Officials at Kenan Advantage Group Inc (KAG), North America’s largest bulk transportation and logistics provider, say an overwhelming majority of customers have agreed to partner with the company to support pay increases for its drivers.
In late September 2017, KAG announced the implementation of a pay increase strategy designed to proactively address the rapidly worsening driver shortage issue facing the entire trucking industry. As a result of the successful campaign, which includes finalizing details with a few remaining customers, the promised 2018 driver pay increases for KAG drivers went into effect on January 1.
The program calls for guaranteed pay increases for the next three years to help elevate driver pay to levels that successfully attract new drivers required to meet the capacity and growth needs of the organization’s blue chip customer base. This requires securing rate increases from the company’s customers to help fund the pay initiative.
“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,” said Bruce Blaise, president and chief executive officer of KAG. “Our customers recognize that the safe and secure delivery of their products is imperative to their business success.
“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.”
The Kenan Advantage Group, Inc. (www.thekag.com) operates through its five groups consisting of Fuels Delivery, Specialty Products (chemicals and liquid food), Merchant Gas, KAG Canada and Logistics. The company has terminal and satellite locations in 40 states and five Canadian provinces and territories, with the ability to deliver within all 48 contiguous states, Canada and Mexico. KAG also provides specialized supply chain logistics services through KAG Logistics (www.kaglogistics.com).