The Trucking Recession is happening now 2019
‘I don’t know how long I can stay in business’: Truckers’ fears have soared to recession-level highs
Trucking companies’ pay expectations have sunk to 2016 levels, according to a new Morgan Stanley report. The last time trucking hit a recession was in 2016.
While indicators suggest the overall economy is healthy, truckers like Christopher Powell have seen their pay hit the skids.
Powell says his gross earnings have tanked to $3,500 to $5,000 a week from a range of $6,000 to $7,000 a week — and that’s before he has to pay out for repairs, maintenance, and other business expenses. “I don’t know how long I can stay in business if things don’t pick up,”
Freight rates have dipped year-over-year for six months straight. Loads on the spot market, in which retailers and manufacturers buy trucking capacity as they need it, rather than through a contract, fell by 50.3% in June year-over-year.
But capacity, meaning the number of trucks available to move loads, was up by 29.9% in June year-over-year. Last year was particularly profitable for truckers, and it encouraged lots of companies to buy more trucks and hire more drivers. Companies ordered so many new trucks last year that by January there was still an eight-month backlog of new truck orders.
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