ARLINGTON, Va. — The annualized turnover rate for over-the-road truckload drivers held steady in the last three months of 2020, according to the American Trucking Associations’ Quarterly Employment Report.
The turnover rate for truckload fleets with more than $30 million in annual revenue was unchanged at a 92% annualized rate during the year’s fourth quarter, while the churn rate for smaller truckload carriers dipped two percentage points to 72%.
“With the continued tightness in the driver market, it may seem surprising that the turnover rate didn’t jump in the fourth quarter as economic activity and freight traffic increased,” said Bob Costello, chief economist for ATA. “However, paradoxically, strong freight demand may have actually contributed to turnover staying steady by keeping drivers — particularly those engaged in the dry van and temperature-controlled sectors — too busy to change jobs.”
The turnover rate at less-than-truckload carriers, typically much lower than the rate at truckload fleets, dipped two percentage points in the fourth quarter to 12% on an annualized basis — one percentage point off the 13% turnover LTLs averaged in 2020.
For the full year, the annualized turnover rate at large truckload carriers averaged 90%, down one point from 2019. The annual average rate at smaller truckload fleets was 69% in 2020, down from 72% in the previous year.
“With the impact of recently passed fiscal stimulus, and the quickening pace of vaccinations in the U.S., we are likely to see continued improvement in the economy which will drive not just healthier freight volumes, but are likely to create even more demand for drivers, tightening the market, so motor carriers need to remain focused on driver retention,” Costello said. “While the driver shortage temporarily eased slightly in 2020 during the depths of the pandemic, continued tightness in the driver market remains an operational challenge for motor carriers and they should expect it to continue through 2021 and beyond.”
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
