Labor and shipping shortages are among the significant challenges the transportation & shipping industry faces. They're interrelated with each other. For example, labor shortages give rise to shipping shortages and sometimes vice versa. Businesses need help getting their goods delivered to customers due to a lack of transportation labor and the shipping capacity of transporters. Here, we're going to discuss some significant reasons for Labor and shipping shortages with statistics.
Reasons for Labor Shortage in the trucking industry
When we talk about labor in the trucking industry, the first thing that comes to our mind is truck drivers. Truck drivers are vital in the transportation industry because they drive vehicles to relocate goods. According to the official reports of the American Trucking Association, the trucking industry was facing a shortage of 80000 truck drivers in 2021. This number is expected to increase to 90000 by the end of 2022. Experts warn that if the current trend of labor shortage in the transportation industry continues, the lack of truck drivers could go up to 160000 by the end of 2030. The statistics are similar for other laborers and employees in the trucking and transportation sector.
Let's take a look at the common reasons for the increasing labor shortage in the transportation industry:
- COVID-19 Pandemic
The covid-19 pandemic is considered the most significant factor for the sharp increase in labor shortage. Almost all people associated with the trucking industry are affected by the impacts of the pandemic. Long-haul drivers cannot perform their jobs due to high risk and susceptibility to coronavirus. Laborers working in warehouses and the transportation industry could also be exposed to coronavirus while handling, packaging, and loading the goods. Unprecedented lockdowns and social distancing protocols have further exacerbated the labor shortage problem.
- Busy and unhealthy lifestyle
Due to high shipping demands, trucking employees must work long hours, directly impacting their lifestyle and health. Recent statistics show that many laborers leave the trucking industry due to work-life imbalance.
- Low pay
As inflation soaring up consistently, transportation laborers find it extremely difficult to meet their financial expenses in their current pay. That's the reason they leave the trucking industry in search of higher wages.
- Aging demographics
The median age of a trucker is 46 years, after which they consider retirement. The previous generation of transportation laborers is continuously retiring, causing a labor shortage that can only be filled by hiring young laborers.
Reasons for Shipping shortage
- Rising fuel prices
Truckers cannot deliver the required shipping capacity due to increasing fuel prices, Leaving drivers forced to increase the freight rates, decrease shipping capacity, and even cease operations in areas where they're losing.
- Port Congestion
Port congestion leads to container shortage which directly affects the ability of truckers to ship on demand. Container shortage is considered a root cause of shipping shortage.
- COVID-19 pandemic
Due to prolonged lockdowns and healthcare emergencies, businesses are experiencing shipping shortages and facing difficulties getting their freight delivered to customers.