SPECIAL WHITEPAPER


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In fact, ‘shortage’ is now too trivial a term. Consumers are waking up to a reality which has been challenging supply chains so much that a recent article in The Times newspaper in the United Kingdom stated that lorry drivers working for one on the country’s leading supermarket chains can now earn £53,780 (€62,500) a year, considerably more than the average salaries of schoolteachers (£40,880), solicitors (£43,190) and architects (£42,930).


What plans do you have in place to retain drivers?


Regular increases in salaries


Flexible working hours


Bonus


Opportunities to acquire shares in the company


0


33.9% 32.6% 29.5%


4.0% 5 10 15 20 25 30 35


So, it’s not all bad news if you love driving trucks. Sadly, though, if you do, you’ll soon find you’re running low on colleagues in your chosen profession. A new whitepaper by Ti Insight, a leading logistics and supply chain market research and analysis company, looks at one of the biggest risks to supply chain resilience in Europe…


Driver shortages have been affecting the global road freight market for around 15 years. The issue comes as the pool of truck drivers is contracting but demand for transport is rising. As global economies have grown, the demand for transport has increased, which has caused a strain on personnel resources. As this happens, labour costs are also rising, which is increasingly putting pressure on road freight operators and freight rates. The reasons behind the growing shortage are plentiful as are the solutions, but the implementation is difficult and lengthy.


While the COVID-19 pandemic has challenged supply chains and logistics in unprecedented ways, it has further exacerbated the already alarming issue of driver shortages. Even before the pandemic was a serious cause for concern in the industry, the lack of drivers in the road transport industry was at an all-time high with many of its underlying issues being long-term challenges. Factors such as an aging workforce and insufficient numbers of new recruits, due to working conditions and image issues of the profession, have plagued the industry.


According to Ti’s estimates, in 2020, the European road freight industry had a driver shortage of around 400,000 drivers.


Truck Driver Shortage Across Europe


all start from the road transport companies. Then there are longer term solutions which sometimes require government or institution intervention, such as recruitment programmes for females and ex-military personnel, raising awareness of driving careers in schools, training programmes, redefining regulations, and improving parking facilities for rest breaks.


The use of apprenticeships and training schemes to attract young people


The most heavily impacted European countries are Poland, the UK and Germany. The UK is in a particularly difficult position as it is not only grappling with Brexit, but it also saw European workers leaving the country over the course of the pandemic, as fears over lockdowns grew.


Strategies to mitigate driver shortages


The driver shortage is a multi-layered problem. There has been much debate about the strategies needed to mitigate this ongoing challenge across Europe. There are short-term solutions such as making truck driving a more attractive job by increasing pay, introducing bonuses, giving opportunities to buy shares in the company and flexible hours, which can


The offer of apprenticeships to encourage young people into the profession has been adopted by many companies. These schemes often include training as well as a healthy salary. Some employers have also set up ‘academies’ and training schools which include covering or contributing to the costs of training, often regarded as an expensive entry requirement.


The legal age to drive an HGV varies throughout Europe, which can be another barrier to entry. Nagel Group in Germany is one of the companies which has recognised this problem and created an apprenticeship scheme which employs young people and gives them industry experience before turning 21. Another initiative aimed at attracting young drivers is the partnership between Logistics UK – formerly the Freight Transport Association – and Think Logistics, an arm of the educational charity Career Ready. It aims to build links between schools, colleges and employers to communicate the opportunities a career in logistics presents to young people.


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