Is that 18-year-old driving your commercial truck?
Driver shortages have led to trucking companies exploring options to recruit new drivers, but is lowering the age requirement the best option?
We’ve all seen the headlines, television stories and social chatter discussing supply chain disruptions, which impact every industry. Even as pandemic restrictions are lifted, we continue to grapple with this issue, which is particularly evident in the trucking market.
A great majority of items travel by truck — from clothing and the materials used to make them, to furniture, appliances, foods and numerous other goods. Compounding these supply chain challenges, the trucking industry faces another serious problem: A severe shortage of drivers that continues to worsen.
In December 2020, the Federal Motor Carrier Safety Administration (FMCSA) reported that the number of drivers working for smaller carriers (up to 100 trucks) declined by 150,172, while larger fleets added fewer than 3,800 drivers. The loss of some drivers could be attributable to COVID-19 related issues, but as freight demands increase, many driver seats remain empty.
In response, the federal government, the FMCSA, the Labor Department and the American Trucking Associations (ATA) will pilot a commercial vehicle driver apprentice program for individuals between 18 and 20 years of age. Existing laws only allow this age group to drive intrastate; however, upon successful completion of the pilot program, qualified individuals would be approved to drive commercial trucks across state lines.
Questions remain regarding whether this program will provide a solution to the driver shortage or simply cause more concerns for a heavily regulated industry with low profit margins. Most importantly for business owners, what are the claims implications for training younger drivers?
The case for younger drivers
Although the transportation industry employs millions of people, 60% of all truck drivers are 45 or older, and in the next 10 years one-in-four will hit retirement age. According to the ATA, more than 3 million truck drivers were employed in 2020. That number reflected a 6.8% decrease from the prior year, a trend that continues in 2022.
Estimates from the ATA and other organizations put the number of empty driver seats at 80,000 today and 160,000 by 2030. These statistics are worrisome for the future of the transportation industry, every industry that depends on truck drivers and our national economy.
There are also strong indications that drivers are becoming less willing to do this type of work, which can be difficult due to many complicating factors. Challenges range from long hours away from home to erratic scheduling based on load availability, exacerbated by recent port delays or detention by shippers and receivers, and increasing regulatory demands on drivers and carriers alike. These factors do little to attract the next generation to a career in truck driving.
Safe Driver Apprenticeship Program
In January, the FMCSA established preliminary rules for the “Safe Driver Apprenticeship Program.” However, there are still a few hurdles.
Before apprentice drivers are allowed to operate a commercial motor vehicle alone, they’re required to go through two probationary periods with the motor carrier. During both periods, apprentices must be accompanied at all times by an experienced driver (as defined under the program), and the commercial motor vehicle being utilized must have certain technologies installed (e.g., forward-facing video cameras and a governed engine speed of 65 miles per hour).
In recent years, new technology has enabled trucking companies to become more efficient and assists in improved driver performance. Safety features such as video-based monitoring (internal and external cameras), automatic braking, collision avoidance systems and lane departure warning technologies have contributed to a reduction in accident frequency and costs when properly utilized, but they add to their costs.
Additionally, motor carriers assume responsibility during these probationary periods for ensuring that apprentice drivers are competent in the skills measured under the program, including speed and space management, safety awareness, hours of service compliance, backing up and maneuvering in close quarters, pre-trip inspections and the like.
The proposed apprenticeship program will last three years, after which the FMCSA will report its findings to Congress. Participating motor carriers must comply with reporting requirements, such as monthly reporting on the apprentice driver’s activity. As of March 30, 2022, the FMCSA has not announced when motor carriers will be able to apply for participation in the program.
The net result is that while this program does not increase the training requirements already imposed under the regulations, it does pass responsibility to the industry for tracking and measurement. Furthermore, the inherent costs of compliance, maintenance, data measurement and reporting are being imposed upon an already struggling industry.
However, the major issue is simply the unknown costs associated with putting 18- to 20-year-olds behind the wheels of commercial trucks, vehicles that a significant segment of the population perceives as larger, heavier, more difficult to drive and, therefore, more dangerous than passenger vehicles. In most states, these less experienced drivers cannot even rent a car under their own name, yet they are being placed behind the wheel of these large trucks, driving under the placard of the registered vehicle’s owner — the real party at risk for accidents caused by these drivers.
Claims Implications
Based on their lack of experience, we can expect claims frequency to rise and the risk of potential litigation to loom large. The National Highway Traffic Safety Administration (NHTSA) has compiled statistics that not only show motor vehicle crashes are the leading cause of injury and death among young adults, but also that most teen driver crashes are due to three critical errors: Lack of scanning, speeding and distractions. The National Safety Council goes further and reports that although teenage drivers make up only 3.8% of the estimated 230 million licensed drivers in the United States, they are responsible for approximately 12.4% of all fatalities.
Critical skills are required for commercial vehicle drivers. Allegations of negligent hiring, training and retention, which already play a role in any litigation targeting the industry, will likely be exacerbated by a potential increase in accidents attributable to younger drivers. Moreover, the plaintiffs’ bar will seek to utilize any statistics supporting allegations that the failure to properly train these drivers, together with their younger age, is prima facie evidence of an industry that “puts profits over safety” and needs to be brought to account.
Catastrophic claims and injuries caused by younger drivers are likely to increase the potential for nuclear verdicts, the magnitude of indemnity payments and the expense costs incurred while investigating and managing claims, which will lead to increased insurance premiums across the industry. The costs of replacing equipment, and replacing and training new drivers, compound the financial impact on small- to medium-sized motor carriers, many of which are already operating on razor-thin profit margins.
The ATA has already advised that the additional data collection, reporting and monitoring requirements may not only delay implementation, but could also create more problems for small- and medium-sized carriers. This could prevent those companies from participating in the program, thereby reducing the efficacy of the proposed solution. Finally, even if pursued, this pilot program will only be available to qualified motor carriers, who must apply on the FMCSA website, and will be limited to 3,000 drivers.
Alternative solutions
Truck driving has long been considered an entry-level position, which contributes to high turnover and low retention. About 40% of drivers stay on the job for less than a year, and only 27% remain drivers for two years, according to the ATA.. While targeting younger populations is an option, there are several alternative solutions the industry could implement now.
For example, while the average age of truck drivers is close to 50, 83% of these drivers are men, and 64% are white or Caucasian. Improving recruiting practices aimed at the target audiences of women, veterans, minorities and the immigrant community could potentially open up currently untapped career opportunities. While improving recruiting and retention practices may not offer a total panacea, it will create additional employment opportunities for those previously underrepresented populations.
There are a number of additional strategies trucking companies can employ to address the driver shortage problem that would not involve major delays, such as:
- Ask vendors and service providers — including insurance carriers and agents — to help spread the word and assist with recruiting new drivers.
- Seek out community “trim-tabs,” influencers who can speak of the opportunities provided by a career in trucking.
- Improve available training options and opportunities for advancement to encourage trucking as a career.
- Review compensation — including ensuring that workers can make a living wage while training.
Recruiting candidates who reflect the broader population and improving the driver situation can only yield positives. When people work in an industry that values them and reflects their values, it inures to the benefit of all.
People who take pride in their jobs and careers take greater ownership of their tasks. It is reflected through pride in their work, higher percentages of safety compliance and lower loss costs and insurance premiums, all of which the insurance industry can get behind. By working closely with these clients — serving their needs individually and as an industry — and working with organizations such as the FMCSA, NHTSA and NCS, we can rise above the current situation and help resolve the driver shortage.
Doug Betkowski (doug_betkowski@gbtpa.com) is a senior VP and transportation practice leader for Gallagher Bassett Specialty, with 35 years of claim and litigation management experience. His role includes managing GB’s Major Case Unit, a specialized team of transportation claim professionals focused on complex and high-exposure claims.
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