1Q08: 935 U.S. trucking firms failed (high fuel costs)

TangoWhiskey

TangoWhiskey

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That's what I've heard as well, Scott... CSX is even running an ad on the TV touting their tonnage/mpg. I think we'll see more freight going by train (when it can), and less long-haul trucking.

Edit: here's the CSX ad I was thinking of
 
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TangoWhiskey said:
That's what I've heard as well, Scott... CSX is even running an ad on the TV touting their tonnage/mpg. I think we'll see more freight going by train (when it can), and less long-haul trucking.

Edit: here's the CSX ad I was thinking of
Click to expand...


The increase in rail should be a good thing - assuming we didn't shortsightedly convert too many rail lines into bike paths. :dunno:
 
nddons said:
The increase in rail should be a good thing - assuming we didn't shortsightedly convert too many rail lines into bike paths. :dunno:
Click to expand...
Most of those are the rail lines that the tracks have degraded to the point of being to expensive to bring up to standards. Or are ones traveling right through the backyards of housing developments.

What we really need to be doing is updating our current rail lines to handle higher speed trains.
 
There is already a program in the works to provide an "express" lane for railroad shipments from the west coast to ports in Florida and New England area. I can't find the darn story about it now, though. It basically made a big 'X' across the country.

UP seems to be weathering the 'poor' economy well so far.
http://www.uprr.com/newsinfo/releases/financial/2008/0424_1qearnings.shtml

While the 90's economic 'boom' was based on increases in micro-computer technology, I think the next economic boom will be based on process technology - finding a way to do the things we already do, more efficiently. While microcomputers will play a part in the process, I think a major area of thought will be in larger-scale mechanical issues: How to load a rail car faster for quicker turn-around; how to optimize shipping load sizes to take advantage of TL/CL vs LTL/LCL; how to optimize manufacturing processes for more JIT type production, etc. It should be a very interesting next few years as the focus will shift back toward more low-tech 'sweat of the brow' type of thinking. What makes it REALLY interesting is how the advanced technology that wasn't available in previous mini-industrial revolutions will play a major part in this round of global restructuring.
 
TangoWhiskey said:
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/061708dnbustruckers.41a7ab7.html

Kent can relate to the costs to truckers, but we all feel it, as it trickles down to the cost of the goods we purchase that are trucked into our communities.

I was surprised to read that 935 trucking firms failed in the first three months of the year--I imagine a great deal of those are one-truck operations?
Click to expand...

Troy,

There are roughly 600,000 trucking COMPANIES in the US. 2/3 of them have 6 or fewer trucks. That leaves 200,000 companies with more than 6 trucks.

I can tell you that way more than 935 owner-operators parked their trucks in the first 3 months of the year. Their companies didn't "fail" - They simply stopped operating. An owner-operator has the flexibility to just stop when he's not making enough money. I know some folks who have stopped during the winter the last couple of years - Idling to keep warm has lowered their profits enough that they just don't drive during the cold months. (Most of our owner-operators who do run during the winter take all the Texas loads.)

So, I would bet that the 935 stat is actual companies, with hired-on drivers that have no relationship to the owners. On top of that, I'm sure there are many more that are shutting down portions - As you know, I'll be out of a job at the end of July because my company is shutting down the van division (>3/4 of the company) to focus on the more-profitable flatbed side of things and hauling materials and houses for the parent company (Wausau Homes).

As stated in the article - The economy's been bad before, but we've never had this combination of bad economy and god-awful fuel prices. Diesel crossed $4 a gallon in the 2nd week of March and hasn't been close since - It's hovering in the $4.60-$4.80 range in most places, and I have seen $4.999 at least once. (I wouldn't be surprised if it's over $5 in California, New York, etc.)

The trucking industry is a pretty good indicator of how the overall economy is doing... And things are bad. Very, very, very bad.
 
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