Leading invoice funding company Charter Capital says the transportation industry is making moves to end the trucker shortage. As reported by the American Trucking Associations (ATA), the United States is presently short 80,000 truckers. The figure could climb as high as 160,000 by 2030 if left unchecked. Full coverage of the situation is available in “4 Ways the Transportation Industry is Addressing the Truck Driver Shortage,” which is now live on charcap.com.
Many factors are contributing to the shortage. More than half of it, per the National Transportation Institute (NTI), can be tied to retirement. As drivers age out of trucking, the industry is failing to attract younger drivers as it once did. Challenging working conditions and low pay are also cited.
“Transportation companies are bumping up pay to attract and retain skilled truckers,” says Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “That helps individual companies persevere, but it hasn’t been enough to start attracting younger professionals to the field yet.”
Rosenthal points to initiatives across the country including the Safe Driver Apprenticeship Pilot Program (SDAP) from the Federal Motor Carrier Safety Administration (FMCSA), which may help the industry attract fresh talent. Individual states are taking action too. New York, for example, is enacting legislation to allow those age 18 and up the opportunity to earn a CDL Class A through a specialized training program. Previously, only those 21 and up could obtain the license.
Even still, some industry experts contend the country is experiencing a “reallocation of drivers” more than a shortage, as truckers move away from large fleets to smaller companies or form their own firms.
“We are seeing more small and midsize trucking companies applying for factoring,” Rosenthal notes. “In some cases, it’s owner/operators accelerating cash flow to cope with notoriously slow payments across the industry. Other times, it’s larger companies ensuring they can cover increased payroll expenses.”
Rosenthal explains that, with transportation factoring, companies can get paid as soon as a load is dropped off, so it’s easier to accept another load and grow. Through Charter Capital’s freight factoring program, companies can qualify for perks like fuel cards too.
Those interested in learning more about transportation factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.