I wonder how many other trucking companies are teetering on the brink?
I’ve heard as many as 10% - 15%. Unfortunately, this sort of thing needs to happen though. There are too many trucks out there, and not enough freight. Carriers are hauling freight at a loss, just to keep the trucks moving. We’ve lost a bunch of carriers already, but there’s still too much capacity. Once we weed out a few more weak sisters, then freight rates will start to firm up, and the trucking industry will start moving forward again.
There are lots of trucking companies that have been going out of business ever since diesel fuel spiked to $5.00/gallon last year. It has gone down but so has the amount of freight to move around the country. Less freight to move requires less total trucks to carry it. It is a normal contraction in the economic cycle.