Although gas prices are lower, that doesn’t mean it’s easier for truckers in America.
The transportation industry is especially susceptible to economic ups and downs. According to the U.S. Department of Transportation in September and August, freight shipping decreased by 4.3 percent. Although it may not seem like a lot, the fact that truckers are now unemployed at 4.3 percent is a significant drop in freight shipping. One investment bank estimates that 127,000 truckers and 2,609 trucking companies failed this year.
Why is it that truckers don’t benefit from low gas prices. Consumers have stopped spending because of the economic recession. If Americans aren’t buying, stores don’t have to stock them.
Independent truckers have particular challenges. They often don’t make enough trips in order to pay for their operating expenses. Independent truckers can’t assess fuel surcharges unlike large truckers. Independent truckers used to pay out-of-pocket for fuel surcharges when they were high. Independent truckers can’t recoup their losses now that there are fewer drivers to hire.
However, not all truckers are in trouble. A few companies report profits, in fact. North South Leasing in Michigan, for example, has seen its truck leasing applications triple since June 2008. “Other finance and lease companies made their standards so high that people who would receive credit just a few years ago can’t get it today,”Bob Anderson, general manager. “We keep our standards reasonable.”
What did the result look like? Anderson reported that his company has signed 80 active leases with clients who are willing to offer more collateral and shorter terms. North South Leasing leases semitrucks to owner-operators. These owners operate the trucks like small businesses. Clients of North South Leasing seem to be doing well in today’s difficult economy.
Visit this site for more information www.nsleasing.com.
