The Meg of Logistics, the driver shortage

Posted by Harriet Mills on Aug 18, 2018 10:30:00 AM

megSo I just saw the blockbuster hit The Meg this weekend. If you aren’t familiar with the movie, this nail biter is based on a fantastic discovery about the Marianas Trench, the deepest part of the ocean floor. The truth is (in the movie), it isn’t a floor at all, but a layer of dense hydrogen sulfide protecting an undiscovered and unspoiled ecosystem below. Guess who lives there? You got it – Megalodon, a 75-foot prehistoric shark, as well as some other unsettlingly large ocean creatures. It was great fun!

The movie got me thinking about technology and the future of logistics, and how the biggest, scariest single hurdle we face ... the meg of logistics, is the driver shortage. The future is unwritten but there is a real danger in the near future of not having enough drivers to move the country’s food and other goods. It has the potential to become a frightening scenario.

meg2Technology may help alleviate the problem with the further development of driverless and autonomous trucks, but that doesn’t help us in the short term where the shortage could reach a deficit of 175,000 drivers by 2026, according to the ATA. There’s also speculation surrounding the effectiveness of FMCSA’s pilot program, Fixing America’s Surface Transport, or FAST program. The idea is to recruit 18 to 21 year-olds who have prior military experience in logistics who will be allowed to cross state lines to fill some of the driver jobs, but this has not yet passed and has some opposition.

Other possible solutions include tapping into the 47% of women who make up today’s workforce, only six percent of whom are commercial truck drivers. Another common suggestion is raising driver pay. There is also the option of using intermodal services to help alleviate some of the over-the-road capacity when the driver shortage peaks.

I think Dan Clark has the right idea in his blog, An aggressive, Four-Point Plan to Solve the Driver Shortage.  All four of his suggestions are good, but one in particular speaks to the root of the problem. Trucking needs rebranding.

In the 70s and 80s, Hollywood made trucking cool. There was Smokey and the Bandit (1977), Convoy (1978), and Big Trouble in Little China (1986). A truck driver’s job portrayed a sense of freedom and autonomy, which was enhanced by a bit of healthy defiance. Who wouldn’t want a life on the open road, especially before all of life’s obligations hit you? No concerns except for the cargo you’re carrying.

But to millennial career seekers, the trucking industry seems old school. Young people’s perception of drivers is that they symbolize generations stuck in the past, making them all technology-challenged.

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Those of us in the business know this couldn’t be farther from the truth. Logistics is one of the most heavily funded, aggressive adopters of new technologies in the world. Drivers are interacting with highly sophisticated track and trace capabilities along with ground-breaking transportation management systems and sensor-laden trucks and engines that make working in the industry a whole new experience. Visibility and transparency are key drivers of the technology boom in logistics.

Promoting the technology aspect of the business is what will change the industry’s image. As a marketer, it’s time to blow up that Megalodon. We need to eliminate the fear of the driver shortage by appealing to millennials, gaining their interest in the industry, and fulfilling jobs. A series of killer marketing campaigns kicked off by industry leaders could expose what we in the business already know: how cool trucking still is – and how it is becoming more so every year with technology.   

Choptank Transport Market ReportMarket Report Jul/Aug 2018

LOGISTICS MOVES PRETTY FAST

“Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.” — Ferris.  The iconic picture of these two looking at the Ferrari careening down the hill might describe the shock you are feeling as the market pivoted sharply this past month.  Of course, it depends on which side you are on as to whether you have a smile or a frown!  Just as “Ferris Bueller’s Day Off” enjoys a resurgence after 30 years we are reminded, once again, of how things are cyclical and we should be anything but shocked by the market’s volatility.  

Here is a brief market overview and report on all the factors driving the current market, our expectations for where it’s headed, and most importantly, how to manage this market and come out on top!   

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