Three trucking companies belonging to the Top 250 in the U.S. have announced pay increases for their drivers.
American Central Transport, Cargo Transporters, and K&B Transportation join several trucking companies that will increase or have boosted their drivers’ salaries. Final earning reports for the year are a sharp contrast from mid-year reports of lower revenue. Almost all publicly traded carriers reported income and revenue increases, resulting in gains for shareholders.
The driver pay increase was expected following the enforcement of the ELD mandate.
Starting February 28, American Central Transport increased the pay for independent contractors and company drivers. The company also implemented a new bonus incentive for company drivers.
ACT owner-operators would receive an additional two cents per mile. Company drivers would get an across-the-board pay raise. ACT drivers can also earn up to $500 in monthly bonuses.
Drivers are entitled to $150 once they have driven 9,000 miles in a month. The amount will increase for every additional 1,000 miles, up to a monthly payment of $500 for 12,000 miles.
Drivers and new truck driving school graduates of Cargo Transporters will enjoy an increase in pay starting April 1.
Drivers with one or more years of over-the-road experience will start at 46 cents per mile.
Driving school graduates will receive 25 cents per mile during their eight-week training and 44 cents per mile afterward. Six months from the date they were hired, a one-cent hike awaits them.
K&B Transportation will increase the starting pay for company drivers on May 7.
The Nebraska-based company will raise the pay of over-the-road drivers in its Midwest and national operations by five cents per mile.
Drivers already with the company will also receive a 5-cent hike. The details are below.
- Six months to one year — from 46 cents per mile to 51 cents per mile.
- One year to two years — from 47 cents per mile to 52 cents per mile.
- Two years to five years — from 48 cents per mile to 53 cents per mile.
- Five years and more — from 49 or 50 cents per mile to 54 cents per mile.
K&B said new hires are guaranteed $1,250 as weekly minimum pay with 2,500 guaranteed miles. Also, there will be a bonus package reward system for drivers with clean inspections, referrals, and more.
Driver wage increase expected
National Transportation Institute President Gordon Klemp also predicted that with freight demand climbing and contract rates on the rise, driver pay should go up in the months ahead.
Klemp, who is a driver pay analyst, said in a conference call with investors that if carriers could secure rate increases in contracts with shippers, they could pass some of those gains to drivers.
Klemp didn’t say how much the increase would be but noted that driver pay would climb with freight rates.
The carriers’ reports differed. Some reported operating income while others cited net income.
Below are earnings reports from publicly traded large truckload carriers.
As the trucking industry continues to evolve and become more efficient with the help of technology such as electronic logging devices, carriers and drivers are expected to increase their earnings. Apart from increased revenue, modern-day ELDs also help carriers minimize their administrative burdens, increase productivity, and reduce operational cost.
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