Is It Time To Get A CDL?

In today’s world, it is not uncommon for any one of us to order an item online and have it arrive at a store or our homes. We rarely stop to think about the logistics concerning the transportation of those goods throughout the country. There is a growing concern in the marketplace that the increase of shipped goods is growing at a rate that trucking companies cannot conceivably keep up with. According to Bloomberg, “The trucking industry is unique because it’s the lifeblood of moving goods around the country, representing 70 percent of the nation’s freight volume by weight. Without enough trucks and drivers on the road, some combination of things is going to happen: Shipments will be delayed, and producers will have to pay higher prices to get goods to market.” For example, if you try to order a car service like Uber on New Year’s Eve or during a peak hour, your rate will be exponentially higher than the normal rate.  According to the American Trucking Association, “…driver shortfall could reach 50,000 positions by the end of this year and if trends hold, will grow to more than 175,000 by 2026.”

The Bloomberg article does not provide a positive outlook on the situation, “There’s no reason to think the labor situation in the trucking industry should get better any time soon. Everyone in business and the technology sectors is talking about a future of self-driving trucks — hardly giving prospective workers the incentive to commit to multi-week classes to attain a commercial driver’s license for an industry that might be going away. In the short term, truckers must switch from logging their hours on paper to doing it electronically by April 1 or face penalties, which may reduce driver capacity by no longer allowing drivers to fudge their hours on paper to stay on the road longer.”

It would seem as if a collision course is imminent as our expectation of delivered goods clash with the harsh reality of a lean driver market. It will be interesting to watch companies become more creative with their driver incentives and hiring practices.



Written by:

Daniel is Vice President of Fleet Card Services. His focus is on growing Guttman Energy’s Fleet Card Services business, including our Fuelman Fleet card and Pac Pride commercial fueling operations Daniel’s responsibilities include finding new offerings to enhance our card offering, improving the profitability of the business, and driving growth through both new customer additions and acquisitions of competitive card decks. Prior to his current role, Daniel served as the Manager of Business Development. His previous roles also include data analyst, wholesale and commercial sales, as well as pipeline scheduling. Daniel received his Bachelor of Arts degree from the University of Vermont and has earned educational certificates from the University of Pittsburgh, the Kellogg School of Business at Northwestern University, and Harvard Business School. Daniel Guttman has become the first fourth generation family member to become an executive of the company. Daniel’s great-grandfather founded the Company in 1931.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED “AS IS,” WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.