India’s trucking sector is facing a
significant downturn as the country’s driver shortage has reached critical
levels. The transportation industry,
which is a vital artery of the Indian economy, is grappling with an acute
scarcity of skilled drivers, leading to disrupted supply chains and increased
operational costs. This exacerbating issue has been threatening to
undermine the efficiency and reliability of freight movement across the nation,
posing serious challenges for businesses dependent on timely deliveries. As per estimates, the nation is currently
facing a shortage of nearly 2.2 million drivers. As the driver deficit
continues to grow, it is important to understand that this is not a phenomenon
that is unknown.
A persistent challenge for decades, the
drivers’ shortage has historically been due to poor working conditions, and a
lack of social security for drivers. Despite being the backbone of the
logistics sector, truck drivers often face long hours, extended periods away
from home, and insufficient rest, which affects their health and deters many
from entering or remaining in the profession.
Commenting on the same, Venu
Kondur, CEO, Lobb Logistics, said, “A critical but often overlooked aspect of global logistics, especially
in India, is the compensation for truck drivers. The perceived shortage
results in an estimated annual loss of about Rs 60,000 crore, with over 8.5
million truck drivers facing health issues, lack of rest, physical stress, and
mental pressure.”
In addition to this, Mr Kondur noted
that the proposed legislation under Bharatiya Nyaya Sanhita, 2023, with
stringent provisions against truck drivers, has faced strong opposition from
transporters nationwide, raising concerns about potential disruptions in the
supply chains.
Another issue is the swift integration of technology
into the logistics sector, which has yielded efficiency gains but also ushered
in a notable challenge – a widening skill gap among drivers. This phenomenon manifests in a slower uptake of
technological innovations, attributed to the reluctance or inability of the
existing workforce to embrace these changes. Presenting a different
perspective, Vijay Vashisht, Vice President, Safexpress says, “The slow
adoption of technology that could streamline logistics and reduce driver
workload has compounded the problem.” Consequently,
the industry clearly stands at a crossroads, balancing the potential of
technological advancements with the reality of a workforce striving to keep
pace.
In addition Mr Vashisht mentions, “The
ageing workforce, with many nearing retirement and insufficient young drivers
entering the profession, exacerbates the issue. The broader economic slowdown has reduced resources for driver training
and incentives. Also, large-scale infrastructure projects require more drivers,
further straining supply.”
The recent reports by the AITWA
underscore a paradox in the current job market: despite rising unemployment
rates, the trucking industry continues to face a severe driver shortage. This
persistent issue is primarily attributed to the challenging conditions in which
truck drivers operate across the country. Truckers
currently contend with little or no infrastructure on highways for proper rest,
sanitation, food, and parking and are in constant fear of their cargo, trucks,
and lives. .
In the short term, the shortage is
causing shipping delays and major supply chain disruptions, especially for
businesses relying on just-in-time (JIT) inventory management. Moreover, this
decreases efficiency and results in increased costs as trucks are making longer
trips to pick up and deliver loads, leading to higher fuel expenses and
increased wear and tear on vehicles. These costs are often passed on to
consumers through higher prices or absorbed by businesses, resulting in
decreased profits. “Specific efforts,
such as Varuna Group’s initiative to raise awareness about HIV/AIDS and promote
safe sex practices among long-distance truckers, exemplify a commitment to
driver welfare. Through partnerships with organisations like AHF India
Cares, this campaign provides free HIV testing & treatment, awareness
sessions, and condom distribution, particularly targeting highrisk groups like
long-haul drivers,” VIVEK JUNEJA, Founder and Managing Director, Varuna
Group