Pressure on Smaller Trucking Companies

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JOC.com’s senior editor William B. Cassidy recently wrote an article discussing the recent fate of some small trucking companies, and how the trucking market is currently impacting these smaller fleets.  Read on for a quick recap of what he had to say in his article:

Although there have been a few small trucking companies that have went under recently, Cassidy says that there is no need to worry about the demise of larger fleets and companies.  While the large companies are safe, he says that “pressure on smaller trucking firms is rising as spot rates drop and costs rise.” The smaller fleets do not have as much guaranteed safety and longevity, but the article does point out that “it’s very hard to kill a trucker”.  Even if their fleet goes out of business, they may be hired into another company rather quickly.

The time period between mid-January and the beginning of February was a difficult time for smaller trucking companies; these few weeks saw a 5,000 driver loss from these companies.  Another set of drivers, 187 this time, were lost between February and March, according to the article. Though this may seem shocking, it is important to point out that “trucking bankruptcies dropped to a 20-year low in 2018” so all hope is not lost.

Some of the reasons that a smaller trucking fleet may face great difficulty in growing their business results from losing important customers, and hacking.  Although these troubles can fall on any company, the small fleets tend to feel the hit more prominently. There are many obstacles for truckers and trucking companies to overcome while doing business, but for now, there is no reason to become too concerned about the fate of small fleets.

Check out the full article here: https://www.joc.com/trucking-logistics/ltl-trucking-logistics/new-england-motor-freight-nemf/trucker-bankruptcies-reveal-perils-carriers-shippers_20190514.html

All credit goes to the original source and author.