Self-Driving Big Rigs No Solution For Driver Shortage

Times Record (Fort Smith, AR)

June 21--Self-driving big rigs could be a thing of the not-so-distance future, but it still may not put an end to the long-running national driver shortage that logistics companies have noted for years.

Military technology developed by Lockheed Martin called "Autonomous Mobility Applique System" was created to help save lives in hostile areas. The trucks were tested at Fort Polk in Louisiana last year using GPS, lasers and radar to maneuver across long distances and obstacles such as pedestrians.

But that doesn't mean it's ready for commercial applications.

"Trucking is still going to need many people for the delivery of freight because of safety and security issues in cargo theft and with hazardous loads," American Trucking Association spokesman Sean McNally said. "It could create other labor issues, too, with the need for more highly skilled technicians. There's a lot of questions still out there and we look forward to seeing how they're going to be answered."

Transport Topics in May highlighted a report from the Canadian CBC News about a trade group proposing the creation of a corridor for self-driving trucks to deliver freight without passports or visas from Mexico to Canada. The Central North American Trade Corridor Association is planning a study into the feasibility of the route that would run along Route 83, through Texas, Oklahoma, Kansas, Nebraska, South Dakota and North Dakota, the report states.

Rate Hike, Highway Trust Fund

McNally's bosses, however, are more concerned right now about how best to resolve the insolvent Highway Trust Fund, which needs about $15 billion annually to keep roads up to snuff. After Congress approved another short-term extension earlier this month, the fund is now set to expire July 31.

U.S. Rep. Bruce Westerman, R-Hot Springs, introduced a bill recently that aims to move $15 billion a year from Medicaid expansion to serve the trust fund which maintains America's roads and bridges. The fund has faced chronic shortfalls and nearly 30 short-term extensions since 2009. Westerman says the move would free up more annual money in mandatory spending that is "going only to the three out of five states that expanded Medicaid."

Estimates show this change could save $300 billion over 10 years, Westerman states. Roughly one-half of that could be used to build and fix roads in all 50 states while the rest could be used to reduce the national budget deficit.

While the kinks of both of those plans are worked out, there are signs capacity is still tight as prices rise for delivering goods. Truckers haul about 70 percent of the products used in America.

The first week of June, the national average rates per mile for drivers of van and refrigerated trucks increased 5 cents and 4 cents per mile, respectively to $1.90 and $2.23 per mile, and flatbed rates added another penny per mile, according to DAT RateView.

In May, American Trucking Trends reported that the trucking industry generated $700.4 billion in 2014, making it the first year in history the industry topped $700 billion in total revenue. In 2014, trucks moved 9.96 billion tons, or 68.8 percent of all domestic freight. Commercial trucks paid $16.5 billion in federal highway user fees in 2013, the report added.

ATA Chief Economist Bob Costello said increases in freight, combined with continued tight capacity helped drive revenues. Lower fuel prices also helped motor carriers go on a "buying spree" for new trucks to replace older equipment.

'It's A Hard Life'

Whether that bonanza makes it to truck drivers is a different matter. Because of the long hours and unpredictable conditions in which drivers work, theirs is considered one of the most dangerous jobs in America.

Writer Keith Veronese at io9.com points out in a blog that truck driving is also one of the most "unhealthy jobs in America" noting the increased risk of diabetes, depression and sleep deprivation.

"It's a hard life," Charlie Cline of Oklahoma said last week at the Interstate 40 Travel Center in Ozark. "There's always been a driver shortage and there's always going to be a driver shortage."

Cline has been hauling since 1984, and on Wednesday, he was transporting goods for Auto Zone from a terminal in Memphis. There may be a continual stream of new truck drivers graduating training schools, but they don't last long out on the road after "the newness wears off," he said.

In the specialized division of produce shipments at least, some carriers are feeling the pinch according to PE Logistics owner/operator Sukhmeet Rathore of Fresno, Calif.

Rathore said at least some freight brokers are negotiating cheaper rates because of the lack of produce out west to carry back east.

"Produce is getting short on the West Coast," Rathore said Wednesday at a stop in Mulberry. "Right now we're getting produce over there, but we're not getting paid that much because I guess there a lot of trucks right now so it gives a chance to the brokers to negotiate on the money part."

Rathore, who is 25 years old and a former software engineer for Experian in California, said that this time last year he was getting between $8,000 and $8,500 a load and now it is between $7,000 and $7,500.

"It's not the broker's fault," Rathore added. "It's basically our fault, because the people like us are starting on low prices so that gives the chance to the broker."

Team drivers are also on the rise, Rathore said, because rail lines are able to better compete with trucks on timing.

"If the broker has to send the shipment in five days he's not going to choose the driver ... he's going to choose the train because that's more reliable and more secure. Over the road there are a lot of accidents, so why is he going to take a chance?"

"We're risking our lives as soon as we take that freeway. You never know what's going to happen," Rathore said.

Improved Pay and Benefits

Trucking companies like USA Truck in Van Buren are recruiting drivers with improved pay and benefits.

Russell Overla, executive vice president of truckload operations for USA Truck, said he believes in working to find a way "to continue to improve pay for drivers in the transportation industry" and that most truckers don't get paid what they deserve.

"The pay does not match the requirements, hours and overall challenges that a career professional driver encounters on a daily basis," Overla said in an emailed statement. "Compensation is more than just a cent-per-mile rate. It should be considered as part of an overall pay package from the base to incentives, retirement, home time, equipment provided and how you are treated within your company."

Overla went on to say that USA Truck has done its research on drivers and has come up with a better compensation package. They looked at driver's opportunities and rates, total compensation for the number of hours put in, and performance levels.

"We recently acted on this driver input by revamping our driver pay to include rate per mile based on experience, a quarterly bonus program based on performance such as miles driven and safety, and an annual bonus based on tenure with USA Truck," Overla said.

USA Truck also added a 401(k) match program and a "very substantial" health care program through United Healthcare following the federal mandate for health insurance.

Kathy Fieweger, vice president of marketing and corporate communications for Fort Smith-based ArcBest Corporation, simply wrote that the company's Teamster drivers at ABF Freight "are among the best compensated in the industry as we pay top-tier wages and benefits."

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