John Wagner Looks At Some Of The Latest Transportation News And Figures From 2015 So Far
Inside The Wage Cycle & A Shipper's Forecast
- Everyone who is looking for work will find it.
- Workers look for opportunities to earn more across the street.
- Companies notice they are losing their workforce and raise pay.
- Efforts to be frugal in pay increases have not stemmed their loss of people, and employers raise their wages again and perhaps add better benefits.
- Larger companies may even add day care, transportation assistance, or some other enticement to attract workers.
- When a recession occurs in eight to 10 years, the cycle completes itself with the lowest-skilled workers being laid off and entry-level wages reduced.
Even though freight is flat, carriers are going to increase freight rates in the 4 to 9 percent range between now and the end of 2016.
Remember that carriers are dealing with the continuing driver shortage and those shippers that are friendly in turning equipment and creating a productive driver environment will find it easier to attract the capacity they need.
Spread your loads as much as possible throughout the month and avoid having all of your loads move in the last week of the month.
Carriers are accepting regulatory burdens such as electronic logging, speed limiters, more stringent drug and alcohol testing for drivers and a moving target in the adoption of CSA restrictions, resulting in higher rates.
Carriers are looking for friendly payment terms. Want 90 days? Dream on, or expect to pay for it.
Train your people to treat drivers with respect when they show up at your dock. Make sure restroom facilities are available to them. It’s common courtesy and it will get the dispatchers favorable comments from the drivers who are serving your business and make them want to come back.
Remember that although freight is flat now, the potential exists in 2016 for the tight truck market we all experienced in 2014. Contract your freight now and lock in pricing and capacity for 2016.