FROM A 32 YEAR IN THE BUSINESS TRUCKER- Bottom line, the most important industry in this country is on the verge of collapsing. Blood bath barely covers it.
As you know, I have been in trucking for 32 years, and I was just reading an article you posted about trucking. That article is 95% spot on. Although, I think the economy isn't entirely to blame. When the ELD mandate kicked in, it caused a dramatic slow down and in turn a capacity problem. There were not enough trucks to cover all the freight of a growing economy, that drove rates to an all time high. The response was that companies and owner operators expanded substantially. Every one bought loads of new equipment. Too much to fast. (one of my customers added 10,000 trailers last year, this year, they are only replacing older ones, with the expectaion of about 3000 trailers) Now, we have the opposite problem, way too many trucks. Year over year 2018 to 2019, the industry capacity is up 52%. 52% more trucks on the road, all fighting for the same loads, which in turn has caused rates to plummet. Fact is, I have been offered loads at 1991 rates. I suggest to you, that we are absolutely in a freight recession, and what happened in 08 to housing, is about to happen in trucking. You just cant pay a $3000 or more truck payment running for a dollar a mile.
Luckily, I have been at this long enough, that I saw the signs, and got out while I was ahead. I sold all my remaining equipment 6 weeks ago.
Since then, I have watched a lot of people, big and small do the same. Bottom line, the most important industry in this country is on the verge of collapsing. Blood bath barely covers it.:
When this begins in earnest, no part of this country will be exempt from its effects.Ken
Jun 21, 2019