Frank Lizzo is a director at HANCOCK Consulting and a Supply Chain Professional with extensive industry and consulting expertise in purchasing, logistics, and operational improvements.
How to make it work.
Over the past year, carriers and shippers nationwide have been severely impacted by a critical shortage of drivers. This scarcity has pushed rates higher and will likely continue as companies with growing shipment volumes compete for a shrinking and aging driver pool. Carriers find themselves squeezed between rising capacity demands from shippers and competition offering higher wages and bonuses to attract top drivers. This surge in driver pay and signing bonuses is causing carrier rates to increase for shippers.
More carriers are fighting over a shrinking, aging driver workforce
Driver turnover at many carriers exceeds 50%. Recruitment and hiring costs are rising in line with this turnover, along with increased signing bonuses. Driver pay is also climbing as drivers freely seek better-paying carriers.
The average driver age is close to 60, while younger potential drivers show less interest in the profession. One carrier noted an applicant they rejected had worked for 12 different carriers over the last three years. Others report competitors plastering hiring notices on vehicles in their parking lots and losing 10 out of 300 drivers in just one week. Drivers now hold considerable leverage over their employers.
Change your approach or risk falling behind
Shippers who insist on holding carriers to existing rates are finding themselves forced to the spot market, paying more to secure needed capacity. Their current carriers struggle to find drivers willing to accept lower pay, harder work, and demanding shippers.
Helping carriers attract and keep drivers by being a more driver-friendly shipper is not just a new mindset—it’s a strategic necessity. The phrase “shipper of choice” is now widely used by carriers to describe shippers preferred by drivers. This status directly leads to lower rates and higher acceptance of shipments.
Forward-thinking shippers understand the urgent need to adjust internal processes and demands to present a more accommodating approach to carriers. This means focusing on the needs and preferences of drivers. Activities that reduce driver waiting time and increase billable miles are especially valued by drivers.
Here are some steps shippers are taking to become more attractive to carriers and their drivers:
Give Drivers Longer Pickup Notice
Providing earlier notice of pickups helps carriers find drivers and arrange additional stops or backhauls, allowing drivers to increase their earnings.
Offer Flexible Delivery Windows
Flexibility in delivery timing enables drivers to schedule around convenience, efficiency, Electronic Logging Device (ELD) rules, and subsequent pickups, boosting profitability through better planning.
Maintain Consistent Shipping Demand
Carriers with steady, predictable demand attract regular drivers seeking reliable work and improve customer service with familiar drivers.
Ensure Accurate Forecasts
For carriers with dedicated trucks and drivers at shipper locations, fluctuating daily demand creates inefficiencies. Timely, precise forecasts allow carriers to optimize driver allocation and improve profitability.
Reduce Loading and Unloading Wait Times
Shorter wait times free up carriers to move more loads and drivers to spend more time driving, which directly increases their income.
Provide Drop and Hook Options
Allowing drivers to drop trailers and pick up loaded ones cuts unpaid wait times and increases paid driving hours.
Accommodate Late-Arriving Drivers
Extending dock hours or offering drop trailers helps drivers avoid unusable time due to late arrivals, enabling them to continue working or switch to other loads.
Offer Overnight Parking
With ELD regulations, unplanned layovers are common. Providing safe overnight parking is highly valued by drivers.
Address Operational Issues Promptly
Loading dock conflicts are a frequent source of tension. Shippers of choice quickly resolve problems and prevent future issues.
Enable Multi-Stop Routing
Combining inbound and outbound deliveries reduces empty miles and offers premium value to carriers, while giving shippers needed outbound capacity.
Provide Clear and Complete Order Details
Accurate addresses, dock IDs, hours, and special instructions reduce confusion and delays for drivers.
Set Standing Appointments for Regular Drivers
Predictable orders allow drivers to secure consistent dock times, cutting wait and load times.
Use Web-Based Communication Tools
Providing easy-to-use, real-time data portals minimizes manual work for carriers and improves reporting efficiency.
Today’s carriers and drivers have more choices than ever. That’s why shippers must understand and respond to their needs and preferences. While attracting carriers may require extra effort, it will pay off with lower rates and greater capacity availability.
