Driver shortages are particularly acute in oil refineries, tanker transporters

A year ago, the cholera virus was cut off from travel restrictions and the number of people working at home was cut off from the energy sector.

But now the economy is growing. Summer driving has fueled demand for fuel, and airline seats are filling up. With the usual high demand for driving and labor, truck and truck drivers are in greater demand than ever before.

Truck companies and trade unions say revenue shortages are having a significant impact, especially on special sectors, affecting revenue and growth.

Houston-based WM Dewey & Son Inc. The owner and Bob McDowell said the company had “tried everything” but could not find qualified applicants.

A.D. Founded in 1895, WM Dewey & Son is one of the oldest oil companies in Texas. He serves mainly Texas, Louisiana and Oklahoma.

“We take oil fields to the oil fields. We will increase our freight rates, which means a pay rise for drivers, ”McDowell said. “They make up the percentage of freight revenue. Drivers are increasing an average of $ 1,500 to $ 1,800 a week, we have increased entry bonuses and referral bonuses, but there is still no chance.

McDowell said the company was frustrated that it needed to build its fleet to increase revenue.

“We’ve heard that high cargo rates, individual owner-operators, prefer to get their own power and take loads off cargo boards,” McDowell said. “Instead of sharing your cargo revenue with a truck company, you keep 100%. That is a bad trend for transportation companies, which does not increase the number of drivers / operators.

The national space rate, represented by Truckstop.com’s seven-day average (see SONAR chart), has dropped to a high of $ 3.60 from a high of $ 5 on September 5. Fuel, starting September 12th.

National Dry Van Spot Rates (TSTOPVRPM.USA), was $ 3.21 during the week of September 12. Chart – FreightWaves SONAR (Click here to learn more about FreightWaves SONAR.)

The Texas Independent Manufacturers and Royalty Owners Association (TIPRO) reported that in June and July there were 1,400 job postings for licensed drivers in the Texas oil and natural gas industry, including 127 required advertisements for crude oil tanker drivers.

TIPRO is one of the largest energy trading associations in Texas, representing nearly 3,000 individuals and companies in the state’s oil and gas industry.

In August, there were 581 job advertisements and 110 posts for crude oil drivers for CDL drivers.

Texas’ Basin (exploration and production) The oil and gas sector is Aug. 2021, with 178,500 jobs, 2,800 jobs growth in June, and the fourth consecutive growth since April.

TIPRO will report strong job postings for August, mid-term (storage and transportation) and downstream watersheds (production and distribution) sectors as the workforce continues to grow in the Texas oil and natural gas industry.

According to TIPRO President Ed Longganker, the oil and natural gas industry has seen steady growth in job and job advertisements by 2021 as economic and global needs improve.

Demand for oil and natural gas is expected to grow in the next 6-12 months, despite a temporary delay due to the delta. “Polish foundations will prepare oil prices and the industry for strong returns over the next few years, which will have a positive impact on industry and economic growth for our country and our country.”

The largest vacancies in the special truck category could be petrol and liquid tanks reduced by about 42% among qualified driver applicants since 2019, according to the National Tank Truck Carriers (NTT), an industry trading group.

“The driver shortage is particularly acute in the fuel sector and the COVID-19 outbreak is exacerbated,” the NTTC said in an August study.

Tanker drivers can cost from $ 50,000 to $ 100,000 depending on their qualifications and owner operators or company drivers.

NTC research conducted a survey of major players in the country’s oil transportation industry, which represents approximately 25 percent of the oil spilled in U.S. statistics.

NTTC estimates that between 20% and 25% of tanker trucks are currently in use due to a lack of qualified drivers.

“From September 2016 to January 2021, petrol carriers and other heavy tractor trailers saw an average of one job for every nine job advertisements,” he said. “At the same time, Blue Coleta Manpower – a large pool of staff with a high school diploma or less – saw one employee for each post. To meet the growing demand, petroleum refineries highlight the problem of finding qualified professional drivers.

Some of the reasons for the shortage of qualified tank drivers are NTTC:

  • Old Manpower – 80% of truck drivers over the age of 45 and 23% of petrol drivers over the age of 55.
  • Age Requirements – Drivers must be 23 to provide domestic CDL 21 and hazam.
  • Certificates – TWIC training and certification required by each fuel or chemical loading facility.
  • Image Issues – Truck drivers’ lifestyle is still unpopular with the general public.

Ernesto Geitan Jr., the new chairman of the Texas Truck Association (TXTA), said that one of his biggest goals is to solve the driver shortage. Gaitan, CEO of Lapardo, Texas-based, became chairman of TXTA in July for Super Transport International.

“Driving is a big problem for the United States and Texas. We’re seeing more people coming into Texas, which means drivers are more interested in transporting more goods across the state, ”Gaitan said.

Gaitan said the trucking industry needs to do more to reach young people and show drivers that they can have a better life as soon as they start.

“We need to get to high schools, bring truck simulators to schools and fund education opportunities, fund truck schools and help people get CDLs,” Gaitan said. Getting out of high school and paying around $ 50,000 in some places is a good job and is something you can do.

Click for more FreightWaves articles by Noy Mahoni.

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