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		<title>ATA Opens Industry Survey That Shapes the 2026 Driver Compensation Study</title>
		<link>https://truckdriversus.com/ata-opens-industry-survey-that-shapes-the-2026-driver-compensation-study/</link>
		
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		<pubDate>Fri, 16 Jan 2026 15:00:19 +0000</pubDate>
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		<guid isPermaLink="false">https://truckdriversus.com/?p=715886</guid>

					<description><![CDATA[<p>As carriers continue navigating a prolonged freight downturn, access to accurate pay data is becoming more critical across the trucking industry. To help fleets and decision makers better understand compensation [&#8230;]</p>
<p>The post <a href="https://truckdriversus.com/ata-opens-industry-survey-that-shapes-the-2026-driver-compensation-study/">ATA Opens Industry Survey That Shapes the 2026 Driver Compensation Study</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>As carriers continue navigating a prolonged freight downturn, access to accurate pay data is becoming more critical across the trucking industry. To help fleets and decision makers better understand compensation trends, the <a href="https://www.trucking.org/">American Trucking Associations</a> has opened participation for its 2026 Driver Compensation Study.</p>
<p>The nationwide survey gathers detailed information on wages, benefits, bonuses, and incentive structures from trucking companies operating in different regions and business segments. The goal is to provide carriers with reliable benchmarks they can use to evaluate their own driver pay programs and remain competitive in a challenging market.</p>
<p>“In this difficult and prolonged freight recession, the companies with the greatest edge are the ones that have the best data,” said Bob Costello, ATA chief economist. “As a one-of-a-kind benchmarking tool, the Driver Compensation Study provides the crucial, actionable intelligence motor carriers need to recruit and retain their most valuable resource: professional truck drivers. To get as accurate a picture of industry trends as possible, we rely on input from a large cross-section of motor carriers to provide detailed information about their total compensation packages and supply a clear view of how – and how much – trucking companies pay their drivers.”</p>
<h2><strong>First Update Since 2024</strong></h2>
<p>The compensation study was last conducted in 2024 and remains one of the most comprehensive sources of driver pay data in the industry. Previous surveys included hundreds of fleets, representing for-hire truckload carriers, less-than-truckload carriers, private fleets, and other commercial trucking operations.</p>
<p>“The 2026 Driver Compensation Study will include detailed pay estimates broken down by carrier types, trailer types, and routes,” ATA said. “It will also explore the wide variety of driver pay structures (hourly, per-mile, annual salary, percent of revenue) as well as various incentives. All proprietary information from individual carriers is kept confidential; only aggregate data is included in the final report.”</p>
<h4><strong>Why Participation Matters</strong></h4>
<p>Survey participants are eligible to purchase the 2026 ATA Driver Compensation Study for $100, representing more than 90 percent off the full price. Additional benefits include a free executive summary ahead of the full report’s release and an invitation to a no-cost webinar with ATA’s chief economist to review the findings and answer questions.</p>
<p>To participate in the 2026 ATA Driver Compensation Study survey, click <a href="https://www.surveymonkey.com/r/ATA-Driver-Comp-Survey">here</a>. The survey deadline is March 30.</p>
<p>To review participation benefits and see sample pages from previous reports, click <a href="https://www.trucking.org/driver-compensation-study">here</a> or email lbur@trucking.org.</p>
<p><i><span style="font-size: 11.0pt;font-family: 'Calibri',sans-serif">Source: </span></i><a href="https://www.thetrucker.com/"><i><span style="font-size: 11.0pt;font-family: 'Calibri',sans-serif">The Trucker</span></i></a><i></i></p>
<p>The post <a href="https://truckdriversus.com/ata-opens-industry-survey-that-shapes-the-2026-driver-compensation-study/">ATA Opens Industry Survey That Shapes the 2026 Driver Compensation Study</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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		<title>The Great Capacity Purge: What Truck Drivers Need to Know</title>
		<link>https://truckdriversus.com/the-great-capacity-purge-what-truck-drivers-need-to-know/</link>
		
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		<pubDate>Tue, 04 Nov 2025 14:00:40 +0000</pubDate>
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		<guid isPermaLink="false">https://truckdriversus.com/?p=692285</guid>

					<description><![CDATA[<p>The trucking industry is heading into one of the biggest shakeups in its history. Freight volumes are falling, regulations are tightening, and economists warn that as many as 600,000 active [&#8230;]</p>
<p>The post <a href="https://truckdriversus.com/the-great-capacity-purge-what-truck-drivers-need-to-know/">The Great Capacity Purge: What Truck Drivers Need to Know</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>The trucking industry is heading into one of the biggest shakeups in its history. Freight volumes are falling, regulations are tightening, and economists warn that as many as 600,000 active drivers could be pushed out of the market. Experts are calling it the largest capacity purge ever seen in U.S. trucking, a period that could completely reshape how freight moves across the country.</p>
<h2><strong>The Calm Before a Freight Storm</strong></h2>
<p>Right now, trucking feels stuck in neutral. Freight demand is weak, spot rates have cooled, and both carriers and brokers are under strain. Many in the industry describe this moment as the calm before the storm, with indicators pointing toward a major correction that could rival the market chaos of the COVID years.</p>
<p>The warning is clear: if 600,000 drivers leave the market, capacity will tighten quickly and spot rates could skyrocket. Unlike during the pandemic, there will be no surge of new immigrant drivers to fill the gap. That relief valve, once supported by open immigration policies, is now closed. Carriers will have to compete harder for qualified drivers through better pay, sign-on bonuses, and improved working conditions.</p>
<h3><strong>What’s Fueling the Freight Downturn</strong></h3>
<p>Freight volumes are down 18 percent year over year, hitting carriers of every size. For freight brokers, the challenge is even tougher. With fewer loads to move, margins have evaporated. Some are stuck with contract rates signed too low to stay profitable, forcing them to compete against asset-based carriers while losing money on every run.</p>
<p>Small fleets are feeling the squeeze most. Many have relied on non-domiciled CDL drivers, but new federal regulations around English Language Proficiency are cutting off that supply. On top of that, fraud in load boards and verification systems has exploded. Scammers have found ways to manipulate tools like Highway and RMIS, forcing brokers to be more cautious.</p>
<p>That means even legitimate carriers can be flagged by mistake. Once that happens, they can be locked out of most brokerage freight entirely, which can be a death blow for smaller operations already struggling to stay afloat.</p>
<h3><strong>How New Rules Could Wipe Out 600,000 Drivers</strong></h3>
<p>This expected capacity purge ties directly to federal regulatory changes and immigration enforcement already underway. According to <a href="https://www.jbhunt.com/blog/enterprise/immigration-policy-impact">research</a> from J.B. Hunt, new rules for non-domiciled CDL holders and English Language Proficiency requirements could remove between 214,000 and 437,000 drivers, roughly 5 to 12 percent of the U.S. driver pool over the next few years.</p>
<p>On September 26, 2025, the Federal Motor Carrier Safety Administration issued an emergency ruling that restricts the issuance and renewal of non-domiciled CDLs. Officials estimate that 97 percent of the 200,000 drivers who currently hold those licenses will not meet the new standards and will likely exit the industry within three years. That alone represents 5 percent of all registered CDLs in the country.</p>
<p>Stricter enforcement of English Language Proficiency standards has already led to 23,000 violations, including 5,000 out-of-service orders. Analyst Avery Vise projects that this enforcement could sideline about 20,000 drivers each year.</p>
<p>When combined with limits on undocumented drivers and new hiring restrictions, transport economist Noël Perry estimates that more than 600,000 drivers, about 17 percent of the active workforce, could be removed from trucking.</p>
<p>Carriers that rely heavily on immigrant labor or those unable to comply with the new regulations may not survive this purge.</p>
<h4><strong>The Economic Ripple Effect</strong></h4>
<p>These rule changes, combined with a long freight recession, are creating a perfect storm for widespread bankruptcies. Both carriers and brokers are tightening budgets and consolidating operations as the industry braces for a market reset.</p>
<p>The shakeout is expected to favor larger, well-capitalized carriers who can handle the new compliance demands and stay profitable through the downturn. Smaller carriers that grew quickly during the post-COVID freight boom may not have the financial cushion to adapt.</p>
<p>As capacity tightens, driver pay is likely to rise. Carriers will need to offer stronger incentives to attract qualified drivers from a shrinking talent pool. The shift could finally bring the market back to a more balanced place where supply and demand set the rates naturally instead of desperation driving them down.</p>
<h4><strong>What Comes Next</strong></h4>
<p>The road ahead will be rough, but it could lead to a healthier trucking market. Analysts predict that after the purge, spot rates will rise again, contract rates will stabilize, and carriers that survive will see more consistent freight and fairer pricing.</p>
<p>The exact timing of this recovery is uncertain, but the direction is clear. Shippers should prepare for higher rates and tighter capacity, while carriers who manage to weather the storm will be well-positioned when freight rebounds.</p>
<p>As one industry expert put it, “If volumes pop—which doesn’t exist right now—hold on to your hat. It’s going to be one of the best freight markets that carriers have seen in some time.”</p>
<p>It may take time and patience to reach that point, but for those who make it through, the rewards could be worth the wait.</p>
<p><em>Source: </em><a href="https://www.freightwaves.com/"><em>FREIGHTWAVES</em></a></p>
<p>The post <a href="https://truckdriversus.com/the-great-capacity-purge-what-truck-drivers-need-to-know/">The Great Capacity Purge: What Truck Drivers Need to Know</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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		<title>Truckers Feel the Pinch as Freight Recession Continues, ATRI Survey Shows</title>
		<link>https://truckdriversus.com/truckers-feel-the-pinch-as-freight-recession-continues-atri-survey-shows/</link>
		
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		<pubDate>Thu, 30 Oct 2025 15:00:28 +0000</pubDate>
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		<guid isPermaLink="false">https://truckdriversus.com/?p=691429</guid>

					<description><![CDATA[<p>Truck drivers do not need a research report to tell them how tough the freight market has been lately. Still, the latest findings from the American Transportation Research Institute put [&#8230;]</p>
<p>The post <a href="https://truckdriversus.com/truckers-feel-the-pinch-as-freight-recession-continues-atri-survey-shows/">Truckers Feel the Pinch as Freight Recession Continues, ATRI Survey Shows</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Truck drivers do not need a research report to tell them how tough the freight market has been lately. Still, the latest findings from the American Transportation Research Institute put real numbers behind what most drivers already know from experience.</p>
<p>According to ATRI’s 2025 report, the freight recession that started nearly three years ago is still weighing heavily on the industry. More than 4,200 people took part in the survey, including over 1,000 drivers and carriers who said the economy is the biggest issue affecting their work.</p>
<p>“Now three years into a historic freight recession, freight rates and tonnage have remained stagnant across the trucking industry at the same time that per-mile costs increased considerably faster than inflation, a perfect storm that is squeezing fleet operating margins and necessitating extensive cost-cutting measures,” ATRI wrote in its report. “Total trucking employment and driver employment specifically continued to fall year over year amid layoffs, market exits, and bankruptcies. Unfortunately, the challenging economic conditions keep these freight capacity reductions from translating into improved rates.”</p>
<p>For the third year in a row, the economy was ranked as the top concern across the industry. It has become clear that drivers and carriers alike are struggling to stay profitable while operating costs keep climbing.</p>
<h2><strong>Rising Costs and Fewer Loads</strong></h2>
<p>Drivers on the road every day have seen it firsthand. Freight has been slow, spot market rates have dipped, and steady runs are harder to come by. The cost of fuel, insurance, and maintenance has not backed down either, which means many fleets are doing more with less. Some have even shut down or cut routes to stay afloat.</p>
<p>ATRI’s data mirrors what truckers have been talking about for months. After years of higher pay and strong freight demand, the market has cooled to the point that even large carriers are tightening their budgets.</p>
<h3><strong>What Truckers Are Most Concerned About</strong></h3>
<p>The survey showed that concerns stretch far beyond just rates and loads. Lawsuit abuse reform and insurance costs jumped ahead of other issues this year, showing how expensive it has become to operate a truck safely and legally. Truck parking, which ranked second in 2024, fell to fourth on the 2025 list.</p>
<p>Here are ATRI’s overall top 10 issues for 2025:</p>
<ol>
<li>Economy</li>
<li>Lawsuit abuse reform</li>
<li>Insurance cost and availability</li>
<li>Truck parking</li>
<li>Driver compensation</li>
<li>CSA</li>
<li>English language proficiency</li>
<li>Diesel emission regulations</li>
<li>Driver training standards</li>
<li>AI in trucking</li>
</ol>
<p>About 46 percent of survey respondents were from motor carriers, 30 percent were truck drivers, and the rest were other freight stakeholders.</p>
<h4><strong>Drivers and Carriers See the Market Differently</strong></h4>
<p>While everyone agrees that money is the biggest concern, the way each group views the challenges is slightly different. Drivers placed compensation as their top issue, while motor carriers focused on the economy as a whole. Both groups pointed to new technology, regulations, and detention delays as growing frustrations.</p>
<p>2025 Top Concerns for Truck Drivers:</p>
<ol>
<li>Driver compensation</li>
<li>Truck parking</li>
<li>English language proficiency for drivers</li>
<li>Broker issues</li>
<li>Detention and delays at customer facilities</li>
<li>AI in trucking</li>
<li>Driver training standards</li>
<li>Autonomous trucks</li>
<li>ELD mandate</li>
<li>Diesel emission regulations</li>
</ol>
<p>Motor Carrier Top Concerns for 2025:</p>
<ol>
<li>Economy</li>
<li>Lawsuit abuse reform</li>
<li>Insurance cost and availability</li>
<li>CSA</li>
<li>Driver shortage</li>
<li>Driver retention</li>
<li>Driver distraction</li>
<li>Diesel emission regulations</li>
<li>Truck parking</li>
<li>Broker issues</li>
</ol>
<h4><strong>Life on the Road Reflects the Data</strong></h4>
<p>The report may come from spreadsheets and survey responses, but the story it tells is one every driver already lives. When freight slows down, everyone feels it. For drivers who are paid by the mile, every empty trailer and canceled load adds stress. For carriers, keeping trucks running and drivers paid without solid freight rates is a constant balancing act.</p>
<p>Until freight demand rebounds, the numbers from ATRI will likely stay the same. For now, truckers continue to grind through one of the toughest markets in recent memory, hoping the road ahead brings better rates and more stability for everyone behind the wheel.</p>
<p><i><span style="font-size: 11.0pt;font-family: 'Calibri',sans-serif">Source: </span></i><a href="https://landline.media/"><i><span style="font-size: 11.0pt;font-family: 'Calibri',sans-serif">Land Line Media</span></i></a><i></i></p>
<p>&nbsp;</p>
<p>The post <a href="https://truckdriversus.com/truckers-feel-the-pinch-as-freight-recession-continues-atri-survey-shows/">Truckers Feel the Pinch as Freight Recession Continues, ATRI Survey Shows</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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		<title>Major Freight Carriers Gear Up for Market Recovery</title>
		<link>https://truckdriversus.com/major-freight-carriers-gear-up-for-market-recovery/</link>
		
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		<pubDate>Wed, 20 Nov 2024 15:00:41 +0000</pubDate>
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		<guid isPermaLink="false">https://truckdriversus.com/?p=580856</guid>

					<description><![CDATA[<p>FedEx and J.B. Hunt Strategize for an Anticipated Freight Surge Two of the top for-hire carriers in the U.S., FedEx and J.B. Hunt, are setting the stage for a potential [&#8230;]</p>
<p>The post <a href="https://truckdriversus.com/major-freight-carriers-gear-up-for-market-recovery/">Major Freight Carriers Gear Up for Market Recovery</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2><strong>FedEx and J.B. Hunt Strategize for an Anticipated Freight Surge</strong></h2>
<p>Two of the top for-hire carriers in the U.S., FedEx and J.B. Hunt, are setting the stage for a potential upswing in the freight industry following a period of tepid demand, as highlighted by executives at a recent industry gathering.</p>
<p>J.B. Hunt Transport Services&#8217; President Shelley Simpson remarked on Nov. 12 at the 54th annual Baird Global Industrial Conference, “This, for us, has been the toughest freight recession — and longest — in terms of depth and duration in my 30-year career. But I think we’ve done a good job managing through that part of the process. We’re looking forward to turning the chapter and hopefully moving into a better position coming into 2025.”</p>
<p>During this downturn, J.B. Hunt prioritized three core areas to ensure readiness for market improvement. These include enhancing customer value to seize emerging opportunities, scaling investments across diverse business units, and delivering long-term returns to shareholders.</p>
<p>Simpson elaborated, “Our first priority is really to reinvest back into the business for long-term returns. Anytime that we could put more capital to use from an equipment perspective on behalf of our customers, that’s going to be over a longer-term basis. And then, certainly, we’re going to be thinking about opportunistic buying from a stock perspective and then return back dividends to our shareholders.”</p>
<p>Meanwhile, FedEx Corp.&#8217;s Chief Financial Officer John Dietrich discussed the broader economic challenges affecting their key revenue streams. “I think if you reflect on the numbers, we were impacted by reductions in our highest yielding products,” he noted. The industrial sector&#8217;s decline has had a notable impact, with manufacturing contracting 23 times over the past two years as per the Manufacturing ISM Report on Business.</p>
<p>Dietrich predicts that industrial production, alongside the rise of e-commerce, will play a significant role in boosting freight volume growth. “We’ll be well positioned for that,” Dietrich said. “E-commerce is going to make up a large percentage — probably up to 90% — of the volume growth that our ground network and our freight business will be the beneficiary of. So, we can’t ignore that volume is going to be there. We just have to find the right cost structure to accommodate it.”</p>
<p>Until the anticipated rebound, FedEx is focused on maximizing revenue quality and managing capacity, largely by transferring heavier freight to truckload services due to ample capacity. Despite some softness in volumes, the pricing environment remains favorable, with Dietrich adding, “You’re seeing volumes are softer [and] the weight per shipment is down slightly, roughly 3%. But we’re seeing a 5% improvement per hundredweight. You have a strong pricing environment and we’ll be very capable of adapting to the return of volumes.”</p>
<p>Simpson also emphasized the freight recession’s link to market disruptions caused by the COVID-19 pandemic, which led to an oversupply of capacity post-pandemic. “We’ve not been good at predicting the entire COVID up or down,” she stated. Despite these challenges, she noted positive developments, particularly in dedicated contract services, which have maintained a robust pipeline and excellent sales productivity.</p>
<p>Looking ahead to 2025, Simpson highlighted the significance of investing in long-term opportunities for personnel, technology, and capacity. “We’ve invested in long-term opportunities for us and our people, our technology and capacity,” she affirmed. “That’s going to be really important for us as we lean into 2025 and think about the capacity that we’ve added. If you think about it from an intermodal perspective, we still have plenty of equipment to really source for our customers, and help them as they grow.”</p>
<p>&nbsp;</p>
<p><em>Source: </em><a href="https://www.ttnews.com/"><em>Transport Topics</em></a></p>
<p>The post <a href="https://truckdriversus.com/major-freight-carriers-gear-up-for-market-recovery/">Major Freight Carriers Gear Up for Market Recovery</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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		<title>Drivers Optimistic About the End of Freight Recession, Backed by Data</title>
		<link>https://truckdriversus.com/drivers-optimistic-about-the-end-of-freight-recession-backed-by-data/</link>
		
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		<pubDate>Fri, 17 Nov 2023 15:00:00 +0000</pubDate>
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					<description><![CDATA[<p>Over 50% of drivers are currently not actively pursuing new driving opportunities, and 56% hold optimistic views on the potential end of the freight recession, according to the findings from [&#8230;]</p>
<p>The post <a href="https://truckdriversus.com/drivers-optimistic-about-the-end-of-freight-recession-backed-by-data/">Drivers Optimistic About the End of Freight Recession, Backed by Data</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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										<content:encoded><![CDATA[<p>Over 50% of drivers are currently not actively pursuing new driving opportunities, and 56% hold optimistic views on the potential end of the freight recession, according to the findings from the fall 2023 Driver Survey conducted by Conversion Interactive Agency in collaboration with People. Data. Analytics (PDA).</p>
<p>The survey explores several crucial aspects, including drivers&#8217; optimism levels concerning the state of the freight market, factors influencing job changes, and their preferences when considering new driving roles.</p>
<p>In this fourth consecutive biannual survey, over half of the respondents indicated that they are not actively seeking new driving opportunities. However, 33.3% of drivers are actively seeking employment, a figure relatively consistent with the previous spring survey where 33.8% expressed interest in new opportunities.</p>
<p>Conversion Interactive Agency emphasizes the significance of this statistic for carriers in the transportation industry, indicating the challenge they face in attracting drivers to their fleets. The survey results suggest a need for truck driver recruiters to adopt and leverage new tools and technology to pursue and process driver applications effectively.</p>
<p>“Embracing innovation and technology is the key to success in today’s driver market, and drivers have already shown their readiness to respond. By leveraging technology like Conversion’s Lead Assist platform with advanced AI automation, we’ve seen a significant boost in the speed and quality of full applications,” said Kelley Walkup, president and CEO of Conversion Interactive Agency.</p>
<p>The incorporation of new tools and technology for recruitment and retention is highlighted as a potential differentiator for carriers, especially during a freight recession. However, it remains a relevant factor at all times. Notably, the survey reveals driver’s opinions on the economy, with 56.1% expressing optimism about the imminent end of the freight recession. This unexpected positivity within the industry suggests that drivers anticipate the current recession, which has been persistent, will end in the near future. While historical data indicates freight recessions typically last 18 to 22 months, no concrete evidence exists for 2023 yet.</p>
<p>“If you have the miles drivers need to make a competitive paycheck in this market, tell that story in your recruitment marketing messages,” Walkup said. “In a freight recession, drivers want to know the freight opportunities your carrier has for them so they know the miles they can expect.”</p>
<p>Responding to inquiries about their primary concerns, drivers identified meeting monthly bills (72.4%) and the importance of home and family (59.5%). Additionally, almost 40% of respondents, reflecting the aging workforce in the industry, expressed concerns about saving for retirement.</p>
<p>“These results underscore the significance of work-life balance and family-related concerns in the lives of our drivers. The concern over retirement savings aligns with the age demographics observed in the survey,” said Scott Dismuke, vice president of operations at PDA.</p>
<p>When asked about actions to attract and retain drivers if they controlled a trucking company, 36.4% of respondents emphasized the need to increase pay. In comparison, 23.3% recommended guaranteeing minimum pay or mileage/loads. These findings underscore the ongoing need for predictable pay, driven by reduced mileage and inconsistent freight. While immediate pay raises may not be the sole solution, initiatives that enable drivers to access more miles remain crucial.</p>
<p>“It’s worth noting that many existing ‘guaranteed pay’ models are not genuine guarantees; they come with conditions,” Dismuke said. “It’s essential to exercise caution when employing the term ‘guarantee,’ as drivers experiencing a ‘guarantee’ that falls short of expectations are at nearly double the risk of turnover. Effective communication about your driver compensation strategies in your recruitment marketing is paramount. Clear, concise, and transparent messaging plays a critical role in establishing trust with drivers.”</p>
<p>According to industry experts, as the economy undergoes continuous transformations, recruitment and retention of drivers remain a formidable challenge for trucking companies. Driver satisfaction requires a comprehensive understanding of individual factors, with carriers urged to maintain a firm grip on data and technology, attentively monitor driver feedback, and proactively address concerns.</p>
<p>Click <a href="https://theresource.conversionia.com/fall-2023-truck-driver-survey">here</a> for the full report.</p>
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<p><em>Source: The Trucker</em></p>
<p>The post <a href="https://truckdriversus.com/drivers-optimistic-about-the-end-of-freight-recession-backed-by-data/">Drivers Optimistic About the End of Freight Recession, Backed by Data</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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		<title>Experts Say Freight Turnaround Could Take Until 2025</title>
		<link>https://truckdriversus.com/experts-say-freight-turnaround-could-take-until-2025/</link>
		
		<dc:creator><![CDATA[admin]]></dc:creator>
		<pubDate>Fri, 06 Oct 2023 13:00:10 +0000</pubDate>
				<category><![CDATA[News]]></category>
		<category><![CDATA[freight recession]]></category>
		<category><![CDATA[industry]]></category>
		<guid isPermaLink="false">https://truckdriversus.com/?p=104614</guid>

					<description><![CDATA[<p>Analysts predict that the freight industry may not see a turnaround until 2025 due to factors such as higher interest rates and sluggish spending. The Journal of Commerce Inland Distribution [&#8230;]</p>
<p>The post <a href="https://truckdriversus.com/experts-say-freight-turnaround-could-take-until-2025/">Experts Say Freight Turnaround Could Take Until 2025</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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										<content:encoded><![CDATA[<p>Analysts predict that the freight industry may not see a turnaround until 2025 due to factors such as higher interest rates and sluggish spending. The Journal of Commerce Inland Distribution Conference revealed that carriers, who were previously hopeful about a potential recovery, should now expect weak conditions to persist until late 2025.</p>
<p>This prediction is supported by weak U.S. economic data, which was shared during the conference. Challenges such as overflowing retail inventories, increasing interest rates, and high costs are preventing the freight market from bouncing back, despite some positive signs of short-term consumer spending.</p>
<p>“We’re on a downward path,” said Paul Bingham, director of economics and country risk transportation consulting for S&amp;P Global. “Really, if we’re going to get into any recovery in terms of the overall economy, it’s not going to be until 2026.”</p>
<p>Despite analysts&#8217; concerns, the U.S. economy is expected to avoid a recession this year. While growth will be modest, with a projected GDP increase of 2.3% in 2021, it may not surpass 1.5% by 2024, according to S&amp;P Global forecasts.</p>
<p><strong>Positive Signs Emerge Despite Freight Recession, but Rising Costs Pose New Challenges</strong></p>
<p>While carriers continue to face a freight recession, there are some encouraging developments on the horizon.</p>
<p>The Federal Reserve&#8217;s efforts to control inflation have impacted consumer spending to some extent, according to Bingham but this hasn&#8217;t been enough to push the country into a full economic recession. Consumers are still purchasing goods, but not at a rate that reduces inventory levels.</p>
<p>This spending pattern has led to a normalization of retail inventories. Additionally, the rate at which trucking companies are leaving the market has slowed down, as rates and capacity stabilize.</p>
<p>Unfortunately, higher costs for essential consumer products like fuel and food, along with increasing interest rates on credit cards, car loans, and mortgages, will hinder future spending, warns Bingham.</p>
<p>If consumers aren&#8217;t buying, manufacturers won&#8217;t produce, which means there won&#8217;t be a demand for shipping, explains Bingham. He emphasizes that there won&#8217;t be a rebound in online purchases or increased demand for goods that would drive freight demand.</p>
<p><strong>2023 Peak Season Expected to be Typical, Trucking Industry Experts Say</strong></p>
<p>According to industry experts, the upcoming peak season in 2023 is projected to be in line with historical trends. Larry Gross, president and founder of Gross Transportation and Consulting, predicts that the peak in intermodal services will begin during the last week of September, which is consistent with past data. In fact, recent statistics show that intermodal volume is currently 6.4% above the average non-holiday week, indicating a normal peak season.</p>
<p>This forecast aligns with the outlook shared by other trucking executives. During the Deutsche Bank&#8217;s 2023 Transportation Conference, J.B. Hunt Transport Services Intermodal President and EVP Darren Field expressed that customers are not anticipating a significant peak season. Similarly, Werner Enterprises Chairman, President, and CEO Derek Leathers believes that the peak season will be muted due to uncertainty surrounding the holiday outlook.</p>
<p>Looking toward the future, Bobby Holland, vice president and director of freight business analytics at U.S. Bank, emphasizes the importance of new home construction as a potential indicator of economic improvement. Strong sales in the housing market can stimulate other sectors by increasing shipments of building materials and boosting sales of various home goods and appliances.</p>
<p>Overall, while the economic rebound is dependent on various factors, experts suggest that monitoring new home sales could provide valuable insight into the direction of the economy.</p>
<p>“We know that interest rates are still higher and that housing starts are at their lows,” Holland said. “When you couple that with minimal housing inventories in some areas of the country, we’re watching to see whether this continues to suppress freight.”</p>
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<p><em>Source: Trucking Dive</em></p>
<p>The post <a href="https://truckdriversus.com/experts-say-freight-turnaround-could-take-until-2025/">Experts Say Freight Turnaround Could Take Until 2025</a> appeared first on <a href="https://truckdriversus.com">Truck Drivers USA</a>.</p>
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