Truckload carriers GP Transco and Hirschbach have announced driver pay increases, signaling tightening capacity as regulatory enforcement reduces driver supply and spot rates rise, according to FreightWaves.
Regulatory Squeeze on Driver Supply
The pay hikes come as heightened regulatory enforcement has been purging noncompliant drivers from the market since last fall, FreightWaves reported. Authorities have tightened enforcement of non-domiciled CDL rules and English-language proficiency requirements, targeted questionable driver schools and ELD providers, and more recently strictly enforced cabotage rules and revoked visas. The impact of the Supreme Court’s broker liability ruling on driver vetting and insurance requirements is still being contemplated across the industry.
Carrier Pay Details
Joliet, Illinois-based GP Transco increased pay for all company drivers by 5 cents per mile, pushing the upper end of its pay scale to 72 cents per mile. Top performers can earn an additional 6 cents per mile in incentive pay. A first-year driver now has the potential to earn nearly $100,000, according to Amos Savickas, head of operations at GP Transco. The company also enhanced driver home-time, offering 48-hour weekend breaks after two weeks on the road, improving upon the previous three-week requirement. “As the freight market continues to move in the right direction, we are excited to pass that momentum on to our drivers,” Savickas said.
Dubuque, Iowa-based Hirschbach announced a total pay increase of 10 cents per mile for its over-the-road company and lease drivers, with additional adjustments across its regional, local, and dedicated operations. CEO Richard Stocking stated, “This is a significant investment in our drivers and a reflection of the value they bring to Hirschbach every day.”
| Carrier | Pay Increase | Pay Scale Top | Incentive | Home-Time Improvement |
|---|---|---|---|---|
| GP Transco | +5 cpm | 72 cpm | +6 cpm | 48-hr weekend after 2 weeks (was 3) |
| Hirschbach | +10 cpm (OTR) | N/A | Various adjustments | N/A |
Market Impact and Rate Outlook
The supply-led recovery has also impacted pricing. Many publicly traded carriers say contract rates set earlier this year are no longer valid, FreightWaves reported. Carriers at investor conferences have flagged the potential for double-digit rate increases this year and next. However, enterprise-wide pay hikes are not yet planned by larger public carriers, who aim to improve asset utilization and load selection to increase paid miles and driver pay indirectly.
Shipper and Operator Implications
For shippers and logistics operators, the driver pay increases signal a tightening market. With fewer compliant drivers and rising rates, securing capacity may become more challenging and expensive. Operators should monitor regulatory developments and the upcoming bid season for further rate adjustments. The broker liability ruling could further impact driver vetting and insurance costs, adding upward pressure on rates.
Watch List
Upcoming factors include further enforcement of cabotage rules, the ongoing impact of the Supreme Court’s broker liability ruling, and the outcome of the next bid season, which could confirm double-digit rate increases. Additionally, any new regulatory actions targeting driver qualifications will further constrain supply.
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