ILMA Compoundings June 2019 - 21

time it takes. "We have not had to entertain intermodal
due to coverage; however, the farther you go, the more cost
involved," she said. "We have noticed an increase with LTL
carriers using intermodal on a national basis, but again, this
is generally a slow mode of transportation."

The Driver Shortage
The driver shortage remains a primary concern of those in
the transportation and logistics industry. With more people
retiring and fewer getting into the business, there are fewer
drivers to go around, Moriarty said. "The main issue is how
do you attract millennials to a truck-driving job? Second is
how to do you retain them?" he asked.
Attracting drivers to the tank truck industry can be
particularly tricky. "Most folks are afraid. We haul chemicals. They're all commodities. Because it is a commodity, it
is going to be priced as a commodity," Moriarty said, adding
that bulk loads should be appropriately priced and should
be protected.
Delco said carriers are getting creative around pay to help
attract drivers. "It is not just more pay, but it's guaranteed
pay, detention pay and introducing salary pay versus just a
pay-per-mile plan," he said.
Carriers have been improving the overall compensation
and benefits package, including performance bonuses, that
they're offering drivers. They're also offering more regular
weekly pay and, in some cases, guaranteed weekly wages,
said Dave Osiecki, CEO of Scopelitis Transportation
Consulting.
Currently, sign-on bonuses for drivers can range from
$5,000 to $20,000, but Moriarty said Altom avoids offering
sign-on incentives. "We hope our equipment and reputation
speak for themselves," he said, adding that the carrier gets
most of its new hires through referrals and offers several
driver-comfort amenities as well as cash rewards.
Osiecki said carriers are also continuing to find ways to
increase drivers' home time and are investing in better and
newer equipment with more creature comforts, such as
better seats.
Allegheny Petroleum has increased incentives to new
driver hires by raising wages. Kudis said the company has
also broadened its prospective hiring protocol by reaching
out to driving schools. "We received good responses from
the driving schools and hope that this will, in turn, lead
to some good candidates," she said, adding that Allegheny
Petroleum's new fleet of tractors and tandem-axle straight
trucks with ISX 550 and 565 engines are always a good
selling point to any new hire.
Altom Transportation has a trailer-to-tractor ratio that is
roughly 3.5 trailers to every tractor and strategically places

them in key markets, so the driver doesn't have to wait,
which can help boost driver satisfaction. "The days of having
one trailer and one driver are over," Moriarty said, adding
that drivers don't want to wait while a trailer is cleaned.
"Every tanker we provide has to be clean, dry and odorfree to prevent contamination and also in terms of driver
convenience."
Moriarty said one of the most important things is for
carriers to listen to their drivers. "Most drivers will tell you it
isn't about pay," he said. "If they want to be home for their
daughter's graduation on Tuesday, you better make sure
they're home on Monday."
In addition to a driver shortage, the transportation
industry is facing a deficit of qualified mechanics. Altom
Transportation has five operable shops. "Our folks are so
qualified we do outside work," he said.

Shipper Requirements
As capacity tightens, shippers have to work harder to
become a shipper of choice. Companies need to focus on
meeting the needs of the drivers servicing their locations,
Costello said. "They do this first and foremost by not

ILMA Compoundings June 2019

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