US Express, one of the largest US trucking companies, just announced a 5% layoff of their management. More will follow.
Here’s the issue: Big trucks get maybe 6 miles per gallon. With $6 per gallon diesel, it costs a dollar per mile just for fuel. Add all the other costs in, the break even point for truckers is about $3 per mile to haul. Spot rates (what truckers get paid to haul) have been falling the past couple months and are about $2.50 per mile and continue to drop. Truckers are losing money every mile they drive.
Another Xiden disaster.
I have read elsewhere that truckers are being forced to curtail some routes to make ends meet/breakeven. And that one of the more unprofitable routes is into Florida. There may bebdry spots all over the country where the big trucks won’t be able to go in order to stay in business. Don’t know if smaller operators can make up fr the difference.