Trucker Shortage Could Mean More Expensive Goods

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Every link in the supply chain is a crucial one, as this issue proves once again. And long-haul trucking is not an easy job. Suppliers realize this, but often the consumer does not.

The answers to this problem are complex. It’s not easy to become a long-haul trucker. The pay is often reasonably good, but, in some regions especially, not as good as some may imagine. To be a long haul trucker calls for days away from home, eating, living and sleeping on the road. Dealing with increased rules and regulations in regards to record keeping and that does not even begin to address the actual hassles of the driving itself. Even if the money is ‘good’ it’s a high burnout job that is a tough sell.

Trucker shortage could mean more expensive goods

The biggest companies in America face the same dilemma: A truck driver shortage is squeezing profits.

Hasbro (HAS), Kellogg (K), Mondelez (MDLZ), Coke (KO), and Monster (MNST) have told Wall Street in recent weeks that higher freight and shipping expenses are eating into their profit margins. Rising costs will force them to absorb the hit or raise prices.

For these companies and hundreds of others, it’s getting more expensive to move goods around the country because qualified truckers are in short supply in a tight labor market.

“There are more attractive options out there for potential truck drivers in a strong economy,” said Gus Faucher, chief economist for PNC Financial. “It’s difficult to find new workers to expand.” Read More

 

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