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US truck rates rise on driver shortage, railways seen as big gainers

US truck driver wages may approach US$100,000 a year in the next 24 months to attract enough to fill the shortage, according to one carrier executive, reported American Shipper. FAXTEXT = Railways are the key beneficiaries in higher priced truckload market. "The rate recovery is accelerating the shift to rail, which is currently estimated to be only about 10-15 per cent cheaper than truckload," said a press release from a Cowen and Company's private trucking carrier conference call.

One trucking executive said his company now pays drivers $0.40 per mile after recently raising the rate by $0.02.

Another said his company will raise wages 12 per cent over a number of years. "While concerns about driver shortages had not materialised in a huge way for much of the last couple of years, a worsening driver shortage appears to have become a reality over the last few months," he said.

Trucking executives said the shortage was first noted late last year and has carried through to 2014 and shows no signs of easing off, said the Cowan release.

Cowen reported that a few of the executives said the demand curve is similar to that seen in 2002, but that it doesn't approach the high demand experienced in 2004 and 2005.

High demand is driving up spot rates, but if it stays high, this impact on spot rates will push up contract rates as well, the executives said.