There is a continuing stream of press about the shortage of over-the-road truck drivers in the country today. Right now, the shortage is estimated at 125,000 fewer drivers than are necessary to meet demand. According to the Department of Labor and FTR Associates, this shortage will more than double by the end of 2013, the largest deficit in nine years. In 2012, turnover averaged 98% at the large carriers and 82% at the smaller operations.

Depending on which side of the fence you are sitting, the shortage is blamed on such things as CSA 2010 activity, reduced hours-of-service rules, and traffic delays caused by infrastructure. However, the most recent data shows that the average salary for an over-the-road driver in 2011 was $39,830. This is not exactly an overwhelming amount when you consider the hours, working conditions, bad food, and the impact on personal and family life. If the economy continues to improve, I suspect even more drivers will turn to other occupations where they can make an increased salary and be more like normal people.

While some carriers are trying to deal with the salary situation, it will take an industry-wide effort to make a significant impact. The carriers must be prepared to face cost increases; but more importantly, shippers must recognize that to get the service they need, they must pay more.

On March 22, the US Senate issued a symbolic endorsement of the Keystone XL pipeline, which would deliver crude oil extracted from Canadian tar sands to refineries in Texas. Proponents of the pipeline claim that it would provide US jobs and might lower the cost of gasoline.

Environmental groups have vocally opposed Keystone XL, asking President Obama to reject the proposed expansion of the Keystone Pipeline. On Wednesday, an estimated 1,000 demonstrators are expected to protest the pipeline during the president's fundraising trip to San Francisco.

Recently, many in Congress have expressed a desire to move past party lines. A growing group of Representatives now insists that a bipartisan solution is simple: Transport the oil without building a pipeline.

Eco-friendly alternative to pipeline construction

According to Rep. Elena Escarrà (D-CO), a member of the Natural Resources Committee, the most eco-friendly answer is to "upcycle" existing infrastructure, namely, the nation's largest waterway.

The proposal calls for the crude oil to be poured directly into the Mississippi River, where the current would carry it to collection stations in Illinois and Louisiana. Because oil floats, it can be skimmed without disturbing the river's ecosystem, asserted Escarrà. "Organisms living in the river will begin the process of digesting the crude. This extra step will provide us with cleaner oil at a lower cost."

More details of the proposed bill, nicknamed "Oil and Waterway" by several media outlets, are expected to surface later today. The unorthodox proposal is already receiving tweets of support as legislators from both parties rush to cosponsor the promising piece of legislation.

Rep. Glen Wilborne (R-IA), a member of the Committee on Transportation and Infrastructure, emphasized potential benefits for other areas of the logistics industry. "At its current depths, the Mississippi River is a rusty machine. Once we've oiled its surface, our barges will float with ease," said Wilborne. Consequently, dredging could be postponed "until actually needed."

Sustainable job creation

Calming the tide of environmentalist concern is only half the battle. How does the proposal stack up, jobwise?

Oil and Waterway proposes to create jobs to construct and operate the two oil collection centers. However, critics claim that the proposal could fall short of Keystone XL's job creation potential.

A spokesperson for the proposed bill says that its job creation would be driven by the transportation industry. The bulk of the new jobs would be added to deliver the collected oil to refineries in Texas.

Because no new pipeline will be built, Oil and Waterway proposes to bring the oil by tank trucks. One legislator reasoned that this pipeline-alternative proposal would create many new jobs for truckers, some of whom may have lost jobs in the aftermath of the Recession. "We pledge to end the truck driver job shortage," said Rep. Kelly McCroy (R-OH).

Editor's Note: Happy April Fool's Day!

Long-time readers of The Link may recall last year's April Fool's Day post: Truck driver shortage officially over. I had a little fun with this prankster holiday, describing how three (non-existent) trucking companies were dealing with the growing shortage of available truck drivers.

One of these (rhetorical) carriers addressed the problem by adopting a system of "Remote Tractor Operation," recruiting users from online video games to operate tractor-trailers from home and incentivizing good driving with digital badges.

The tongue-in-cheek post outlined potential controversies:

As veteran industry commentator Buck Carville noted, "Many of these remote 'drivers' have never been behind the wheel of a rig." Many have expressed concern that the position of vehicle operator will complicate industry regulations, ultimately leading to a revision of CSA rules. Others assert that because no one is driving these trucks, the FMCSA would have no authority to define operator hours of service or whether an operator would be allowed to use multiple monitors to control multiple vehicles.

Since publishing that post, projects such as Google's driverless cars have gained traction in the news, and Florida and California have joined Nevada in passing laws approving driverless cars.

We may wish to describe this passenger transport system as passive driving, as the person in the driver's seat is not relieved of all responsibilities; for example, Nevada stipulates that the person behind the wheel "may not 'drive' drunk." Beyond potential for consumer use, there has been little debate in the US over the commercial potential of driverless or passive-driving vehicles.

In Japan, a prototype of a truly driverless operation of freight trucks is undergoing testing. On February 25, NEDO, Japan's largest public R&D organization, demonstrated a convoy of four tractor-trailers, which was an update of the three-vehicle convoy it unveiled in 2010. These vehicles, which would not be guided remotely by human operators, can communicate with each other within 20 milliseconds. NEDO plans to have a driverless transport system functioning by 2020.

As new transportation models test a shift from active driving (the current system) to passive and even driverless driving, how do you think the supply chain industry will be affected?

Editor's note: Be sure to subscribe now to be sure to get our 2013 April Fool's Day post on time!

Keep on truckin'. (Source)

During the past several years, we have read and heard thousands of words on the truck driver shortage in the country. There is no doubt that a shortage exists. Let's face it; long hours, government intervention, marginal rest facilities, bad roads, bad food and relatively low pay tend to push truck driving pretty far down on most of our lists of ambitions. Unfortunately, we have heard so much about the subject, with widely varying descriptions of the problem, many of us have taken a rather "ho hum" position on the issue. We need to wake up, however. For shippers, fewer drivers add up to less capacity and higher costs. It is not just a carrier problem. It affects all of us.

This month, Bob Costello of the American Trucking Associations published an update which should be of major concern. Costello estimates a current shortage of 20,000 – 25,000 drivers for the over-the-road carriers; but this is expected to explode to 239,000 by 2022. Hours of service regulations and the CSA program are expected to decrease productivity, further exacerbating the problem.

Trucker dog guards the tractor. (Source)

And it is not all about money. It is a lifestyle issue that will not be resolved by a few dollars per hour. Shippers need to work with carriers and drivers in an effort to make the job more "comfortable" and less stressful. Facilities for drivers at many shippers' and receivers' facilities are substandard, at best, and in some cases, there are no provisions for female drivers at all. Improvements can be inexpensive. For example, a significant number of drivers travel with their dogs, and some companies have provided a place for drivers to walk their dogs, as well as made sure there are always a few dog treats on hand. These firms have experienced a marked difference in the service they are provided.

We would do well to remember that happy truck drivers contribute greatly to the success of the nation's supply chain.

On August 24, the FMCSA announced changes to the Comprehensive Safety Analysis 2010 initiative. Implemented in 2011, CSA 2010 was intended "to develop a new approach to identify drivers and operators who pose safety problems and to intervene to address those problems." The initiative caused some concern among drivers because they have become subject to more scrutiny and among carriers since some drivers may not be able to withstand this close attention to their personal and driving habits. Obviously, if many drivers lose their jobs due to these stricter inspections, it will exacerbate the predicted driver shortage. Additionally, carriers will continue to be responsible and accountable for the performance of their employees.

While most responsible carriers and drivers supported CSA 2010, like so many federal regulations, the rules had some rough spots. To FMCSA's credit, they have tried to address these, and the recent changes scheduled to become effective in December of this year are a result of public input – to which they listened. FMCSA also announced the formation of an advisory panel of industry representatives to assist in dealing with CSA issues.

Obviously, this is all about safety. While fatalities involving trucks and buses decreased by almost 5 percent in 2011, almost 4,000 people are still being killed in such crashes every year. Any effort to reduce that number should be welcomed by everyone in the industry.

I give the FMCSA a "B+" on this one.

Image by Roger Sadler