Driver Turnover at Large Truckload Carriers Ends 2020 at 90%, Dips Slightly For Smaller Carriers
Arlington, VA – The American Trucking Associations (ATA) latest Quarterly Employment Report is out and shows truck driver turnover in 2020 remained relatively stable.
According to ATA’s fourth quarter data, the turnover rate for truckload fleets with more than $30 million in annual revenue was unchanged at a 92% annualized rate, while the churn rate for smaller truckload carriers dipped just two percentage points to 72%.
“With the continued tightness in the driver market, it may seem surprising that the turnover rate didn’t jump in the fourth quarter as economic activity and freight traffic increased,” said ATA Chief Economist Bob Costello. “However, paradoxically, strong freight demand may have actually contributed to turnover staying steady by keeping drivers – particularly those engaged in the dry van and temperature-controlled sectors – too busy to change jobs.”
For the full year, the annualized turnover rate at large truckload carriers averaged 90%, down one point from 2019.
The annual average rate at smaller truckload fleets was 69% in 2020, down from 72% in the previous year.
The turnover rate at less-than-truckload carriers, typically much lower than the rate at truckload fleets, dipped two percentage points in the fourth quarter to 12% on an annualized basis – one percentage point off the 13% turnover LTLs averaged in 2020, ATA’s report revealed.
“With the impact of recently passed fiscal stimulus, and the quickening pace of vaccinations in the U.S., we are likely to see continued improvement in the economy which will drive not just healthier freight volumes, but are likely to create even more demand for drivers, tightening the market, so motor carriers need to remain focused on driver retention,” Costello said.