{"id":30286,"date":"2023-06-15T00:00:00","date_gmt":"2023-06-15T00:00:00","guid":{"rendered":"http:\/\/test.tranistics.com\/nvision\/2023\/06\/15\/how-driver-shortages-are-impacting-supply-chain-costs\/"},"modified":"2026-02-02T07:23:41","modified_gmt":"2026-02-02T07:23:41","slug":"how-driver-shortages-are-impacting-supply-chain-costs","status":"publish","type":"post","link":"http:\/\/test.tranistics.com\/nvision\/2023\/06\/15\/how-driver-shortages-are-impacting-supply-chain-costs\/","title":{"rendered":"How Driver Shortages Are Impacting Supply Chain Costs"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1248px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\" style=\"--awb-text-transform:none;\"><p>Worker shortages are plaguing numerous industries in 2023, but few are being hit as hard as the freight transport industry. To say there\u2019s a shortage of truck drivers is an understatement. From long-haul, over-the-road (OTR) trucking to local delivery, the lack of available drivers is having a significant impact on freight operations and costs.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-30997\" src=\"http:\/\/test.tranistics.com\/nvision\/wp-content\/uploads\/2023\/06\/shutterstock_220550116-min-1.jpg\" alt=\"\" width=\"800\" height=\"440\" \/><\/p>\n<p>Carriers are struggling to find drivers even for regular routes, which has created headaches across the chain of custody. While attempts are being made to address the problem \u2014 through off-peak shipping and consolidated loads \u2014 there\u2019s still a long way to go in solving the freight industry\u2019s biggest immediate challenge.<\/p>\n<h2>A closer look at the driver shortage<\/h2>\n<p>The ongoing shortage of truck drivers has been negatively affecting supply chain costs for years. In 2019, the American Trucking Associations (ATA) reported a record-high shortage of <a href=\"https:\/\/www.trucking.org\/sites\/default\/files\/2020-01\/ATAs%20Driver%20Shortage%20Report%202019%20with%20cover.pdf\" target=\"_blank\" rel=\"noopener\">61,000 unfilled truck driver positions<\/a>. As of 2021, this figure <a href=\"https:\/\/www.nytimes.com\/2021\/11\/09\/us\/politics\/trucker-shortage-supply-chain.html\" target=\"_blank\" rel=\"noopener\">was closer to 80,000<\/a> according to a New York Times expos\u00e9. It\u2019s expected to nearly double by 2030, barring an influx of new drivers behind the wheel.<\/p>\n<p>What\u2019s particularly troublesome about this shortage is it\u2019s not limited to a specific industry sector. It affects all areas of trucking, including OTR, local, less-than-truckload (LTL), intermodal, and others. This means it impacts virtually all areas of the supply chain, regardless of where freight originates.<\/p>\n<p>As driver shortages persist and grow worse, more stress and strain are put on carriers. Some carriers are being forced to turn down new business due to a lack of drivers, while others have been compelled to consolidate or merge to pool resources. These moves not only raise supply chain costs but also have <a href=\"https:\/\/www.forbes.com\/sites\/jackkelly\/2022\/01\/12\/there-is-a-massive-trucker-shortage-causing-supply-chain-disruptions-and-high-inflation\/\" target=\"_blank\" rel=\"noopener\">downstream economic impacts<\/a>.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-21989\" src=\"https:\/\/corporate.nvisionglobal.com\/wp-content\/uploads\/2023\/06\/shutterstock_528660739.jpg\" alt=\"\" width=\"600\" height=\"400\" \/><\/p>\n<h2>Factors contributing to driver shortages<\/h2>\n<p>As driver shortages continue, many are wondering why a job with a relatively low barrier to entry is experiencing so much turmoil. The reasons are varied:<\/p>\n<ul>\n<li><strong>Demographic changes and an aging workforce<\/strong>: <a href=\"https:\/\/www.allthingssupplychain.com\/the-truck-driver-shortage-is-fueling-supply-chain-chaos-what-can-be-done-to-solve-it\/\" target=\"_blank\" rel=\"noopener\">The average age of U.S. truckers<\/a> is nearing 50, and there simply aren\u2019t enough younger drivers to replace those who retire. The profession also skews heavily male \u2014 only 6.6% of truckers are women.<\/li>\n<li><strong>Wages and nontraditional working conditions<\/strong>: Drivers aren\u2019t always compensated for the time they spend waiting for shipments or being stuck in traffic. Additionally, long hours and time away from home can make the job unappealing to younger workers.<\/li>\n<li><strong>Regulatory and safety compliance requirements<\/strong>: Hours-of-service rules and drug-testing regulations can make it difficult for carriers to find qualified drivers who meet all the requirements, worsening the driver shortage.<\/li>\n<li><strong>Technological advancements in transportation<\/strong>: Autonomous trucks are still in the early stages, and it\u2019s unclear when they will become widely adopted. In the meantime, the trucking industry is still reliant on human drivers.<\/li>\n<\/ul>\n<h2>Effects of driver shortages on supply chain costs<\/h2>\n<p>The ongoing driver shortage is having a considerable impact on supply chain costs and will keep exacerbating economic stress until it\u2019s resolved. Currently, carriers are forced to increase wages and offer other incentives to attract and retain drivers, resulting in higher transportation costs for shippers. Conversely, when there aren\u2019t enough drivers to transport goods, shipments may be delayed or even canceled, causing inventory to sit in warehouses or on trucks in disparate locations. And when the inevitable rush to get those goods to a location occurs, there\u2019s an increased risk of damage or loss, leading to more costs.<\/p>\n<p>There\u2019s no instant fix for staffing truckers. While some carriers may have success with sign-on bonuses or incentivized schedules, retaining a fleet of drivers ready to respond to crushing demand is proving difficult. Getting freight on the road and en route to its destination takes a concerted approach to ensure drivers get the support they need from dock to dock.<\/p>\n<p>Struggling to move freight due to driver shortages? Let nVision Global help you identify opportunities using analytics and input data. From channel evaluation to carrier vetting, we\u2019re committed to helping customers optimize their freight operations \u2014 even in an environment where moving freight is a challenge. Learn more at <a href=\"https:\/\/corporate.nvisionglobal.com\/\" target=\"_blank\" rel=\"noopener\">corporate.nvisionglobal.com.<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":30997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-30286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain"],"_links":{"self":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts\/30286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/comments?post=30286"}],"version-history":[{"count":0,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts\/30286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/media\/30997"}],"wp:attachment":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/media?parent=30286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/categories?post=30286"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/tags?post=30286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}