(Patrick Burnson – Logistics Management)
After much anticipation, “a trucker’s market” is due to finally arrive in 2018, says Stifel Nicolaus trucking analyst John Larkin, although he cautions that supply and demand is tight across the industry as the domestic economy continues to grow at a slow, steady pace.
“The primary driver of the supply/demand tightness is the economy-wide shortage of skilled, blue collar labor,” he says. “It has become very challenging to find drug free, compliant drivers given today’s driver wages. While driver pay scales began to rise in the 2nd half of 2017, the starting point for wages was so low, that it may take multiple wage hikes before we see any alleviation of this chronic challenge.”
Larkin notes that on December 18, 2017 the Electronic Logging Devices (ELD) mandate will be fully implemented, and that this may “add insult to injury,” further compressing an already tight market. Click here to read more.