ARLINGTON, Va. — The annualized turnover rate at both large and small truckload carriers rose by double-digit percentage points in the third quarter of 2020 as the industry began bouncing back from a COVID-19 induced slump, according to a statement released by the American Trucking Associations (ATA).
“After a calamitous second quarter, trucking — along with the rest of the economy — began recovering in the third quarter, leading to a tightening of the driver market,” said Bob Costello, chief economist for ATA. “With a more robust freight market, we saw an increase in carriers seeking drivers, which led to increased turnover. Additionally, the driver pool has decreased this year for a host of reasons, including fewer new drivers coming into the industry as truck driver training schools train less drivers due to social distancing requirements.”
In the third quarter, the turnover rate at truckload carriers with more than $30 million in annual revenue rose 10 percentage points to 92% on an annualized basis. The rate at smaller truckload carriers rose 14 points to 74%. Despite the increases, however, the 2020 average turnover rate is still running behind 2019.
“Ironically, turnover bouncing back is a good sign for the economy and for trucking,” Costello said. “The second-quarter drop was almost entirely the result of COVID, and with scientific light at the end of the tunnel, it is possible we will see continued strong freight demand into 2021, and corresponding increases in demand for truck drivers. And, driver pay continues to rise as competition for drivers is intense.”
The annualized turnover rate at less-than-truckload carriers was rose two points to 14% during the third quarter on an annualized basis.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
What about the “bend over” rate? Bend over and get shafted, that is.
I am so tired of hearing about the so called driver turnover rate. I have 31 years OTR.The turnover rate in trucking has always been near 100%.That being a known it is part of trucking, in other words it is NORMAL and always been “baked in the cake “.Yet the reasons for that rate has yet to be addressed.It’s a damn hard life full of divorces, loneliness, depression, missed family and social events.Not to mention the sweat shop labor rates when considering all the unpaid time spent on the road.Why do you think carriers are turning to self driving trucks? No workmans company,401k.
Company pay rates are the same as they were back in the 90’s but the cost of everything has gone up. Just get deeper in the hole every day we’re out here…