General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCheap Prices Will Be the Latest Casualty of the Trucker Shortage
Americas trucker shortage is about to hit consumers right where it hurts: in the kitty litter.
McDonalds Corp.s long-time distributor Martin-Brower Co. is raising delivery fees, imperiling low menu prices, and Procter & Gamble Co., Church & Dwight Co. and Hasbro Inc. are sounding the alarm that higher freight fees could be passed on to consumers of everything from Crest toothpaste to Arm & Hammer cat litter to My Little Pony figurines. And its all because transport companies cant find drivers.
Millennials, they dont want to drive trucks, said Darren Tristano, CEO and founder of consultant Foodservice Results. Theyre looking at this and saying, I want to be in something more glamorous, more tech-oriented.
America simply doesnt have enough truck drivers to deliver everything its people buy. Thats not new, but many retailers are just now feeling the pain as annual shipping contracts are renewed. That has trucking companies scrambling to find ways to keep costs down. And it has Michael Norwich counting every dime and quarter as he contemplates the $4.99 combo meal whose price is dictated at Jack in the Box Inc. headquarters.
https://www.msn.com/en-us/money/markets/cheap-prices-will-be-the-latest-casualty-of-the-trucker-shortage/ar-BBUeMwC?li=BBnbfcN
Trumpy's going to have to pay more for his Big Mac.
Bernardo de La Paz
(48,988 posts)Forcing them to be independent contractors who have to carry all the risk, for example.
Slave-driving them so that they hardly see their families.
exboyfil
(17,862 posts)their own training to get certified. That is quite a barrier to entry.
Every freaking job is driven to the edge. I worry about my daughter's employer. We have two large healthcare companies in our area. My daughter's employer is actually pretty good. The other one is the type of company that drives everything down. I am afraid my daughter's company may adopt those strategies as well making for a much more dangerous work environment.
Bernardo de La Paz
(48,988 posts)Moostache
(9,895 posts)We are rapidly hurtling towards an inflection point in societal history.
We have no had a depression in nearly 90 years now....the pain of the 2008 financial crisis was bad, do not get me wrong, but it could have been exponentially worse. The crash of 1927 and Great Depression that followed would have seemed like the good old days had things turned fractionally different in '08...however, bailing out the bankers and financial institutions means the inevitable depression was not truly averted, only delayed. And when it does hit, it is going to hit with a force multiplier this time because governments around the world are not in position to backstop the entire economy.
What is going to collide? A future jobless economy, where there are a very tiny fraction of the population doing extremely well, a small group struggling to stay in the consumer economy a bit longer and a massive number of people whose jobs and industries are going to disappear...including paralegals, secretaries, long haul drivers, and anyone else who relies on labor and their body to earn a living. Only those who have a developed skill or trade (college education alone will not be sufficient by 2025, if it even is now). Plumbers, electricians, and the like will do OK, office managers and low level executives will get squeezed hard but lab techs and researchers, engineers and developers will remain viable.
Then all of this happens as two mammoth events in human history also collide - Climate Change going past 2 degrees total warming (and on its way to 4 degrees or more) and the retirement of the Baby Boom generation and their swamping of healthcare, geriatric care, retirement funds and the brain drain from the economy all come along for the ride. Just as we fall into a period of massive government debts and inability to increase funding, we will need money more than ever before to keep social safety nets from failing entirely. Just when we need experienced engineers and researchers to get us from now to tomorrow, they will be retired, and dead or gone.
The current path is one where we are all in a car, a madman is at the wheel, he is drinking and swerving and screaming at everything while paying zero attention to the potential consequences of such action. It is sad, it is dangerous, it is likely the death knell of society too.
It is gonna be real ugly, real soon and for a really long time afterwards too.
Hermit-The-Prog
(33,320 posts)Every job is susceptible to obsolescence. New construction can be done in assembly lines with robots and erected with robots. Repairs in modular construction can be done by replacing modules. Old buildings will take a little longer, but robots will be capable of doing repairs on existing structures, eventually. Remote, office-bound, human supervisors of robotic crews may be needed for a while.
The next decade will be bumpy if we do, in fact, try to halt global warming. The next century will be transformative, if we survive the next couple of decades.
Bernardo de La Paz
(48,988 posts)... one that the anti-socialist anti-communist anti-poor pro-tax-cut Trump-Republicon Party will hate.
... one that truly perceptive capitalists will embrace.
... one that is tried and tested and has (in smaller form) had big benefits for the US already.
I think what is needed is for society to guarantee a basic floor with the big three: Housing, health care, and a basic income for expenses.
EVERYWHERE THIS HAS BEEN TRIED IT HAS HAD POSITIVE EFFECTS: reduced policing needs, lower health costs, higher employment, fewer social problems. It saves money!
Hypocritical moralists and greedy people are blind to the fact (proven many times) that, when given the big three, people don't goof off and quit jobs and laze around. Quite the opposite. With a stable situation including less interruption due to health crises, people seek and find more jobs and work harder.
If the big three are taken care of for ALL residents in a nation, then capitalists would be much freer to introduce production and service systems that we can expect to lead to job losses and job transformations.
The nation can afford it. It truly can and the synergistic effects are wonderful. Look at the huge boom in the 1950s and 60s when massive GI housing, health care, and education expenditures were operative.
Pay attention capitalists! The alternatives all include social unrest in varying and greater degrees.
susanna
(5,231 posts)I knew about this decades ago when the auto industry started using temporary (cough/"bullshit" ) employees in salaried positions. We weren't temporary. I was at one automaker for 16 years as a temp with no bonuses, no pensions, and no co-pay from that huge corporation into SS or Medicare. (My agency paid it, but at a lower rate.)
We as a nation are now finding out what happens when you are past cutting fat, muscle, and are now working on splintering bones in the employment sector.
I suspect the 1% won't like what is on the other side.
on edit: weird emoji thing, needed an extra space near a paren mark
Corgigal
(9,291 posts)My son in law was a truck driver, and I thought they made a living wage. He was home 3 days every 2 weeks. It wasn't enough money. I never knew it was that low, and he worked for a major company. They want truckers to purchase their own trucks, but everyone doesn't want to be tied down to another mortgage payment.
So he's working another job but the trucking company would love him back. Sure, pay him much more.
SoCalNative
(4,613 posts)for most transport, and just have local, smaller trucks - not long haul - for deliveries.
gainesvillenole
(121 posts)We need to invest in our freight rail infrastructure and send as much freight as possible by rail. It would save massive amounts of fuel with an added bonus of clearing a lot of truck traffic off the interstate highways.
Bernardo de La Paz
(48,988 posts)When the 0.01 % squeeze the 47 % with the help of their corrupt RepubliCon-Trump Party politicians and unqualified ultra-conservative judges, this is the result.
It will get worse before it gets fixed. I'm hoping it gets fixed peacefully and democratically. It will undoubtedly take Democrats to do it.
brewens
(13,566 posts)the tougher regs screwed me. I was partly in denial and resisting any treatment of sleep apnea. I really should have right away said, hey, that sounds like me and what do we do about it? They probably would have had me set up with my CPAP machine and back out there in no time.
As it is now, bad knees, hips and shoulders have me disabled. I may be back working at some point. I'm minus 50 pounds now, with about another 50 to go. I doubt I'll be driving trucks again, my night vision isn't the greatest now either.
Doremus
(7,261 posts)Probably thinking the rules don't apply to them again.
Moostache
(9,895 posts)Their focus is NEVER on the long-run health and growth of their companies these days...and has not been for a generation plus. Now its all about meeting or beating the market's expectations.
A 10-year plan for sustainable growth, community responsibility (NOT externalizing costs via a plan to socialize risk and privatize gains), and long-range viability are NEVER even on the mind of a modern CEO. They are in it for a short run...2-3 years is a veteran, 4-5 at the same company is a dinosaur ripe to fall. Massive compensation flows to the top and is prevented from circulating in a healthy economy.
genxlib
(5,524 posts)I am actually really bearish on the idea that driverless cars are going to take over the road soon. I just think there are too many random variables on the roadway for an autonomous vehicle to function within everyday life anytime in the near future.
But trucks running defined routes that could be programmed for very specific roads doing point to point deliveries. That feels like something that current technology could manage.
I am really against the idea but there is nothing I can do about it. Driver shortages, even if they are artificially created by the working conditions, will just give them more excuses.
safeinOhio
(32,669 posts)No future in driving anything.
theophilus
(3,750 posts)Obviously the long haul trucks might be replaced by rail. There would need to be short haul trucks to distribute the product in the cities, etc. I wish that electric rail could be used instead of so many death spewing trucks.
A HERETIC I AM
(24,365 posts)I can say with some authority that one of the main reasons the industry is not attracting younger people is pay, it's that simple. Couplw that with the long time away from home, sleeping in cramped quarters and having to walk across a parking lot in all weather to get a shower and you have a situation that many would find distasteful.
When I first started OTR in 1987, the going rate for an experienced driver was twenty five cents a mile. Put that into an inflation adjustment calculator to today and you get $.55. There are damned few companies out there starting drivers at $.55, but even if they all were, it means the drivers in this industry have not gotten a raise outside inflation for 30 years.
Many companies have altered routing to more regional work, allowing drivers more frequent home time. Meeting another driver coming from the other direction at a halfway point and swapping trailers is becoming more common. UPS has been doing this sort of thing for years, allowing a drivers to go out 300 miles, swap trailers and head home and do so all in the legal 10 or (now) 11 hour driving time framework. This is a good thing, but it is still a relatively small percentage of trips.
Also, in spite of some opinions stated above, Owner Operators make up only about 10% or so of the total number of long haul drivers. That trend is upward slightly, but the percentage of the total has been fairly flat over the last few decades. While it is true that some large fleets made a push toward OO's in their fleets (JB Hunt is an example) it is not a major, industry wide trend. There are still plenty of "Company driver" only firms out there and there always have been firms that employ both OO's and company drivers.
Another major issue the way I see it is the overwhelming prevalence of paying by the mile. This is essentially "piecemeal" wages. The longer and harder you work, the more you make. Before the advent of electronic logging devices, this led to drivers cheating on their logbooks in order to disguise actual hours of service. Many drivers gave up the industry when the ELD's came into being because...well...basically cause they couldn't cheat anymore.
The solution is to go to an hourly rate of pay, system wide. It's easy to do and if a driver is sitting still in traffic he would still get paid, unlike the current system where most drivers don't make a cent waiting for an accident to clear, for instance.
The industry has two choices; Raise driver pay to attract more young people into the business or go full autonomous, and the latter isn't likely to happen for quite a while.
As far as moving more freight to rail, for the most part, all the freight that makes the most economic sense to ship by rail, already is. Trains are most efficient when they are moving a large quantity of the same thing from point A to a point B a long way away. Think coal or grains or containers and piggyback trailers. They aren't stopping every hundred miles and off loading trailers or dropping railcars.
To demonstrate how much faster a truck is compared to a train, if I picked up a container in Oakland right after it was offloaded from a ship, I could be in Wendover before the train it would be loaded on got to Reno. If I was running a team, I could be in Chicago in 35 hours. The train would take 3 days. Even running solo I can beat the train by 24 hours.
Prices have to go up, there is no doubt. But how much of that will actually go into the pocket of the drivers remains a question. The job should pay $70,000 a year MINIMUM.
We shall see what happens in the coming years.
Bernardo de La Paz
(48,988 posts)MichMan
(11,905 posts)" Millennials, they dont want to drive trucks, said Darren Tristano, CEO and founder of consultant Foodservice Results. Theyre looking at this and saying, I want to be in something more glamorous, more tech-oriented.
TexasBushwhacker
(20,169 posts)Not every millenial is into tech, but plenty would be happy to do an unglamorous job like truck driving if the pay and benefits were right.
WhiskeyGrinder
(22,318 posts)Why blame yourself or your business model when you can blame a whole generation?
bluecollar2
(3,622 posts)When the industry was deregulated.
Drivers brought it on themselves.