The third-quarter turnover rate at large truckload carriers fell 11 percentage points to 87%, marking its lowest point since the first quarter of 2017 when it was 74%, American Trucking Associations reported.
At the same time, the churn rate at smaller truckload carriers — fleets with less than $30 million in annual revenue — was flat, and less-than-truckload carriers experienced a single-digit decrease in turnover.
The decline at the large truckload carriers comes after two quarterly increases last year that saw the churn rate climb to 98%.
Hikes in driver pay and softer freight volumes were factors behind the decline, ATA Chief Economist Bob Costello said.
“Large pay increases fleets have been offering appear to be working, and drivers are remaining with their current carrier. We did see a softening of freight markets in the third quarter from the incredibly strong pace it had set earlier in the year. Historically, softer freight volumes lead to lower driver turnover,” he said.
In the third quarter, the turnover rate at small carriers remained unchanged at 72%, and the churn rate at less-than-truckload carriers fell 4 percentage points to 10%. — Transport Topics