Truckload Driver Turnover

100 Percent Truckload Driver Turnover

The annual turnover rate at large carriers reached 106 percent in second quarter, despite slower economic growth

The annualized driver turnover rate at large truckload carriers shot past 100 percent in the second quarter, rising above that percentage figure for the first time in more than four years, according to the American Trucking Associations.

It’s not a milestone trucking companies will celebrate. A 100 percent turnover rate means truckload carriers need to replace the equivalent of their entire driver pool each year just to maintain employment and capacity at the same level.

At a 100 percent rate, driver turnover can cost larger truckload companies hundreds of thousands if not millions of dollars a year. If recruiting one driver costs $5,000, on average, a company with 500 drivers would pay $2.5 million a year. The turnover rate wasn’t 100 percent in the quarter, however. It was higher.

For truckload carriers with more than $30 million in revenue, driver turnover hit an average of 106 percent in the second quarter, the trucking association said Wednesday, the highest industry turnover level since the fourth quarter of 2007.

That leap represented a 16 percentage point increase in the turnover rate from 90 percent in the first quarter, the ATA said - a sharp increase in a quarter that saw GDP growth slow to 1.7 percent and slower revenue growth at many carriers.

 

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