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.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain.”
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.