ATA: Driver turnover free fall continues at truckload carriers

Annualized driver turnover rates at large truckload fleets fell another 10 percentage points to 71 percent in the third quarter of 2016, the lowest level since the second quarter of 2011, according to the American Trucking Associations.    Annualized driver turnover rates at large truckload fleets dropped another 10 percentage points to 71 percent during the fourth quarter of 2016, according to the latest figures from the American Trucking Associations (ATA).
   ATA noted the driver turnover rate has now fallen in each of the last four consecutive quarters to reach the lowest level in six years. The fourth quarter decline followed decreases of 13 percentage points in the first quarter, 6 percentage points in the second quarter and 2 points in the third quarter.
   The Q1 2016 decrease for large truckload fleets followed two consecutive quarters above 100 percent, the first such streak since 2012. Average churn rate for large truckload carriers stood at 93 percent for the full year in 2015.
   For small truckload carrier fleets – those with less than $30 million in annual revenues – ATA said the annualized driver turnover rate tumbled 16 points to 64 percent, a five-year low, after ticking up 1 point the previous quarter. Turnover at small truckload operators averaged 79 percent in 2015.
   The turnover rate at less-than-truckload carriers remained significantly lower than at their truckload counterparts, falling 1 percentage points to 8 percent, the lowest level since the first quarter of 2016.
   “Continued declines in turnover rate reflects the overall choppiness of the freight market,” ATA Chief Economist Bob Costello said in a statement. “As inventory levels throughout the supply chain are drawn down to more normal levels, and freight volumes recover, we should see turnover rise along with concerns about the driver shortage.”
   ATA published a report in October 2015 estimating the shortage of drivers in the trucking industry would reach 48,000 by the end of the year and could grow to as many as 175,000 by 2024.