67 WALL STREET, New York - August 18, 2014 - The Wall Street Transcript has just published its Transportation & Logistics Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Regulatory Issues in the Trucking Industry - Trucking Pricing & Capacity Dynamics - Truckload, LTL, Parcel, Rail and Intermodal - Technology Adoption and Infrastructure Investments - Retail and Industrial Transportation Demand - Trucking Labor Shortage - Tight Truckload Capacity
Companies include: Covenant Transportation Group (CVTI) and many more.
In the following excerpt from the Transportation & Logistics Report, the President, CEO and Chairman of Covenant Transportation Group, Inc. (CVTI) discusses company strategy and the outlook for this vital industry.
TWST: It's more difficult to recruit truckers these days. How does your company face that challenge; how are you dealing with the driver shortage?
Mr. Parker: We are not immune to it. It is the worst driver shortage that I've ever seen. It's always been an obstacle since deregulation in 1980 when a lot of trucking companies came into the industry, which brought more competition. I remember when I was 17 or 18 years old, working for my parents, it was a struggle to get truck drivers, but it doesn't compare to what the last 12 months in particular have been. Now it's gone to another level.
When I look back and I think about the past three or four years, there have been a lot of industry changes that are causing this. In 2010, when CSA came out, that new regulation eliminated a group of drivers that either dictated they no longer wanted to drive a truck, or the companies in the industry said we are not going to allow drivers with these lower scores to drive a truck for us. And then last year when the Hours of Service rule changes came out in July, utilization was reduced by 2% to 6% on miles that these drivers can drive, which means reduced pay for them.
In addition, they've got to take back-to-back 1 a.m. to 7 a.m. rest times. Sometimes these are happening in Des Moines, Iowa, or Los Angeles or Oklahoma City, places that aren't their homes. So the government is dictating that they spend a lot of time at a truck stop for the next 48 hours. It is no wonder that the industry has a driver-shortage problem. Because of this, we at CTG are continuing to just hire and retain the professional drivers to the best of our ability.
Could we use drivers today? Yes, we can use 150 of them today. It seems nobody has a magic potion or magic bullet that we can fire to get it there. We continue to raise their pay, but the professional drivers don't make the money they should. We've raised...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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