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TRUCKING INDUSTRY CRISIS * USA - Independent drivers and companies see profit margins evaporate
Scott Twp.,PA,USA -The Wilkes Barre Citizens Voice (Wilkes Barre,PA), by JAMES HAGGERTY -9 July 2008 — ... Independent operators and small trucking companies that make narrow profits during prosperous times are watching margins evaporate and debt pile up as average diesel fuel prices nudge $5 a gallon locally... A 66 percent increase in diesel fuel prices in the last year is creating job losses in the industry’s biggest shakeout since the trucking industry was deregulated in 1980. Decreased freight volumes from the economic slowdown increase rate competition and cut further into margins... Consumer prices are rising and part of that can be attributed to the cost of (diesel) fuel... Tom Smith, of Pittston, knows how difficult it can get. His company, T.C. Smith & Sons Trucking Inc., recently filed for bankruptcy protection after 40 years in business. The Pittston company had 25 employees and 18 trucks before closing. Smith’s son, Tom Jr., recently established Logan Transportation Inc. in Pittston to keep the family in the trucking business... Staying in the business, though, is tougher not just because of record fuel costs. Banks are reluctant to provide financing because of turmoil in the industry...
Labels: trucking industry news USA
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