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They can't. Trucking is an undifferentiated / commoditized service in a fragmented market. If one company increases pay to drivers, they can't increase rates
by stefan8r 6y ago
They can't. Trucking is an undifferentiated / commoditized service in a fragmented market. If one company increases pay to drivers, they can't increase rates to customers because they'll just shift their demand to someone cheaper.
As a results rates can't rise very quickly, which means that trucking companies can't really afford to pay drivers any better (obviously with some and slight exceptions, and only talking about US long haul trucking).
- nradov 6y agoAnd yet shipping prices rose quickly when there was a spike in diesel fuel costs several years ago. Trucking companies could solve some of their work environment related employee retention problems for free. For example by firing toxic managers, and treating drivers with a little more respect.