It's Going To Be A Long Downhill Slide For The Economy

There is no chance of avoiding recession - we are already in one. There is no chance that things are going to get better any time soon. Why? Because the core of our financial system, and the world's financial system for that matter, has been crushed and it's going to take a long time for these problems to work their way through the system and allow the economy to move forward again. How will this affect the trucking industry? The same way it affects the rest of the country - it's going to put a hurtin on it.

As fuel prices plummet, so does the amount of freight available, and so does the price per mile the trucking companies will be able to get for the freight. Drivers that had been sitting because deadheading for freight was too expensive with high fuel prices, will now be sitting because there is less freight available.

What about hiring? Will trucking companies still be hiring drivers? You bet! At least the larger carriers will. You see, the larger carriers prosper more than smaller carriers in hard times because they tend to have better financing options available to remain in business and their size allows them more leverage to negotiate better fuel, parts, and maintenance prices. They also tend to offer important services to larger shippers like drop and hook trailers being available, quicker response times when freight is ready to roll, trailer storage options, and greater flexibility when freight speeds up or slows down. Because of this, larger trucking companies tend to hold on to some of their higher paying accounts without the big falloff in prices than the smaller companies.

So jobs will still be plentiful in the trucking industry, and there will be enough freight to make a living if you're a driver, but times are going to be tough for a long time to come. The banking industry is de-leveraging - meaning they are cleaning up the debt on their balance sheets and writing off bad loans. The world's economy is based on the flow of money, and until the source of those money flows, the banking system, is able to begin lending again, growth will grind to a halt. Companies that count of banking lines of credit are going to see their funds dry up and could possibly face bankruptcy. Companies that have stable cash positions yet count on financing for their growth will not have any financing available and all potential growth projects will be suspended.

This type of market meltdown will take many, many months, and more likely years, to work through. But for the foreseeable future, truck drivers will have work and will be in demand. How much money they will make in the coming months and possibly years will be less than it is in a prospering economy, but nonetheless they will have work and will be making a living - which is more than a lot of blue-collar workers will be able to say soon.