India 'a critical growth market' for FedEx as it expands air express network
FedEx Express is putting itself on a stronger footing to tap into India’s booming trade ...
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
Hauliers must recalibrate their route networks to alleviate the strain on Europe’s beleaguered road transport sector caused by the ever-worsening driver shortage.
According to the IRU, the shortage across Europe exceeds 380,000, accounting for approximately 10% of demand, with expectations that it will increase to 14%, with hauliers and governments seeming unable to act.
Martin Gussinklo, SVP of FedEx Express’s European road network, told The Loadstar: “There is no one cause, nor one solution to the driver shortage; but we know a major issue is the reticence of the younger generation to take jobs that mean they are away from home for long periods.”
Data from the IRU suggest this ‘aging-out’ in Europe’s haulage sector could lead to a “demographic time-bomb” as the continent boasts the highest average driver age, 47, in the world.
Mr Gussinklo said everything from hiring rates to conversations in the community showed there had been a reassessment on “work/life balance” and the younger generation had decided the job needed to change to attract them back.
“This is really the biggest issue, it is this change in mindset between the generations that is worsening the driver shortage,” he continued. “We cannot alter that, so instead we have to amend how we plan our routes, and this is where we are seeing real potential.
“It would mean breaking trips down, so drivers take on legs that allow them only to be away for a single night at most.”
The IRU has also shown some support. Director of EU advocacy Raluca Marian told The Loadstar it was certainly an “interesting idea for large operators”, and that similar schemes were being considered by some of the IRU’s member associations.
“Most companies in the sector, however, are small and medium-sized firms and shorter-distance driver rostering could be hard for them to implement,” she added.
“With many issues behind this, we need to keep pushing on all fronts to make the profession more attractive, including more safe, secure parking areas, lower qualification age, training incentives and improving how drivers are treated at loading and delivery sites.”
FedEx will certainly have its work cut out if it is to make the plan work, with just 6% to 7% of the world’s total driver workforce aged 25 or younger and with less than 3% of truck drivers being women.
Reiterating that he did not believe there was a “single solution”, Mr Gussinklo said the company also had other programmes in the works, including sourcing drivers internally, and was “developing programmes that would allow our staff working in handler positions to train to become drivers”.
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