Motor Carrier Effectiveness: Feedback Report January 2005
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2005-01-01
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Edition:Feedback report; Jan. 2005.
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NTL Classification:NTL-FREIGHT-Freight Planning and Policy;NTL-FREIGHT-Trucking Industry;
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Abstract:• Questionnaire data were obtained from 326 top managers of large trucking companies; these data were supplemented with information from the TTS Blue Book of Trucking Companies and the SAFER database.
• Fifty-six percent of the companies in the sample were Truckload (TL) carriers, 27% were Specialized Commodities (SC) carriers, and 17% were Less-than-Truckload (LTL) carriers.
• The average length of haul was 500 miles.
• On average, drivers had been with the company for 3-4 years.
• More companies, particularly in the TL sector, had computers on-board the rigs than did four years ago.
• Driver quit rates averaged 15% overall, and were higher among TL and SC carriers than among LTL carriers.
• Driver discharge rates were lower (3% overall) than before, and were also lowest in the LTL sector.
• Turnover rates were higher in this study than in our previous study.
• The major reported reasons for quitting were pay and benefits, the nature of the driving job, and relationships with supervisors/dispatchers.
• TL and LTL carriers showed marked differences in performance dimensions. SC carriers resembled TL carriers more often than they did LTL carriers.
• LTL carriers showed better performance on TTS Blue Book dimensions than did TL or SC carriers.
• Most companies reported being better than they were four years ago; this assessment was not supported by TTS Blue Book information.
• Drivers were paid an average of $37,000/year, and pay and benefits were generally better in LTL companies than in TL companies.
• Seniority, performance, and safety were significant considerations in determining driver pay.
• Compensation innovations are rare in the trucking industry.
• Drivers were recruited most often through walk-in applications, newspaper advertisements, and employee referrals.
• Companies hired about one of every four driver applicants.
• Drug tests, reference checks, background checks, and medical examinations, were the most commonly used selection techniques.
• Previous driving record was the most significant criterion for hiring drivers.
• Driver training was most likely to focus on safety issues.
• LTL companies were more likely to be unionized
• Unionized companies experienced few strikes, lockouts, or unfair labor practice charges.
• Unionized companies were larger, had better pay and benefits for drivers, and better financial performance overall.
• Focus on compensation and benefits, performance appraisals, and staffing issues is recommended to improve driver recruiting and retention.
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