The trucking industry is experiencing a “bloodbath.” So far in 2019, at least 2,500 truckers have lost their jobs as companies go bankrupt as a major recession indicator keeps going negative.
According to Yahoo, six trucking companies have completely folded in 2019 and hat has left more than 2,500 truck drivers unemployed. And after a hugely profitable year in 2018, this year has seen retailers and manufacturers moving less, according to the Cass Freight Index, which has been a pretty spot-on indicator of a recession.
Additionally, truck drivers who own their business or work at a small business are suffering more and more as the year drags on. Rates in the spot market, in which retailers and manufacturers buy trucking capacity as they need it rather than through a contract, sank by about 18% year-over-year in June. That has caused truckers like Demetrius Wilburn, a Georgia-based driver, to find themselves unemployed.
Wilburn bought his semi-truck four years ago after years of working as a company truck driver. But amid rock-bottom rates, Wilburn wasn’t able to make a payment one month — and his truck was repossessed. “I was only six months away from paying it off,” Wilburn told Business Insider. “I’m trying to transition back into law enforcement now — don’t want to ever drive trucks again!”
“Definitely not worth it,” a Lexington, Kentucky-based owner-operator Chad Boblett told Business Insider. Boblett that some truck drivers were seeing a “bloodbath” in just how low rates had become.
Truckers’ Fears Are At RECESSION LEVEL HIGHS As They Warn Of “Bloodbath” And Bankruptcy
Starlite Trucking, which has been in business for 40 years, announced on July 12 that the company was closing down. The company was based in Ceres, California which is about 100 miles southeast of San Francisco. The company mostly hauled livestock feed, nuts, and other products for the agricultural region. CEO Colby Bell said in a statement on Facebook that the rising compliance costs (the costs of keeping up with regulations and laws) of California regulations gutted the company, particularly as rates have stagnated. “We tried to provide a healthy work environment for our employees and give them the best wages and benefits we could, but in the end, the rates that were available did not support the cost structure needed to compensate our employees appropriately,” Bell said.
All indicators are pointing to an economic recession or crash in the next year and the trucking industry is highlighting just how hard it can be for working Americans to get by. Whether it’s regulation compliance or a decrease in demand, the general working class is having a rough time right now.
The economic and monetary disaster which seasoned prognosticator Peter Schiff predicted is no longer hypothetical-it is here today. And nobody understands what to do in this situation better than the man who saw it coming. For more than a decade, Schiff has not only observed the economy, but also helped his clients restructure their portfolios to reflect his outlook. What he sees today is a nation facing an economic storm brought on by growing federal, personal, and corporate debt; too little savings; and a declining dollar. –Crash Proof 2.0: How To Profit From The Economic Collapse, by Peter Schiff
Schiff infamously called the Great Recession of a decade ago an in his book, he details ways to actaully profit when the United States enters another recession by preparing your finances.
Peter Schiff: There’s A BIG Problem With The Economy, ‘Americans Are BROKE’
The economic and monetary disaster which seasoned prognosticator Peter Schiff predicted is no longer hypothetical-it is here today. And nobody understands what to do in this situation better than the man who saw it coming. For more than a decade, Schiff has not only observed the economy, but also helped his clients restructure their portfolios to reflect his outlook. What he sees today is a nation facing an economic storm brought on by growing federal, personal, and corporate debt; too little savings; and a declining dollar. –
The trucking industry is slow, that is true but I’m not so sure I’d buy into the fear porn just yet. I’ve been a trucker for more than 30 years and this “slowdown” doesn’t have the feeling of recession to me. I think it’s more simply business evolution. Many drivers lost their jobs due to companies folding but there are some companies, like the one I work at, that are hiring. We haul freight, that’s it. No distribution or manufacture transport delivery, strictly freight. Our company is slow as well, but the reason we’re hiring is because when it picks up, and it will, we’ be positioned to handle all the freight from the companies that closed. It’s not a recession folks. Other economic numbers don’t support that thinking. It’s just more “I hate Trump” fear porn.
Lots of 18 Wheelers on the road here in North/Central Florida. Must be a problem in other parts of the U.S. like the bankrupt states NY/IL/NJ etc.
The good thang/bad thang about the Gunshine State is we always have fresh Yankees moving here to pay our taxes. Plus the “Snow Birds” come down to escape the Winters up in Yankee land too.
Aim small/miss small and watch out fur dem hogs.
I lived in NJ and now live in NC. I see plenty of trucks and food here in the mountains. Friendly people, low traffic and taxes, and plenty of work. Wouldn’t move back north if you paid me.
Just got back from a trip to CO yesterday. I certainly didn’t see fewer trucks on the road. Spent the entire day yesterday passing them.
I’m a curious guy.
I know government regulations strangle most businesses.
Truckers are highly regulated!
But trucks are still making deliveries.
One has to ask how one outfit can stay in business, while
another fails?
Perhaps there is something wrong with the business model?
We constantly hear of how there is a shortage of truckers, but their wages stagnate. What is wrong with this picture?
Rellik, those are good questions. Still plenty of rigs making deliveries and traveling through my area. I keep hearing the industry is short by at least 50,000 drivers and they’re making less money than they used to. There’s something else we’re not being told.
Many O/O’s blame Deregulation for destroying the trucking industry..
I was an OTR driver for 23 years,but I was a company driver.
I pulled reefers throughout the lower 48, and parts of Canada.
I made a comfortable living,but I also ran my ass off and usually stayed out 21-28 days before getting 2 days off..
I left the industry in 09’ because the industry had become way too micro-managed for me..
There are many reasons but the main reason is poor planning.
Seminole Wind, same thing in my area. No shortage of 18 Wheelers running through my area but there are a few dealerships with big inventories of new and used rigs for sale. Agreed it’s a problem in certain other parts of the US. But I believe it will hit my area eventually. I may be relocating before too long.
2500 does NOT a bloodbath make geeeeezus. Lot’s of jobs for truckers around here. I work with a lot of truckers at work and a lot of them refuse to do Kommiefornia loads. Fook Kali, buncha mexican drivers anyway….
East bound and down, loaded up and truckin’,
We’re gonna do what they say can’t be done.
We’ve got a long way to go and a short time to get there.
I’m east bound, just watch ol’ “Bandit” run.
Keep your foot hard on the pedal. Son, never mind them brakes.
Let it all hang out ’cause we got a run to make.
The boys are thirsty in Atlanta and there’s beer in Texarcana.
And we’ll bring it back no matter what it takes.
East bound and down, loaded up and truckin’,
We’re gonna do what they say can’t be done.
We’ve got a long way to go and a short time to get there.
I’m east bound, just watch ol’ “Bandit” run.
East bound and down, loaded up and truckin’,
We’re gonna do what they say can’t be done.
We’ve got a long way to go and a short time to get there.
I’m east bound, just watch ol’ “Bandit” run.
Ol’ Smokey’s got them ears on and he’s hot on your trail.
He aint gonna rest ’til you’re in jail.
So you got to dodge ‘im and you got to duck ‘im,
You got to keep that diesel truckin’.
Just put that hammer down and give it hell.
East bound and down, loaded up and truckin’,
We’re gonna do what they say can’t be done.
We’ve got a long way to go and a short time to get there.
I’m east bound, just watch ol’ “Bandit” run.
Written by: Dick Feller, Jerry Hubbard Reed
Lyrics © Universal Music Publishing Group, HORI PRO ENTERTAINMENT GROUP
Lyrics Licensed & Provided by LyricFind
Exactly my thought, NOT a bloodbath. To be honest, when I read the title of the article I was certain it was another sensational headline from Michael Snyder. Ok, so I peeked and found out I was wrong.
When I hear the trucking firms are letting go of foreign drivers then I know we’re in trouble.
2500 out of how many millions….
“The American Trucking Associations estimates that there are 3.5 million truck drivers in the USA.” – July 2018
2500 jobs represents 0.07% of that total or in other numbers we have seen 1 in 1400 truckers lose their jobs in 2019 (say the first six months)
If this trend is linear throughout the year, we will see a loss of about 0.15% or 1 in 650 to 700 drivers…
This is hardly even a pin prick…Bloodbath is way over the top hyperbole.
Doesn’t anybody edit for content around here ?
<bb
CBD oil will fix it for sure.
2500 have lost their jobs for one reason or another, and several thousands have been hired. Nothing but hiring out where I am. One of the largest growing transportation segments. Calling BS here.
It is all about the headline. I think they are taught it has to be attention getting, and the more sensational the better.
As for the guy that lost his truck, the companies do that to you on purpose. If you Buy it or Lease it from the company you cannot your truck to another company until paid for. Then at the end of the term they about stop giving you loads and you cannot make the payments. Company gets truck back and sells it again. Been going on for years. Freight slowdown just makes it easier for them to do this….and blame the slowdown for it.
This happens because most people do not save any money. If over the 4 years he had saved $50K he would have had the money to make those last payments. Nope….spend every dime you make is all people know.
new england motor freight nemf went under a few months ago. it was a good sized ltl trucking outfit. they were moving freight for free thats why they went down id bet they had 2500 drivers through their system. many got rehired right away by other companies. drivers can get a job any day of the week. walmart is desperate for drivers there is fuel construction trash cars that need hauled. forget leasing if that was the only way better find another job. you get screwed either way truckin sux.
The issue here is that I don’t know one single trucking company that is not hiring right now.
I know a guy that had a DUI and one company paid his fees so he could get his license back… they are in that big of a need for drivers