Truckload turnover rate lowest since monitoring began

The turnover rate dropped to an annualized rate of 52 percent at large truckload fleets. (The Trucker file photo)

By LYNDON FINNEY
The Trucker Staff

9/30/2009

WASHINGTON — The turnover rate among truckload carriers has plummeted well over 80 percentage points since 2005, the American Trucking Associations reported Tuesday.

ATA officials pointed to the current economic situation, lower freight levels and job cuts as the reason turnover at truckload carriers were at the lowest level in 14 years during the second quarter (the rate includes all employees — mechanics, general office staff, sales people, dispatchers, local drivers and line-haulers).

The turnover rate dropped to an annualized rate of 52 percent at large truckload fleets (those with at least $30 million in revenue) and to 42 percent at smaller truckload carriers, the lowest since ATA began monitoring driver turnover.

During the fourth quarter of 2005, the turnover rate had hit 136 percent.

Both rates were well below one year ago, when the ATA reported an 85 percent turnover rate for larger TL carriers and 76 percent for smaller ones.

“No, not given the current circumstances, no,” Truckload Carriers Association President Chris Burruss said when asked if the record low rate surprised him.

As for decreases in employment, the total number of line-haul drivers among small TL carriers dropped 1.8 percent during the second quarter and 1.9 percent among large TL carriers.

“Certainly, the low turnover rates are a product of the recession,” Bob Costello, chief economist at ATA said. “However, it is important to note that higher turnover rates and the driver shortage will return when economic activity becomes more robust.”

Seasonally adjusted employment peaked at 1.45 million in January 2007, according to the Bureau of Labor Statistics. Since then, some 195,000 jobs have been lost in the industry.

But most trucking industry stakeholders feel the current downturn will reverse and when it does, will reverse with fury.

That is of some concern to TCA’s Burruss, who says it may be a challenge to fill the empty seats with experienced drivers who’ve left the industry.

“I think that has to be a concern, and while we don’t hear a lot of formal discussion about it, in smaller circles you certainly hear it,” Burruss said. “I think folks have been so preoccupied just trying to sustain their businesses that sometimes it’s hard to look beyond today and start thinking about those things. But I do think it will be a challenge. I think certainly we’ve lost drivers to other industries and it’s a good question of whether they’ll come back or not. This is one of those situations where we’ve seen economic downturns before, but this one is probably as severe as any we have seen and it’s kind of uncharted waters.”

Lyndon Finney of The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

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