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Labor shortages and agricultural trucking rates

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  • Timothy J. Richards
  • Zachariah Rutledge
  • Marcelo Castillo

Abstract

In the United States, truck rates for perishable food, the per‐mile rate charged for trucking services to move perishable food from farms to stores, rose substantially in the post‐COVID‐19 pandemic era. We argue that rising truck rates is a signal of a broader shortage of truckers, but the connection between labor shortages, rising truck rates, and a lack of trucking services has yet to be established empirically. In this paper, we develop an empirical examination based on an equilibrium job search, matching, and bargaining framework in which we estimate the role of labor shortages in accelerating driver‐wage growth, and truck rates for agricultural products. We estimate the model by combining US Bureau of Census Current Population Survey data on truck driver wages with USDA‐Agricultural Marketing Service Service data on truck rates to establish the linkage between trucker supply and the demand for trucking services. We find that the COVID‐19 pandemic was responsible for a rise in for‐hire trucker wages of some 38%$38\%$, a rise in average truck rates of nearly 50%$50\%$ and that the gap between trucker‐job openings and successful matches explains a significant, but small, rise in truck rates. Aux États‐Unis, les tarifs des camions pour les denrées périssables, c'est‐à‐dire le tarif par kilomètre facturé pour les services de camionnage destinés à transporter les denrées périssables des fermes aux magasins, ont considérablement augmenté après la pandémie de COVID‐19. Nous soutenons que la hausse des tarifs de camionnage est le signe d'une pénurie plus large de camionneurs, mais le lien entre la pénurie de main‐d’œuvre, la hausse des tarifs de camionnage et le manque de services de camionnage n'a pas encore été établi empiriquement. Dans cet article, nous développons un examen empirique basé sur un cadre équilibré de recherche d'emploi, d'appariement et de négociation dans lequel nous estimons le rôle des pénuries de main‐d’œuvre dans l'accélération de la croissance des salaires des conducteurs et des tarifs des camions pour les produits agricoles. Nous estimons le modèle en combinant les données de l'enquête sur la population actuelle du Bureau of Census des États‐Unis sur les salaires des chauffeurs de camion avec les données de l'USDA‐Agricultural Marketing Service sur les tarifs des camions afin d'établir le lien entre l'offre des camionneurs et la demande de services de camionnage. Nous constatons que la pandémie de COVID‐19 a été responsable d'une augmentation des salaires des camionneurs pour compte d'autrui d'environ 38 %, d'une augmentation des tarifs moyens des camionneurs de près de 50 % et que l'écart entre les offres d'emploi de camionneur et les correspondances réussies explique une augmentation significative, mais légère, des tarifs de camionnage.

Suggested Citation

  • Timothy J. Richards & Zachariah Rutledge & Marcelo Castillo, 2024. "Labor shortages and agricultural trucking rates," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(2), pages 105-129, June.
  • Handle: RePEc:bla:canjag:v:72:y:2024:i:2:p:105-129
    DOI: 10.1111/cjag.12358
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