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May 18, 2015

"THE SHORTAGE IT'S OF QUALIFIED DRIVERS" * USA

* Texas - Rising driver pay keeps pressure on truck rates, trucking operators


-- The U.S.A. economy slowed in the first quarter, but there’s been no let-up in the pressure on truck driver wages... Another round of increases in driver pay is expected to drive truck pricing, especially in the truckload sector, higher for shippers as the year progresses... Pay increases on a scale of 8 to 12 percent, on top of substantial increases last year, are being discussed at many trucking companies, as well as additional incentives and bonuses. All of which will add to transportation costs for those shipping goods by truck... In fact, driver pay may be a bigger factor in rising truck rates in 2015 than freight demand generated by economic growth. Although the U.S.A. economy is expected to expand, economic activity may not match the pace set in the 2014 second and third quarters. Pay is one way to attract drivers, but to keep them, trucking companies are thinking about more far-reaching changes in not just how they pay but how they manage truckers... If the driver pool is going keep up with demand, a new business model is badly needed. Unlike the economy, the pool of available truck drivers, at least qualified drivers, is not expanding, and that’s a challenge for David Schumann, general manager of TTS’ Progressive division said: “Those are the drivers that meet our insurance requirements, meet our background checks, all of our guidelines. We like to say this is a shortage of qualified drivers” ... Frisco, TXS, USA - J.O.C., by William B. Cassidy - May 15, 2015

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