Illinois based Nussbaum Transportation raised driver pay for the second time in two months, a move industry watchers see as an early signal that competition for qualified drivers is heating up again. Current over the road drivers received a 3 cent per mile raise plus a $50 bump in their weekly minimum guarantee, while new hires saw starting pay rise 5 cents per mile with a $100 increase in the weekly minimum.

Drivers in Nussbaum's designated key locations, a group of freight corridors including the Chicago to Kenosha and Racine stretch, the Quad Cities, Indianapolis, and Columbus, will see a base rate 10 cents per mile higher than before the two rounds of increases, plus an extra $200 in their weekly guarantee. The company is also offering a $3,000 sign on bonus for drivers transitioning from another carrier and $5,000 for flatbed drivers, both paid out over six months.

According to Nussbaum's own figures, the changes add $5,000 to $6,000 a year for irregular route dry van drivers, who can expect first year pay of $81,000 to $92,000 depending on experience. Drivers in key locations can expect $86,000 to $95,000 in year one, climbing toward $100,000 by year two. The company also launched its first driver profit sharing plan, projected to average 2 cents per mile annually, with strong years reaching 4 cents per mile.

National Transportation Institute president Leah Shaver said fleets have reported a steady stream of base pay increases over the past month tied to hiring struggles that intensified in the second quarter. Ryder's dedicated fleet division has told investors it expects turnover, sign on bonuses, and eventually broader wage inflation to follow the same pattern industrywide.

Source: FreightWaves -- https://www.freightwaves.com/news/carrier-nussbaum-sets-driver-pay-increase-others-popping-up-more-quietly