A Shortage of Truckers Will Drive Up Freight Rates

Labor shortages are starting to weigh on businesses in many industries across the U.S., as this week’s Kiplinger Letter documents. (Click here to get the first page of this week’s Letter.)   A recent survey of small businesses found that 30% of them have had to increase pay during the last three to six months to find or retain enough workers. That’s the highest level since 2001. About half of small businesses say they can’t get enough qualified job applicants. And the shortages span the pay scale across different industries: Everyone from carpenters to cooks to computer programmers.

One business that is no stranger to the problem: Trucking. Fleet owners have been grappling with a dearth of qualified, licensed truck drivers for years. Veteran drivers are reaching retirement age without enough young recruits joining the industry to take their places. That forces fleets to pony up higher salaries, bigger bonuses and richer benefits to attract or retain drivers. And since labor is the industry’s biggest cost, the competition for drivers points to rising freight rates for shippers this year.

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