The Kenan Advantage Group (KAG), which provides bulk transportation and logistics services, said that the “overwhelming majority” of its customers are partnering with it to support a three-year effort to boost pay rates for KAG drivers.
In late September, the motor carrier announced the implementation of a pay increase strategy designed to “proactively address” the rapidly worsening driver shortage issue.
As a result of the successful campaign, which includes finalizing details with a few remaining customers, the motor carrier’s promised 2018 driver pay increases for KAG drivers went into effect on January 1., with further “guaranteed” pay increases planned for the next three years.
The core of the plan rested on securing rate increases from customers, noted Bruce Blaise, president and CEO of KAG, in a statement.
"We are thankful, but not surprised, that our valued customers understood the consequences of an impending driver shortage and took action with us to support this critical role within our country's economy," he said, adding that driver pay to levels need to be “elevated” in order to successfully attract new drivers required to meet KAG’s capacity and growth needs.
"Our customers recognize that the safe and secure delivery of their products is imperative to their business success,” Blaise noted. “Similarly, as the flagship transportation company in the liquid bulk industry, we understand the importance of retaining and recruiting the best drivers in the business.”