Big Money for Big Trucking Companies

TRUCKING COMPANIES ARE MAKING BIG PROFITS, BUT ARE YOU?

BIG EARNINGS FOR THE LAST QUARTER IN TWO THOUSAND FIVE AND EVEN BIGGER RETURNS FOR THE FIRST QUARTER IN TWO THOUSAND SIX LEAVE SOME ANALYSTS WONDERING WHETHER THE CURRENT TRUCKING CLIMATE CAN LAST MUCH LONGER.

THE TWO BIGGEST EXPENSES FOR THE INDUSTRY, NUMBER ONE, DRIVERS, AND NUMBER TWO, FUEL, ARE BEING BLAMED FOR THE LARGEST INCREASE IN SHIPPING RATES.

THE DRIVER SHORTAGE AND ONE HUNDRED THIRTY FIVE PERCENT TURNOVER RATE CONTRIBUTE TO THE INDUSTRY’S NUMBER ONE EXPENSE. HOW MUCH ? STANDARD AND POOR FIGURE THE TURNOVER RATE COSTS TRUCKING COMPANIES ABOUT THREE BILLION DOLLARS EVERY YEAR.

TREMENDOUSLY INCREASED PRICES FOR FUEL, THE INDUSTRY’S SECOND-LARGEST EXPENSE, ARE BLAMED ON HURRICANES, LESSENED OIL PRODUCTION AS REFINERIES NOW MUST RETOOL FOR LOW SULFUR FUEL, AND HUGE WORLD-WIDE DEMAND.

MANY COMPANIES HAVE ADDED FUEL SURCHARGES TO THE SHIPPERS’ BILLS. OTHER COMPANIES RAISED THEIR RATES FOR A VARIETY OF LARGE AND SMALL REASONS, SUCH AS EXPENSES FOR NEW EQUIPMENT, INCREASED OPERATING COSTS, AND EVEN HIGHER INTERSTATE TOLLS.

ANALYSTS CONTINUE WATCHING THE INDUSTRY, CONCERNED OVER HOURS OF SERVICE RULES AND THE SYSTEM STRAINING TO FULFILL DEMANDS FOR SHIPPING. HOWEVER, THEY WERE PLEASED WITH TRUCKING COMPANIES WHICH HAD SEVERAL PROFITABLE APPROACHES TO THEIR BUSINESS, WHETHER COMBINING REGIONAL TRUCKLOADS WITH BROKERING FREIGHT AND REFRIGERATED HAULING, OR EXPANDING ON A NATIONAL SCALE.

SO HOW ARE YOU DOING IN COMPARISON TO THE COMPANY YOU DRIVE FOR? DO THESE REPORTS WHICH SHOW TRUCKING COMPANIES IN THE BLACK MAKE YOU SEE RED ? ARE THERE ANY STRATEGIES THE BIG COMPANIES ARE USING WHICH COULD BE SCALED DOWN AND PUT TO WORK FOR YOU? WHAT CAN YOU DO TO RECEIVE A BIGGER SLICE OF THE PIE? NEGOTIATE A BETTER DEAL, GET YOUR OWN AUTHORITY, OR BUY STOCK IN THE COMPANY?

SOMETHING TO THINK ABOUT …