Conventional wisdom says that the United States is suffering from a massive truck driver shortage. While it’s true that truck drivers are a scarce resource, it’s also the case that truck drivers’ time is frequently not respected and is significantly underutilized. The biggest culprit? Long delays at shippers’ loading docks.
David Correll, former lead author of the State of Supply Chain Sustainability report, was a research scientist at MIT’s Center for Transportation & Logistics from many years. He now works for the U.S. Department of Transportation.
A truck driver who goes by the handle Long-Haul Paul once told me that the worst thing about driving a truck is that “the job can make a liar of you when you didn’t want to lie.” He explained to me that, like all of us, truck drivers have places to go and promises to keep between delivering their loads. The truck driver might promise to his daughter to be home in one week’s time for her birthday. But then, as Paul put it to me, “some knucklehead has got two pallets of cheddar that you’re waiting on, and he’s still in Kenosha…” “You make promises,” Paul explained, “and for whatever reasons there’s a systemic failure that prevents you from keeping your promise. That’s hard.”
At the MIT FreightLab, we recently launched the Driver Initiative to look at utilization and quality of life of America’s truck drivers. We’ve interviewed dozens of truck drivers like Long Haul Paul, gone on ride-alongs with drivers as they made their appointed rounds, and systematically reviewed the electronic working logs of approximately 4,000 truck drivers from multiple companies over the years 2016 to 2020. What strikes us first? How much of American truck drivers’ valuable driver time appears to be squandered every day by delays during pickup and delivery at shipper facilities.
“You could be there for six, eight, ten hours. I was at one customer for as many as 18 hours,” a 22-year veteran of the industry named Mark told me. Another driver named Desiree confirmed the problem to me from her own experience too: “Recently, in one week, I had two places I went that kept me 10 hours. I have unloaded freight. I have loaded freight. I've loaded these trailers. I know how long it takes. It doesn't take 10 hours.”
Our own research suggests that shippers themselves are not blind to this problem. To get another perspective on this issue, the FreightLab convened a small group of logistics and shipping managers to learn about the shippers’ perspective on driver detention. First, we surveyed the group regarding the detention experiences that they have observed at their own shipping and receiving facilities. Those results are shown below in Figure 1. The shippers corroborated what the drivers were telling us: Long delays can, and do, happen regularly. In Figure 1, we’ve fit normal distribution curves to the time estimates provided by the shippers we surveyed. In other words, the curves show the roughly estimated probability of a pickup or delivery taking a certain amount of time based on the information we received from the focus group. “Live loads” (pickups or deliveries where the truck driver must wait on the premises for the truck or trailer to be unpacked or packed) are by far the worst offenders, with an average detention duration of 2 to 2.5 hours, (the top peak of the orange and black curves). Drop-and-hook style loads (pickups or deliveries where the driver can drop off or pick up the trailer in the yard and leave) are much faster and are typically completed in 30 to 45 minutes (the peaks of the red and blue curves). Notice the distribution around the mean for “live load destination;” unlike the distribution curve for drop and hook deliveries, the curve for live loads are much longer and flatter, meaning that the time is far less predictable. Among the shipper networks we surveyed, live load destination appointments are almost equally likely to last two, three, or four hours! Can any system be truly optimized with that kind of variability? Like all of us, every driver has somewhere to be next—be it a personal or professional obligation. Every “trucker’s keeper” (such as a shipper, retailer, third-party logistics provider, or distributor) that passes along their own problems or inefficiencies to the driver also passes them along to the driver’s family and the driver’s other customers too.
The top right-hand chart in Figure 1 shows the longest delay that the shippers recalled seeing recently in their own network with each circle representing one respondent’s answer. By the shippers’ own estimates, live load destination deliveries have lasted at the maximum 10, 20, and even 30 hours. Although our focus group for this survey was relatively small, representative estimates corroborate the horror stories the drivers shared. America’s valuable and scarce truck driver resource is far from optimized in today’s supply chains.
The consequences of lost time
An astute reader might ask, “How can this be?” Headlines abound in the United States—and other countries too—that there is a massive shortage of truck drivers. That is, that there are too few truck drivers working to carry the loads generated by our modern economy. But if that’s the case, shouldn’t the drivers that we do have be working all-out to cover all that demand for freight transportation?
This wasn’t what we found when we peered into truck drivers’ electronic work logs. Figure 2 summarizes the electronic work logs of approximately 4,000 long-haul truck drivers collected intermittently over four years into “box-and-whisker” plots. Within the colored boxes are the middle 50% of all observations of driving hours per calendar day, organized by the days of the week. Within the whiskers extending up and down from those boxes are the highest 25% of daily driving hours and the lowest 25%, respectively. Sets A1 and A2 are from one mid-sized trucking company and represent 2,216 drivers. Set B is from one very large national carrier and represents 1,530 drivers. All in all, Figure 2 summarizes approximately 310,000 actual truck driver work days. In dashed lines across the top of Figure 2 is the federally set driving maximum for freight-carrying truck drivers of 11 hours per day.
As my students and I at the MIT Center for Transportation and Logistics analyzed this data, we found that long-haul truck drivers across these companies and across four years, all drove on average about 6.5 to 7 hours per calendar day. Truck drivers in the United States are legally allowed to drive for 11 hours per day. This unfortunately implies that 4 to 4.5 hours of driving time, or roughly 35% of America’s daily trucking capacity is left on the table every day. Even in a time of perceived shortage.
The first consequence then of lengthy and unpredictable delays at shipping and receiving appears to be severe underutilization of the valuable driver resource. Where do the 4 to 4.5 missing hours of daily freight carrying capacity go every day? It appears that, at least some of the time, that valuable capacity currently withers away at shippers’ own facilities as truck drivers wait for hours on end to be called up for loading and unloading. Another way then of seeing the challenge of the perceived driver shortage is not as a problem of headcount, but rather as a chronic crisis of underutilization.
What is to be done?
This problem is not unsolvable. Supply chains are, after all, run by and for human beings. And we human beings are remarkable in our consistent ability to solve the problems that we are effectively incented to solve. Shippers should know that incentives to improve their throughput times are coming. Concurrent with our research efforts, entrepreneurial solutions have emerged in this space. Information aggregators like Dock 411 and True Load Time collect truck driver experiences and wait times at different shipping locations across the United States. Some digital freight brokerages have also been offering truck drivers the opportunity to rate the shippers that they service—similar to Uber drivers’ ratings of customers. Presumably, shippers whose ratings lag in these aggregated systems will face lower tender acceptance and higher rates from carriers. It is also possible that the federal government could get involved in codifying such incentives too. As I recently testified before Congress in October 2022, the government could award supply chain health letter grades to American shipping facilities, similar to the board of health sanitation letter grades that are posted outside restaurants. Lower letter grades might deter carriers away from substandard performers, and thereby apply effective market pressure for shippers to make improvements.
Luckily for shippers, our data suggests that such improvements are within reach. In fact, they already happen every day. Across multiple data sets representing many thousands of delivered loads, we’ve observed a curious but consistent result. The time that a truck is made to wait for loading and unloading is consistently predicted by its time of arrival and is inversely related to the number of trucks arriving at the same time. Put differently, it’s the exact opposite problem that you or I might experience trying to get a drink at a busy bar. In freight appointments, when everyone wants a dock door, everyone gets a dock door. This tends to happen in the mornings. Later arrivals, particularly those after typical “first shift” work hours at the distribution center or warehouse represent the long trail of trucks that are more often made to wait for extended periods of time. The problem then is not a hardware problem. It’s a software problem. Our existing facilities can go faster. We see it every day. But we only staff and manage to do such quick loading and unloading during the most convenient arrival times. For shippers, this means that adjusting staffing and warehouse policy to accommodate later arrivals—including those that come after the scheduled appointment time—could go a long way towards fixing the problem of driver detention and chronic underutilization.
Dignity matters
But it's the human factor of this problem that troubles me the most and actually keeps me up at night. Have you ever been in an airport when a flight delay is announced? In these cases, the business travelers and vacationers are usually given a new boarding time and allowed to wait in the comfort of the terminal with full access to restaurants, shops, and professionally cleaned bathrooms for a few brief hours until they are re-planed. During the delays that truck drivers in the U.S. endure, even basic human necessities are not always available. During those 6-, 8-, or even 10-hour freight delays that plague modern American supply chains, the truck drivers don’t even know when they might get called up. They are too often expected to sit idly in their trucks, lying in wait for extended periods to pounce when called upon for an available door. Sadly, drivers also report that many shippers expect them to endure these long waits without even access to a bathroom. Said one driver, “We're there for hours on end, but they expect us to use a bottle in the truck or a bucket or a Porta John that hasn't been cleaned in two weeks. … The health department should be notified.”
As I’ve researched this topic, I’ve been saddened to discover how often in contemporary American supply chains we mistreat our drivers in this way. By one driver’s estimate, 40% of the facilities he visits regularly detain drivers for extended periods of time and/or do not offer basic bathroom amenities to the truck drivers who service them. Of course, I want American supply chains to be as time-efficient and cost-competitive as they can be. And I hope that our research lab’s work will play a role in helping to achieve these goals. But I think we should also hold ourselves to a more fundamental and humanist standard too: Upholding the basic conditions of human decency and dignity for all the many people who make supply chains function, truck drivers included.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”
Keep ReadingShow less
This image generated by artificial intelligence provides an idea of the effect that flooding could have on distribution operations.
The nearly consecutive landfalls of Hurricanes Helene and Milton made two things clear: disasters are inevitable, and they’re increasing in frequency, scope, and severity. As logistics and supply chain leaders look toward 2025, disaster recovery planning should be top of mind—not only for safeguarding business operations but also for supporting affected communities in their recovery efforts. (For a look at lessons learned from 2024, please refer to the sidebar below.)
To ensure that they have a comprehensive plan in place, supply chain professionals should take a three-pronged approach that incorporates working with local emergency organizations, nonprofits, and internal partners.
Build relationships with local organizations
A critical first step in disaster readiness is identifying and establishing relationships with local emergency management organizations. Local emergency managers specialize in coordinating immediate disaster responses on the ground in their communities. While they’re well-versed in terms of supporting the continuity of critical infrastructure like hospitals, fire stations, and city services, they’re often less acquainted with the important connection between healthy supply chains and community resilience.
When local officials have a limited understanding of the critical role that distribution centers, manufacturing plants, or food suppliers play in disaster response, it can delay restoration of the flow of supplies to grocery stores, big box stores, and similar locations. For example, ensuring that debris on roads to a warehouse is cleared rapidly following a storm may not be high on the government’s priority list. However, doing so can help keep grocery stores stocked and supply chains intact, reducing the burden on the government to provide those resources.
With this in mind, invite local emergency management officials to tour your logistics facilities and explain the critical role your organization plays in maintaining the flow of goods within the broader community. This firsthand look will help them understand how your operations contribute to community resilience and support the local economy.
ALAN has been helping to connect nonprofits with logistics resources since 2005. Here supplies are packed up for transport and distribution to Hurricane Maria survivors in 2017.Photo courtesy of ALAN
Partner with nonprofits
There are many reasons why it makes sense for members of the logistics community to build partnerships with nonprofits before disasters hit. But one of the most important is this: Even the most well-organized of them usually experience logistics gaps. Many nonprofits lack a comprehensive understanding of how to create an effective logistics organization. Even if they do have logistics staff, they will often need additional logistics resources once a disaster hits to meet surging demand for services. However, after a disaster most nonprofits are usually operating at such a high capacity that they don’t have the time or bandwidth to onboard new logistics partners.
These logistics gaps—and the onboarding challenges that disasters create—are a key reason why the American Logistics Aid Network (ALAN) exists. The organization has spent 19 years connecting nonprofits with the logistics services and expertise they need with the help of a well-established network and preplanned resources. ALAN works to make it easy for logistics professionals to support disaster-stricken areas with everything from warehousing to transportation to material handling equipment.
Like all nonprofits, ALAN is able to carry out its work even more effectively when organizations reach out to ask, “How can we help?” long before a disaster occurs. The most effective disaster response is based on the preparation and strong relationships that have been built during quieter times.
Companies can offer their services ahead of time via ALAN’s webform (www.alanaid.org/volunteer/). ALAN then meets with each business to determine what services and equipment it can offer in tmes of need. When there is a request that matches a business’ profile, ALAN will reach out to see if the organization can assist.
By onboarding new partners when things are calm, ALAN can ensure that resources and logistics networks are primed, optimized, and ready for immediate action. This proactive approach makes sure that critical supplies and aid can reach those in need without delay. As a result, itprovides quicker support for affected residents and businesses alike and strengthens the resiliency of communities.
The nonprofit Unity in Disasters needed 30 pallets of food transported to Jackson, Miss., to help Hurricane Ida survivors in 2021. ALAN was on hand to coordinate a response.Photo courtesy of ALAN
A culture of safety, preparedness
While community preparedness is crucial, building a strong culture of personal and corporate readiness within your organization is equally important. A preparedness culture can safeguard employees and ensure operations can resume as quickly as possible after a disaster.
In light of this, encourage your personnel to identify safe locations for shelter or evacuation, assemble emergency supply kits, and follow advice from local officials during a crisis. This responsibility typically falls to a corporate safety officer, but for smaller organizations, supervisors or administrative staff may have to coordinate the efforts.
Just as important, consider taking a page from the book of the many logistics companies that have already begun offering training sessions to help employees prepare for various disaster scenarios. Some of these training sessions are as simple as start-of-shift conversations about shelter-in-place locations or evacuation routes. Other organizations do full-scale exercises. There are lots of resources companies can pull from to develop these training sessions, including businesses that specialize in corporate crisis training. The Association of Continuity Professionals has resources, as does the Federal Emergency Management Agency (FEMA), via their Ready Business website.
Some businesses even partner with local first responders to conduct walkthroughs of their facilities, ensuring firefighters and paramedics are familiar with the layout. These partnerships provide vital information that enables emergency crews to navigate facilities more effectively in a crisis, further safeguarding employees and reducing potential downtime.
Strengthening community resilience
When disasters strike, logistics and supply chain organizations have the ability to be game changers in the best possible way, strengthening community resilience.
By building relationships with local emergency management and nonprofit organizations, they can contribute to considerably more efficient and coordinated disaster response. Likewise, sharing their supply chain resources with nonprofits ensures help will arrive faster and allows each donated dollar to go farther. And by doing what they can to protect themselves and restore the ability to deliver food, water, and medical supplies to disaster survivors, they can make the difference between stability and prolonged hardship.
Working collaboratively, logistics and supply chain organizations can help communities withstand and recover from the worst, enabling a faster, stronger return to normalcy.
Learning from 2024
By looking back on the logistics challenges of the 2024 hurricane season and reflecting on the responses to Hurricanes Helene and Milton, we can gain valuable lessons for the future.
North Carolina faced severe infrastructure damage, including to roads, bridges, and utilities. Prioritizing road and rail rebuilding became paramount in order to reestablish connections between cities and manufacturing hubs.
Similarly, pharmaceutical facilities in affected areas needed clean water sources restored to resume production. When two separate IV fluid suppliers’ facilities—one in North Carolina and one in Florida—could not gain access to clean water due to hurricane damage, hospitals across the country experienced shortages. This disruption highlighted the importance of immediate utility restoration for critical industries.
Effective disaster preparedness must include insight into each community’s unique infrastructure and supply chain risk factors. It comes as no surprise that logistics organizations with strong ties to a community are especially qualified to help other business and government professionals understand these dynamics, which help to effectively allocate and position recovery resources.