Truck driver pay has increased 17% over the last two years and will continue to climb. Truck drivers haven’t seen pay raises in years. They’re now demanding more money, and carriers must oblige.

The transportation industry faces a unique problem in today’s economy: hiring new drivers. Most current truck drivers are approaching retirement, and few people are willing or able to replace them. This means that freight carriers must start getting creative and investing heavily in the ways they recruit new drivers. There are many ways to recruit, but there’s a common theme in all of them. Jeff Stoicheff, Senior Vice President of Human Resources at Penske Logistics, sums it up well when he says, “It’s about respect; good pay and benefits; safe, reliable equipment; and home time.” A freight carrier must appeal to these driver needs to be a competitive recruiter.

According to the DOT, logistics is defined as “the cost-effective process of planning, implementing and controlling the efficient movement and storage of goods from the point of origin to the end-user.” They define transport as “the movement of products and people from one point to another via air, sea, road, and rail.” Transportation and logistics have become an integral part of how businesses operateand run their supply chain today. Here are five facts about the logistics and transportation industry:

Less-than-truckload rates are on the rise. LTL carriers, Conway Freight, UPS and ABF Freight Systems, have recently announced general rate increases that will hit customers in the coming months. This is the second time this year that general rate increases were announced (Read our post about the April GRIs, LTL Freight Carriers announce General Rates Increases).

Creating a decent supply chain management strategy can be challenging. On the opposite side, delegating such a huge part of your business to a third-party company essentially needs credibility and confidence in your logistics partner.

As we all know the economy has not been the greatest in recent years and everyone has seen the effects of the recession. Therefore, companies that are willing to outsource their shipping needs to a 3PL can save a substantial amount of money on their freight cost.

A third party logistics (3PL) company is defined as an external supplier that performs all or part of a company’s supply chain management. Many 3PL’s offer a wide range of services that include inbound freight, outbound freight, freight consolidation, warehousing, distribution, and order fulfillment. Over the past few years, there has been a huge growth in 3PLs and this has been attributed to the need for companies to become leaner, reduce assets (including headcount) and focus on core business processes.

Would you be willing to pay 5% higher prices for products ordered online if they are shipped sustainably? A recent survey titled “Need for Green or Need for Speed” Survey conducted by the consulting firm West Monroe Partners revealed that 54% of e-commerce consumers are willing to pay the extra money.

One of the most concerning factors behind the current and future driver shortage is the lack of young drivers. The Bureau of Labor Statistics says the average age of a truck driver today is 55 or older. The Baby Boomer generation is growing increasingly close to retirement and there are not enough drivers, especially young ones, to replace them.

Capacity issues are straining relationships between shippers and carriers. A rise in trucking demand, a shortage of drivers, government regulations, and shipping inefficiencies all play a role in the current shortage of capacity.

As Truck Driver Appreciation Week rolls around, it’s time to look closer at what this country’s truck drivers actually do for us. Many times when we are at the supermarket, or ordering something from Amazon, we don’t appreciate how these goods find their way to us. All of the products sold in stores today have been moved across the country, and we usually don’t think of the long and complex path they took to get there.