Recession Leads to Oversupply of Drivers

Recession Leads to Oversupply of Drivers
Sunday Jan 4, 2009

Green Bay firm Schneider National Inc., one of the largest trucking companies in the US, has announced that it will stop training new truck drivers.

Schneider has not limited itself to hiring exclusively experienced drivers since the mid-1980s.

Before the current economic downturn, a nationwide driver shortage prevailed. There was high turnover that drove up pay; thus leaving trucks idle regardless of demand.
This has all changed now as large numbers of trucking companies fail and a greater amount of trucks sit idle. So with fewer options, more truckers are deciding to stay where they are.

According to the American Trucking Association and the Owner-Operator Independent Drivers Association, there is no longer a driver shortage but in fact an oversupply. For Schneider, though, due to the low freight volume, it is hardly worth it to spend approximately $8,000 and 45 days to train new drivers vs. $1,500 and 4 days to orient an experienced driver to their company.

Despite being on a downward trend, however,the American Trucking Association reported an increase in monthly freight tonnage for November 2008. Until the economic tide changes, companies can look forward to greater savings and their pick of
experienced drivers looking for work.