High demand and a lack of qualified drivers has pushed truckload carriers to raise pay substantially over the past year and a half. Wage increases have helped fleets maintain size through the pandemic, but few have been able to grow organically. Following a round of large pay increases in 2021, it appears the industry will continue to push pay rates higher to address a labor shortfall.
Two more fleets announced pay hikes this week.
Kaukauna, Wisconsin-based Midwest Carriers announced a 9% pay increase for over-the-road drivers. The pay bump takes average annual pay to a range of $86,395 to $92,250. Average annual pay for the top half of the company’s over-the-road drivers increased to $97,550.
“As a driver-focused trucking company, we know that taking care of our drivers is job number one,” said President Eric Van Handel. “This increase is our way of showing how much we value their hard work and dedication.”
The company also announced a 9% reduction in health insurance premiums for 2022.
Midwest Carriers operates a fleet of 166 trucks and 455 trailers, hauling temperature-controlled and dry freight.
TFI International (NYSE: TFII) affiliate CFI announced Wednesday it increased driver pay in its truckload and temperature-controlled units by two cents per mile. Drivers will also be eligible for incentive bonuses tied to safety, productivity and years of service.
The Joplin-Missouri-based company said it plans to take delivery of 770 new Kenworth tractors and 250 new trailers in 2022, moving its average tractor age to less than 2 years. It also plans to invest $3.75 million in additional fleet upgrades during the year to attract drivers to the company.
“We continue to invest in our people with modern, fuel-efficient equipment, including options and accessories most in demand by professional drivers supporting safe operations and driver comfort,” said CFI President Greg Orr.
CFI employs nearly 3,000 drivers for its fleet of more than 3,900 tractors and 10,000 trailers. The company also utilizes capacity from an owner-operator network of 700.
“We recognize our professional drivers as the ‘captain of their ship’ who pick up and deliver on time and safely, as promised to our customers,” Orr said. “As such, we are implementing driver pay increases that align pay across our services with an attractive compensation package.”
Click for more FreightWaves articles by Todd Maiden.
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