Rising driver pay is typically a sign of improving truckload fundamentals. While it is still early in the upcycle, some carriers are implementing pay hikes to keep drivers happy and their equipment seated.
Joliet, Illinois-based carrier GP Transco announced Monday that it has increased pay for all company drivers by five cents per mile. The rate bump pushes the upper end of its pay scale to 72 cents per mile. Top performers will also have a chance to earn another 6 cents per mile in incentive pay.
All in, a first-year driver with the company now has a chance to make nearly $100,000.
“As the freight market continues to move in the right direction, we are excited to pass that momentum on to our drivers,” said Amos Savickas, head of operations at GP Transco. “Our drivers showed patience, professionalism, and commitment throughout a very challenging market, and this increase is a direct reflection of how much we value their work.”
The company is also enhancing driver home-time by offering 48-hour weekend breaks after two weeks on the road, improving upon the previous three-week requirement.
A supply-led trucking recovery has prompted the need for enhanced driver pay and perks.
Heightened regulatory enforcement has been purging noncompliant drivers from the market since last fall. It started with tighter enforcement of non-domiciled CDL rules and English-language proficiency requirements. Authorities also took aim at questionable driver schools and ELD providers.
More recently, federal authorities have been strictly enforcing cabotage rules and revoking visas. Further, the impact the Supreme Court’s broker liability ruling will have on driver vetting and insurance requirements is still being contemplated across the industry.
Dwindling supply has had a pronounced impact on pricing, with many publicly traded carriers saying contract rates set earlier in this year’s bid season are no longer valid. Carriers appearing at investor conferences in recent weeks have flagged the potential for double-digit rate increases this year and next.
Many public carriers have also noted the need for driver pay increases in certain geographies and on certain lanes. However, the group is looking to restore margins after a nearly four-year downturn. Enterprise-wide pay hikes are not yet in the works for this group, as they believe better asset utilization and load selection will increase paid miles and ultimately driver pay.
Dubuque, Iowa-based Hirschbach announced its over-the-road company and lease drivers will see a total pay increase of 10 cents per mile in the coming months. In addition to the increase, it is also planning other adjustments across its regional, local and dedicated operations.
“This is a significant investment in our drivers and a reflection of the value they bring to Hirschbach every day,” said CEO Richard Stocking. “Our drivers are the backbone of our operation, and we’re committed to ensuring they are recognized and rewarded for the critical role they play in serving our customers and moving our business forward.”
More FreightWaves articles by Todd Maiden:
- Cass sees freight volume recovery in second half of year
- Routing guides are crumbling: ‘It is different this time’
- Truckload carriers eyeing multiyear rate upcycle
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