The annualized turnover rate at large truckload carriers and less-than-truckload carriers increased in the second quarter of 2018, according to the American Trucking Associations’ Trucking Activity Report.
The churn rate at large truckload fleets with over $30 million in annual revenue jumped four percentage points to 98% in the latest report. This is the highest level since the fourth quarter of 2015. So far this year, turnover is averaging 96%, on pace to be the highest annual rate since 2013.
“So far this year, the turnover rate at large truckload fleets is up ten percentage points,” said Bob Costello, ATA chief economist . “The extreme tightening of the driver market – driven by solid freight demand – will continue to challenge fleets looking for qualified drivers.”
Turnover also increased at the usually more stable less-than-truckload fleets, jumping four percentage points to 14%, the highest level since the first quarter of 2013. Costello said that this increase could mean that the LTL segment is struggling with drivers more than in the recent past and that could mean that the industry’s problem finding qualified drivers is deepening across the board.
Meanwhile, the turnover rate fell by one percentage point at smaller truckload fleets, dropping to 72% for the second quarter.
“There is something happening with turnover at these smaller fleets,” Costello said. “The driver market remains tight across the truckload sector, but the turnover rate at these smaller carriers is down 14 points from the same time last year. Like large carriers, small truckload carriers have been aggressively raising pay this year, which has helped their turnover rate level off.”