Trucking Slowdown, Hopefully Just A Market Correction

Now that I am retiring and getting my CDL this happens, hopefully a recession is not on the horizon.

Trucking Companies Scale Back Fleet Purchases on Tepid Demand

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Global Trade In Freefall

I would say from a company driver perspective you have little or nothing to worry about, especially if you go to work for one of the major carriers. Trucking always has fairly large fluctuations in demand and pricing but there's no such thing as a time that a company driver at a major company can't make a solid living.

Even in late 2008 and into 2009 when the economy hit a brick wall most trucking companies were hiring just the same. We had tons of drivers coming through the website that got their career underway during that time and they were able to turn the miles and make good money in spite of economic conditions.

Now if someone is working for a company with five trucks then I have no idea how this will play out. Small companies obviously don't have the financial backing and flexibility that the large companies have to absorb losses and scale back their fleet sizes. So things can be more volatile for smaller companies.

I think it also depends on where the small company is making its money. If it's competing with larger carriers for dry van and refer loads that's one thing but if they work in more of a specialty part of the industry, I don't think they see the same effect.

I think it also depends on where the small company is making its money. If it's competing with larger carriers for dry van and refer loads that's one thing but if they work in more of a specialty part of the industry, I don't think they see the same effect.

Nobody is isolated from the competition in this business. You only have freight to haul until someone comes along offering to do it a few cents cheaper. And no one I've ever heard of is operating in such a specialty niche that they have no competition. Heavy hauling? Hazmat? Military ordinance? Money printed by the Feds? Doesn't matter. There are plenty of companies doing anything you can imagine doing with trucks. If someone finds a lucrative niche it only lasts as long as it takes for the competition to gear up and take it away from them.

In fact, when times get tough you'll find people seeking new opportunities. So the companies that have found a nice niche are in even more danger from outside competition during tough times.

I would say from a company driver perspective you have little or nothing to worry about, especially if you go to work for one of the major carriers. Trucking always has fairly large fluctuations in demand and pricing but there's no such thing as a time that a company driver at a major company can't make a solid living.

Even in late 2008 and into 2009 when the economy hit a brick wall most trucking companies were hiring just the same. We had tons of drivers coming through the website that got their career underway during that time and they were able to turn the miles and make good money in spite of economic conditions.

Now if someone is working for a company with five trucks then I have no idea how this will play out. Small companies obviously don't have the financial backing and flexibility that the large companies have to absorb losses and scale back their fleet sizes. So things can be more volatile for smaller companies.

Thanks Brett, helps me feel a whole lot better... I know very little of this business yet and know it has its ups and downs but I guess no matter what happens the goods have got to move.