Driver shortage offers truckers a opportunity to grow income

Due to the shortage of truck drivers - along with the other factors brought on by the pandemic - trucking companies are doing everything they can to hire and retain qualified drivers. 

To combat the shortage, trucking companies and recruiters are trying a range of tactics, including increasing pay.

Arnoux Maré, managing director at Innovative Learning Solutions discusses the opportunity truck drivers are presented with to fill in the skills shortage gap in the transport and logistics industry and increase their earnings by leveraging their training and experience.

The transportation industry like most sectors is still reeling from the effects of the pandemic and a contraction of the economy. However, as the country gears up to reclaim some semblance of normality, drivers are presented with an opportunity to not only fill the skills shortage gap present in the transport and logistics industry but can leverage their training and experience to increase their earnings

"Professionally trained drivers are in high demand as the industry aims to regain the losses suffered under the various lockdown levels and stifled economy. Drivers which fall in this category have specific skillsets such as, driving in wet conditions; economical driving; heavy goods vehicle braking; straight reverse and ally docking," explains Maré.

The Department of Labour published its minimum wages for South Africans who drive as wholesale and retail truck drivers, in February 2021. Code 14 drivers who worked in more populated municipalities could expect to earn no less than R 6,083.53 a month. However, this figure is not reflective of what more experienced drivers can earn in South Africa.

Data sourced from salary website Indeed shows that the base salary for a truck driver is closer to R10,324 per month in South Africa – or roughly R124,000 a year and comparative salary information from PayScale shows that the average pay is slightly lower at R98,225 a year, or R8,185 a month.

Upskilling drivers

The more qualified a driver is the better efficient they become, this also extends to their reliability leading to increased productivity which positively impacts their employers’ bottom line, offering them a huge negotiation advantage over their peers without the necessary training.

"It is not just the drivers who stand to benefit from having skills that set them apart. Businesses that invest in the development of systems and staff, increase their functionality and gain valuable data and insights over the industry and competition.

"As companies also seek to trim costs, being leaner and more capable of doing more with less will likely be more commonplace. This includes improving recruitment processes to ensure drivers beyond the technical know-how required of all drivers also have necessary soft skills such as communication, motivation and customer services," concludes Maré.

SAB owner-driver programme to empower SA truck drivers

 

South African Breweries' (SAB) owner-driver programme, in collaboration with Wesbank and Man trucks, is set to handover over six trucks to its beneficiaries. 

The programme will see drivers lease and operate their own trucks to distribute SAB's products from its various depots to retail outlets.

Sab aims to empower and equip entrepreneurs with vital business skill.

 

Also providing access to finance geared to build and create sustainable businesses that grow their communities.

"Owning and running an effective truck business needs a strong understanding and knowledge of company costs, attending to strict vehicle maintenance and quality controls and intensive preparation for the various expenses necessary to run a transport business like mine," says truck recipient, Gift Sithole. "Fortunately, the learnership programme I went through with SAB, prepared, and equipped me with logistics, financial and people skills to help manage and grow my business."

Creating sustainable businesses

Sphe Vundla, corporate brand director, says:

"A thriving SMME sector, powered by entrepreneurship and partnerships is central to the growth of the economy. We believe that through innovating the alcohol supply chain with initiatives such as the owner-driver programme, SAB has and will continue to positively impact the lives of individuals and communities across the country."

"Around 65% of our deliveries are done by owner-drivers, many of whom have gone on to own more than one truck. This programme has time and again, proven to be a winning recipe for all concerned: drivers are empowered, they create sustainable jobs for many others, and Sab gets its products to market. We are exceptionally proud of success stories like Gift’s."

 

 

Saving South Africa's trucking industry

While the social-economic environment in South Africa, which is marred by an abnormally high rate of unemployment, cannot be ignored or dismissed for some of the social ills, there have also been elements of criminal opportunism.

The state of the heavy haulage industry in SA

The past 18 months have not been any easier for the sector. The continuance of sporadic torching of trucks and attacks on truck drivers,

 service delivery protests and looting, the lockdown and various restrictions associated with the Covid 19 pandemic have further crippled the industry.

Due to the restrictions and limitation of transportation of essential goods during the hard lockdown, transporters have seen a massive drop in their turnovers, with most having to downsize and some even permanently closing. Those who are lucky enough to still be operational now have to stretch their staff and chase deadlines, which places further pressure and fatigue on drivers due to the long hours on the road – a major concern.

Proactively mitigating risks

With these challenges, Santam Heavy Haulage, as an insurance partner to the trucking industry, for example, has sought to educate both clients and brokers on how to better manage and mitigate risk in order to keep insurance premiums at a minimum. Insurance has traditionally been viewed as a grudge purchase, but recent events have highlighted the critical role it can play in minimising financial loss.

Being in the digital age, technology has become an important part of any business and the trucking industry is no exception. Telematics should be a necessity for transporters, not only for data collection but also for proactive risk management, with various safety features being incorporated in most new model trucks.

Route planning, which requires information gathering, is also important. Where intel has been collected on planned attacks on trucks, Santam has always tried to share the information with our stakeholders to enable them to avoid certain routes. We also rely on law enforcement and private security companies to offer security in identified hot spots.

To be successful, businesses need to prioritise their people’s wellbeing. Drivers are the driving force behind the trucking industry. Entrusting them with assets and cargo worth millions requires that they are equipped with the necessary skills, a conducive working environment, and regular access to medical check-ups to help them make better health choices.

With the rapid advancement of technology, driver training has become vital not only to sharpen driving skills, but also to familiarise drivers with the new model trucks that are constantly being introduced to the market. Encouraging drivers to take regular stops during trips helps to reduce fatigue, which in turn minimises the chances of collision, which may lead to unwanted downtime in an already strained economic environment.

Whilst we consider ourselves specialists in HCV and cargo insurance, we are operating in an ever-changing landscape that present new challenges on a daily basis, some never experienced before. This has compelled us to be flexible in our thinking and the way we do insurance. With various interactions, discussions, and collaboration with all stakeholders, we can ensure the sustainability of the industry. We must adopt a partnership, future-fit approach.

With the recent extensions in the validity of expired driver’s licenses, most of the drivers have not had to do their medical check-ups in a while in order to renew their professional driving permits (PRDPs), which is a health and safety hazard. These factors are highlighted by the rise in the number of single-vehicle accidents, which can be attributed mainly to driver error. This has been the main reason why, over the past few years, Santam has collaborated with the Road Traffic Management Corporation (RTMC) to advocate for driver wellness.

Why transport sector needs to dive into digital to deliver value

A GMA study conducted in 2019 found that by 2025 Gauteng’s roads would be so congested that traffic on the freeway would slow down to 10 kilometers an hour. This means that it will take four hours to travel from Pretoria to the city center in Johannesburg.

Fueling transformation

"The transport sector needs to heed the call for digitization within the next five years in order to deliver value to the customer and make sure that transport is a catalyst for economic growth through smart infrastructure, integration and technology," he said. "The challenge is to use technology to connect the infrastructure we already have."

An engineer with more than 22 years of experience in infrastructure, energy and mining – predominantly in the railway environment – Kgobe remarked that establishing partnerships with the private sector and the proper government entities will enable smart mobility, allowing for an easier and quicker commute and enabling the sector to extract the most out of the freight economy.

Thomas Snyman, Huawei senior account representative, added that facilitating smart mobility would require an integrated transport system connected across all transport modes, not only for commuters but also freight.

"Enabling interoperability through smart ICT will fuel the transformation of railway, air and road transport as well as South Africa’s ports. A fully connected rail, road, air, and port system achieved through unified data sharing using smart technologies like cloud computing, big data and IoT will improve on efficiencies, ensure greater safety and security, and provide a better customer experience at a lower cost," said Snyman.

Integrated systems

"For example, we are currently sitting with a situation where traffic management cannot monitor road conditions, drivers are unaware of road conditions ahead and traffic lights cannot flexibly adjust to road conditions, while current technologies to identify traffic violations can often be thwarted by fog, strong lights or low-resolution cameras paired with high-speed drivers," he observed.

"By introducing advanced technologies connected over fast networks managed by smart algorithms we could reduce congestion, identify areas that need maintenance, and improve road safety in real time."

Snyman added that 5G networks would be a core component in enabling an integrated transport system as its greater speeds, lower latency and scalability would allow for better communication across all transport modes. Recently, Huawei signed a cooperation agreement with Vodafone and Hungary’s East-West Intermodal Logistics Services to build Europe’s first smart railway hub using a 5G private network for internal communication and technical equipment networking management.

Huawei ICT senior specialist, Rose Moyo, said: "To ensure work mobility, you need to be looking at providing internet access and connectivity at any time and not be trapped within a fixed domain so that even when people are working remotely operations can continue."

She noted that significant investments in ICT would accelerate substantial upward momentum in South Africa’s GDP, but noted that digital transformation in industry was not isolated and must be led by the national digital transformation strategy. Meanwhile, Snyman added that as an experienced provider of transport solutions in more than 40 countries and regions across 5 continents, Huawei would continue to lend its expertise and services to support the transformation of South Africa’s transport sector.

 

 

Imperial enters strategic partnership with MiX Telematics

 

MiX Telematics (JSE: MIX), a leading global SaaS provider of connected fleet management solutions, today announced an agreement to be the preferred telematics provider for Imperial (JSE: IPL), a leading African focused provider of integrated market access and logistics solutions. 

This strategic business partnership allows for the alignment of data and reporting across Imperial.

Imperial has been a long-standing customer of MiX Telematics for more than 10 years. The new agreement means that MiX’s premium solution will be implemented across Imperial’s entire fleet for its proven risk management benefits. The telemetry data provided is integrated seamlessly into Imperial’s management systems, providing an overall view of operations, allowing for rich data analysis and the identification of trends for continuous efficiency improvements.

In addition, the MiX Track and React bureau service will be utilised to ensure safe vehicle and driver operations. The fleet’s safety and monitoring are further enhanced with the MiX Vision camera solution and MiX Vision bureau service, the benefits of which are greater visibility and insights into Imperial’s vehicles and drivers in real-time.

“Our expertise in fleet telematics and security services adds value to Imperial’s business and is testament to how successful our solutions are at meeting the specific requirements of a leading logistics provider. Together, our advanced artificial intelligence powered technology solutions present new growth opportunities for both businesses,” says Gert Pretorius, Managing Director at MiX Telematics Africa.