Highway Transport, a family-owned specialized liquid bulk chemical carrier based in Knoxville, Tennessee, is one of the latest companies to increase driver pay as capacity tightens and freight demand increases.
Steve Smith is the president and COO of this carrier, which has about 400 drivers running the U.S. and Canada from 20 locations east of a line from Chicago to Texas. He said the driver pay raise came about after some uncertain times following the COVID pandemic.
Steve Smith
Today, Highway Transport’s over-the-road drives can earn from 77 to 96 cents per mile, and regional drivers are paid between 68 and 88 cents per mile. Local drivers, who are paid by the hour, also received an increase.
Smith said the pay increase resulted from an outside consultation process where drivers expressed a desire for a combination of home time and financial stability,
“We hired an outside consultant to talk to our drivers and a third-party non-biased person to just go in and talk to them about what attracted you to the company, what keeps you at the company, if you could change something, what would that be?”
Smith said that he and others analyzed what drivers said, and it was determined, "We need to have drivers who feel like we have their back. When we don't have work for them, they should still get paid. They should have a base. They should have some feeling you can count on this amount of money to pay your bills week in week out.”
According to Smith, the goal of the new pay plan was to ensure drivers have a base salary that they can count on, while providing incentives to earn more through extra effort and miles. He said a key component of this shift involved moving detention pay — which compensates drivers from the "minute one" of loading or unloading — directly into the base rate to provide a more competitive and transparent compensation package. He said this gives Highway Transport an edge in recruiting drivers.
Smith added the company also plans to implement additional pay tiers early next year, including longevity bonuses to reward long-term service, which he said differentiates Highway Transport from competitors who rely heavily on sign-on bonuses. The company also intends to introduce "perfect week" incentives, rewarding drivers for completing work without safety events or paperwork errors.
Highway Transport, according to Smith, specializes in hauling liquid bulk chemicals. It does no food grade transportation. About half of what it hauls are hazardous materials.
Smith said the company focuses on premium service rather than volume to sustain its position in the marketplace. Highway Transport offers a hot shot type service called "Chemical Critical" for urgent customer needs, he said.
“We're a very high service company,” said Smith. “Safety and service are our two most known attributes.”
Currently, the company’s roster of deliveries is composed of about 5% local, 20% over-the-road, and 75% regional. Smith said the company’s plan is to adjust this mix to 10% local, 40% over-the-road, and 50% regional. He said over-the-road routes provide the highest level of flexible capacity for the company’s operations.
Smith said the company’s fleet primarily utilizes Mack and Freightliner tractors, with a shift toward Freightliner for comfort. It primarily uses Wabash trailers and has a new partnership with Wisconsin-based STE for automated tank manufacturing.
To improve safety and operations, Smith said the company uses various technologies, including battery HVAC systems to reduce idle time, event-driven camera systems for training purposes, and real-time tank temperature monitoring, which helps eliminate mundane tasks for drivers.
“Our driving force also sets us apart,” said Smith. “We require the top echelon of drivers, folks that not only like to drive but also are very detail oriented. Our business requires protective gear. They have to put on a suit if it's a certain type of chemical, wear a hard hat, safety goggles, and a mask and heavy boots. And, if you've been to Texas or Louisiana lately in the Gulf area, it's quite a job those guys have to do it day in and day out. So that requires us to pay them more than a typical trucking company.”
To attract and retain disciplined, detail-oriented drivers required of Highway Transport’s hazmat hauls, Smith said the company specifically targets veterans, police officers, and firefighters when recruiting. He said the company also offers a variety of driver rewards such as a customized truck for reaching one million safe miles and high-quality watches for 20 years of service.
He said the company also maintains a "Speakup" system via barcodes that allows drivers to provide feedback anonymously or directly to management, ensuring an open culture Smith said supports driver retention.
In the end, Smith said Highway Transport intends to remain privately owned, focusing on being the best service provider rather than the biggest, while maintaining a commitment to creating sustainable jobs and supporting the community.
