Freight Rates Are Going Up. Will Truck Driver Pay Go Up Too?

Knight-Swift reported its third-quarter results on Oct. 21. The numbers were a lot better than a year ago, with revenue up about 14% and truckload profits up sharply.

The bigger news for drivers was what came next. CEO Adam Miller said the company will head into its November bid season, when big shippers renew their contracts, asking for at least double-digit rate increases. He expects to start somewhere in the low-to-mid double digits and see how it goes from there. He also said demand for their trucks is strong and the market is tight.

For about three years, there were too many trucks chasing too little freight, and rates stayed low. Miller said that's changing.

Part of the reason is enforcement. Transport Topics reports that stricter federal rules this year, including tighter standards on non-domiciled CDLs and English proficiency, have sped up a drop in the number of trucks on the road. Miller also expects safe, compliant carriers to come out ahead as shippers and brokers get pickier about who they hire. Fewer trucks with the same freight usually means higher rates.

Here's the part that matters most. A carrier charging more doesn't mean your settlement gets bigger on its own.

Miller was honest about it. He said Knight-Swift is making targeted driver pay investments, but only where rates and margins can support them, and he admitted it won't be easy. In plain words: some drivers in some divisions may see more money, and others may not, depending on how the freight they haul is priced.

That's not a knock on one company. It's how most carriers work. The money has to come in before it goes out, and contract rates take months to change.

There's another line from the earnings call worth noticing. Knight-Swift said finding quality drivers is "as challenging as it has been in years."

If you have a clean record, solid experience and you show up when you say you will, that puts you in a stronger spot than you were a year or two ago. Carriers that want to grow need people like you. That doesn't guarantee a raise, but it does mean you can ask better questions and expect real answers.

Whether you're happy where you are or looking around, these questions help you see what you'd actually take home:

• How is pay figured: cents per mile, percentage of the load, or something else?

• Are empty miles, detention and layovers paid, and at what rate?

• When was the last pay raise, and is there a set schedule for the next one?

• What do drivers on my kind of freight and lane really average per week, not the top number?

• How much home time is typical, and how often does it get pushed back?

Ask for the answers in writing. A carrier that's serious about paying drivers well won't have a problem with that.

There's something here for owner-operators too. Knight-Swift says it has started offering market-based pricing to small independent owner-operators, which it didn't do before, and that its owner-operator count has grown over the past nine months. Access depends on passing the company's safety screening. If you run your own authority or lease on, it's worth knowing that big carriers are looking for more small partners right now.

Rates going up is good news for the industry after a long downturn. But a better market doesn't fill your account by itself. Pay follows the freight, the margins and the carrier's choices. Know what you're worth, ask clear questions, and get the numbers in writing before you decide.

If the answers you're getting don't add up, that's a sign to look at your options.