 hours or roughly 10 weeks of training. [/p] [p]Once you have that many hours under your belt simply go to a state-mandated testing facility, pass your test with flying colors and you are good to go. Afterward, you need to go to the licensing authority in your state where you will be required to show your identification, proof of state residency, your Social Security Number (SSN),and proof of passing the CDL exam. The training program for a CDL can last for 3 to 4 weeks so if you are motivated you can get started with your trucking career within a matter of months. [/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/4.jpg" alt=""] [p][b]Pick A Trucking Company[/b][/p] [p]The next step in your road to becoming a truck driver is choosing a good trucking company. There are many good local and national companies across America. That is a good thing because you have the power to choose and differentiate between various trucking companies. As such you should always look for renowned companies that have a good name in the industry. The last thing you want is to end up in a trucking company that is not financially stable and that doesn’t provide you with job perks. [/p] [p]A good company may provide you with health insurance, life insurance, paid vacation, sick leave pay, and more. So choose wisely but don’t waste too much time stalling![/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/5.jpg" alt=""] [p][b]Accept the First Good Job [/b][/p] [p]Most newcomers in the trucking industry waste time by waiting for the right opportunity, the “perfect route”. But that is not advisable. You are a fresh trucker who has just gotten his/her license. It is better to get some and any experience under your belt as soon as possible. Ultimately, the number of hours you spend driving will help you in the future to move up the ladder to better trucking companies. That can also lead to better job perks, better opportunities as a trucker, and a handsome salary. If you wait, a very good trucking contract may come your way but that is a rare possibility. By then, your peers would have moved further up the ladder on to greener pastures while you start late and experience the grit of a newcomer in a tough industry. [/p] <h2></h2> [p][b]Final Thoughts[/b][/p] [p]It is not very hard to get into the trucking business if you have the right mindset and you are motivated. Yes, you may face financial burdens in the beginning but seeing that the <a href="https://www.census.gov/library/stories/2019/06/america-keeps-on-trucking.html#:~:text=More%20than%203.5%20million%20people,occupations%20in%20the%20United%20States.">average trucker</a> makes $50,000 - $60,000 per year the initial burden might not feel a lot to bear. However, you would have to spend time away from family but in the end, all of this is worth the effort. The trucking industry is here to stay and you can make the most of it while having a grand adventure and enjoying the magnificent views in your big rig! [/p] <h2></h2> <h2></h2> [p][b]By Aldous Aldwin[/b][/p]

Sep 08, 2020 • Carriers

Factoring Costs - Comparing Factoring Rates [p] Freight factoring can be advantageous to your trucking company but there are some factoring costs that are misleading and comparing factoring rates as well as their offer details can help you maximize earnings. [/p] [h2] Factoring Costs [/h2] [p]There is more to the factoring cost than the factoring rate offered in<a href="https://truckerpath.com/blog/freight-factoring/"> freight factoring</a>. Freight factoring provides owner-operators an opportunity to better manage their cash flow and eliminate waiting to get paid. Factoring companies offer rates based on a variety of factors but there are several things you must understand when talking about the factoring cost.[/p] [p]Some require specific qualifications a client must meet to earn the best possible factoring rate. Others might require a specific volume of loads or long-term commitments (not quite 'til death do us part but nonetheless). Sometimes the lowest factoring rate won't provide you with the lowest cost to factor. [/p] [video id=IBCMtru_QMQ] [h2] Comparing Factoring Rates [/h2] [p]When comparing factoring rates a 1.5 percent factoring rate can cost more than 3.5 percent rate. Yes, you read that correctly. It's entirely possible that a lower factoring rate can actually cost you more. Let's say Factoring Company A who is offering a 1.5% rate and Factoring Company B is offering 3.5%. You're more inclined to factor invoices with Factoring Company A because the rate is better right?[/p] [p]While Factoring Company A's rate is lower, the overall cost to factor is not. This is due to fine print in Factoring Company A's contract where it included a variety of fees and commitments from you.[/p] [p]By breaking down the additional factoring fees and including them with the factoring rate we can compare the true factoring cost and decide which option is best for you. In this case, Company B would be the best freight factoring company for your trucking business. [/p] [img src="/uploads/2017/06/factoringrates.png" alt="My image"] [h2] Understanding the Differences When Comparing Factoring Rates [/h2] [p]Not all factoring rates are created equal. If you are interested in using a freight factoring company to help your cash flow, comparing factoring rates and determining the actual factoring cost can save you thousands. Some factoring companies aren't transparent and hope you won't see through some of their additional fees that lead to a higher factoring cost to you. [/p] [p]Remember to always read the <a href="https://truckerpath.com/blog/hidden-costs-to-factor/">fine print to avoid those hidden fees</a> in your factoring contract and understand the details that could lead to additional fees before committing to factor with a company. [/p] [p]Factoring companies like Trucker Path InstaPay offers non-recourse factoring with no commitment or fees. IntsaPay is completely transparent and you can easily get paid in a day by factoring right from your phone. It's perfect for owner-operators with a simple flat rate and no additional costs. [/p] [button text="MORE ABOUT INSTAPAY" href="https://truckerpath.com/sign-up-instapay/?utm_source=blog&utm_medium=ctacomparingratesJuly24" width="250px"]

Jul 25, 2017 • Carriers