Driver Turnover Falls at Large TL Carriers
The third-quarter turnover rate at large truckload carriers fell 11 percentage points to 87%, marking its lowest point since the first quarter of 2017 when it was 74%, American Trucking Associations reported.
At the same time, the churn rate at smaller TL carriers — fleets with less than $30 million in annual revenue — was flat, and less-than-truckload carriers experienced a single-digit decrease in turnover. The decline at the large TL carriers comes after two quarterly increases last year that saw the churn rate climb to 98%. Hikes in driver pay and softer freight volumes were factors behind the decline, said Bob Costello, chief economist at ATA. “Large pay increases fleets have been offering appear to be working, and drivers are remaining with their current carrier.
We did see a softening of freight markets in the third quarter from the incredibly strong pace it had set earlier in the year. Historically, softer freight volumes lead to lower driver turnover,” he said.
In the third quarter, the turnover rate at small TL carriers remained unchanged at 72%, and the churn rate at LTL carriers fell 4 percentage points to 10%. —