TRUCKING DEMAND DETERMINANTS
A Closer Look Into the Trucking Industry
The United States is experiencing a shortage of more than 80,000 truck drivers, according to an estimate from the American Trucking Associations. The ATA also estimates that about 72 percent of America’s freight transport moves by trucks, which shows just how dependent consumers are on the drivers who deliver turkeys to stores or gas to pumps or the Christmas presents you order to your doorsteps.
​
This is not just an American problem. Trucks haul comparable amounts of freight in places like the European Union and China, and countries and regions around the world are experiencing driver shortages. The International Road Transport Union documented shortages in a survey of 800 transport companies in more than 20 countries. According to the survey, about 20 percent of positions went unfilled in Eurasia last year.
​
This is also not a new problem. Analysts and industry groups have warned of truck driver shortages for years, around the globe. But supply chain disruptions during the pandemic and surges in demand in places like the US have made this slow-rolling crisis much more acute.
The pandemic opened up Pandora’s box on so many issues. Because of this intense pressure, the capacity has been stretched thin and then you start having delays and you have a slowdow. All of this creates a domino effect, which makes the shortage of drivers even more salient than before.
Why everyone seems to need more truck drivers is a bit more complicated, and it varies from country to country, where regulations and pay and labor conditions and infrastructure all influence the job. The shortage also reflects broader economic trends as, particularly in the United States, labor demand is outstripping supply.
Industry outlook
All of this comes together so that, around the world, fewer and fewer people want to be truck drivers, or stay at it long enough to replace an aging workforce. Long-haul driving, in particular, can be grueling, with lengthy wait times that aren’t compensated and other costs to being out on a route for stretches at a time. Dynamics are different around the world, but the difficulty of being a shipper or a truck driver both have taken a completely different dimension in the post covid era.
