Churn In the Trucking Industry: An Uncomfortable Truth to Know

  Turnover in the trucking industry isn’t like other employment opportunities. Instead of having people leave for a different kind of work, drivers with their CDL typically move to a new carrier. Attrition isn’t the problem.   Although there will always be drivers who exit or retire, that percentage is always quite small. That’s how […]

 

Turnover in the trucking industry isn’t like other employment opportunities. Instead of having people leave for a different kind of work, drivers with their CDL typically move to a new carrier. Attrition isn’t the problem.

 

Although there will always be drivers who exit or retire, that percentage is always quite small. That’s how over 309 billion miles get driven each year. [[1]]

 

That means drivers are looking for better opportunities while doing something they love. It’s a reverse process where many truckers look to move to smaller carriers instead of working for the biggest names in the industry.

 

Some companies experience an almost 100% churn rate some years. The industry itself is often above 75% most years, even before COVID. What is it about working for a small carrier that seems so inviting? [[2]]

 

Top Reasons Why Truckers Move to Smaller Carriers

 

Mega carriers are responsible for many of the trucks we see on the country’s highways. Anyone who has gotten behind the wheel with a CDL has likely worked for one or knows someone who did.

 

Although the compensation package and benefits are typically better at a mega carrier, the environment doesn’t always feel right for some drivers. Here are some of the most common reasons truckers want to work with smaller companies.

 

1. A Sense of Community

Some drivers love the independence of a CDL carrier. You can spend long days in your cab, have the freedom to travel, and see things that aren’t possible behind a desk.

 

It can get lonely on the road. That situation suits some, which is why working for a mega carrier can be a great decision. You get paid for doing something you love!

 

If you don’t like that isolation, a smaller carrier provides a different environment. You’re not one person in a sea of other drivers. You become part of a greater whole that is appreciated with gratefulness.

 

Smaller companies can provide a more human approach to a CDL career.

 

2. More Recognition

It isn’t easy to stand out as a driver when you take your CDL to a mega carrier. Some people don’t mind that fact, wanting to report to work each day to collect their checks and pay their bills.

 

Others want their efforts to go above and beyond to be recognized. Why should some people get away with doing a terrible job while everyone else picks up the slack?

 

It is harder to hide when working with a small carrier. People will see your work ethic, recognize your sacrifices, and look for ways to provide support when they’re needed.

 

3. Added Flexibility

Although it would seem like working for the biggest names in the business should provide more flexibility, many CDL drivers find that those companies require strict schedules and routes. The structure is often quite rigid.

 

When you work with a smaller carrier, your times or routes can be more flexible. If you can find someone to cover your usual day and not go outside their hours, you can get to that soccer or baseball game to see your kids play.

 

Most mega carriers don’t supply local routes that get you home each night. Most are lucky to have you home each weekend! If you want more of a work-life balance, smaller companies provide that structure.

 

You could become an owner-operator to create more flexibility in your life, but most first-time drivers don’t have the resources to own or lease a rig. Working for a small agency gets you that check you need.

 

4. Shorter Hauls

Long-haul trucking can be a dynamic career filled with lots of fun exploration opportunities, but it can also be an intense experience. You must meet specific schedules by keeping to timed routes while staying within operational guidelines. That means your trip across the country could be a stressful experience from the moment it starts.

 

Your family naturally worries about you when you’re away from home in the truck. What if there is an accident? Did you get stranded somewhere?

 

Smaller companies are more likely to provide short-haul opportunities. Even if you’re away for a couple of days at a time, that’s still better for everyone compared to a couple of weeks.

 

5. Spot Rate Increases

Smaller carriers often have access to higher spot rates because of the flexibility they provide. Ever since the start of the pandemic, figures have gone to unprecedented levels for the industry. It is one of the reasons why many with a CDL are seriously considering becoming an owner-operator for the first time.

 

A higher spot rate means you get paid more per mile. Mega carriers might publish a nice compensation package, but that doesn’t always come with the extra independence that some CDL drivers prefer.

 

6. Payment Speed

It’s not always about a better wage when you get behind the wheel. Sometimes, you just want faster access to the money you’ve earned. It usually takes brokers about 21 days from the time they receive the paperwork to issue the cash you’ve made. [[3]]

 

Some mega carriers provide programs that let you get the money in 48 hours, but it sometimes takes a percentage of your pay to get that advance. In return, you might get access to tire or fuel discounts when working with specific providers.

 

Although small carriers run into the same problems when dealing with trucker pay, fewer issues with red tape typically get in the way. Drivers often work with a single contact to discuss compensation and benefits, eliminating lost time by sitting on hold or telling the same story to multiple representatives.

 

7. Better Treatment

When you work for a carrier that manages several thousand employees at once, it can feel like you’re more of a commodity at times than a human. One of the biggest complaints that drivers have when they cut ties is that their employer made them feel like an expendable resource.

 

Instead of being a driver, they were just a number.

 

Some truckers don’t care about those circumstances because they’re following a lifestyle they prefer. For those that do, a smaller carrier can feel more like family.

 

Even if you’re gone for a bit, you can pull in, get something from the break room, and run into someone you know to have a friendly chat. It’d be fair to compare the experience of living in a small town to NYC when looking at carrier size differences as a driver.

8. Uncertain Expenses

The average price for one gallon of diesel fuel in the United States was $5.57 in May 2022. That figure represents an increase of more than two dollars from the previous year. [[4]]

 

In the next month, prices rose to $5.72 per gallon. American truckers for the month currently pay more than European drivers for their fueling needs just to get paid. [[5]]

 

Although costs are 40% higher in California than in other states, 2022 shows many communities having record highs for this necessary product. Trucks don’t run without fuel!

 

When you don’t know how expensive your costs will be each month, that makes your income less predictable. If you drive local routes, there is a bit more control over those costs.

 

Are There Any Disadvantages to Working with a Small Carrier?

 

Although small carriers provide several potential benefits, there can be some disadvantages to consider before taking the leap with your CDL.

 

The primary concern involves equipment availability. Mega carriers have plenty of resources available to use, which means trucks and trailers are typically available. Since missing a scheduled run can affect your income, there tends to be less downtime when dealing with repairs.

 

It is also easier to book time off at most larger carriers because the driver pool is more extensive. That means more loads can get covered when it’s time to step away for a couple of weeks to take a vacation. Although smaller carriers often provide this flexibility, it might come at the expense of covering someone else in return at a time that doesn’t work.

 

Larger companies have more conveniences that aren’t always available with small carriers. That could mean a corporate account at a repair shop, hotels for those layovers the rules require, or a tab at one of the country’s truck stop chains. Some even have their own mechanics that can come to you in some situations.

 

Some terminals have gyms, lounges, swimming pools, and restaurants. If you embrace everything about the CDL lifestyle, those conveniences are nice to have. It’s not the same as being at home, but some drivers would rather be on the road.

 

The first step is to earn your commercial driver’s license. Without that CDL, you won’t be getting behind the wheel to start working. The trucking industry is an essential service that helps everyone. When you can find the right fit, whether at a smaller carrier or a bigger one, you won’t be part of the industry churn.

[[1]] Trucking industry in the U.S. – statistics & facts | Statista

[[2]] Fourth Quarter Truck Driver Turnover Rate Shows Muddled Picture | American Trucking Associations

[[3]] how long does it usually take brokers to pay | TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board (thetruckersreport.com)

[[4]] • U.S. diesel fuel retail price per month 2022 | Statista

[[5]] USA diesel prices, 20-Jun-2022 | GlobalPetrolPrices.com