Royalty Truck Insurance knows that the truck driving industry represents one of the largest work forces in the United States. There are over 3.2 million truck driving jobs in the country according to the US Department of Labor statistics and the industry is projected to grow steadily in the coming years higher than the rate of new drivers are developing.

With over three million drivers that need commercial truck insurance out there, we at Royalty have come to understand the business pretty well.  Unfortunately the trucking industry was no exception to layoffs and job closures at the dawn of our current recession—the biggest in this country since the Great Depression.  Shipping needs dropped by about 20% almost immediately with the recession, but recent statistics and quarterly business earning published by the big shipping conglomerates seem to suggest that the industry is picking back up, so much so that they are suggesting a current shortage of truck drivers.

While it’s no cause to throw a parade yet or call the recession over by any means, this is a great sign, as the earnings of trucking companies tend to go hand in hand with the fluctuation of transportation needs, and increased transportation needs tend to go hand in hand with a spiking economy.

According to an article published by Reuters this past month, UPS, CSX Corp, JB Hunt Transport and Landstar System all reported higher than expected earnings for the first quarter of 2010 that reflect improved shipping demands.
Additionally, the logistics firm FTR Associates seemed to hint at a shortage of truck drivers at a trade forum earlier this year.
“As the marketplace expands, even slowly as we are forecasting, there will be a driver shortage,” said FTR Associates representative Noel Perry. He went on to forecast a driver shortage of 180,000 truckers in 2010 and upwards of 500,000 in 2011 if the economy rebounds as expected.

A spokesman for JB Hunt alluded to experienced driver competition increasing between companies, as all major trucking companies seem to be hiring at a much higher rate than they have in the past year and a half.
“While masked by a poor economy in recent years,” JB Hunt rep Greg Smith told Reuters, “these factors, combined with fewer new entrants coming through driving school and carrier training programs during the recession, will limit the ability of the industry to add capacity.”

New safety regulations imposed by the Federal Motor Carrier Safety Administration will take effect in 2010 as well and also affect the pool of capable truckers.  Programs are in place to monitor trucker’s driving records and history, threatening fleet suspension if the company’s drivers aren’t up to par with new standards.  The plus side is that safe drivers will definitely have an impact on commercial truck insurance rates and of course, overall highway safety.

Additionally, UPS is projecting some 25,000 drivers will retire in the coming five years.  So make sure your truck insurance policy is up to date and keep your driving record safe, because all signs are pointing to increased available opportunity for a slew of qualified truck drivers in the coming months.  With an unemployment rate of about 10% still in the US, the news for truck drivers couldn’t come at a better time.