Driver Shortage Hurts Con-way’s Volume And Profit

Con-way

The tight driver market is limiting our ability to fully seat our fleet,” says Con-way president Douglas Stotlar, addressing the way that a competitive market for truck drivers has impacted the company’s profitability and efficiency.

Con-way reported that the driver shortage cost them 7.8 percent in net profit year-over-year. Daily tonnage suffered a 1.4 percent year-over-year loss as well. To hire enough drivers, Con-way has been forced to raise wages and increase benefits, which they say has cut into overall profits. The damage caused by the driver shortage has been compounded by harsh winter weather conditions and slow volume growth.

However, Con-way reports that overall revenue is actually up in spite of the driver shortage. They credit this to lower fuel costs, higher prices, and reduced operating costs.

Experts estimate that the overall driver shortage has reached 35,000 to 40,000 drivers. They blame the trucking industry’s inability to recruit younger drivers.

Source:
Journal of Commerce