The American trucking industry has been the subject of plenty of reports in the last year or so. They have been attacked by the Biden Administration, which brought forward many people showing support for the industry. In turn, there is a shrinking list of truckers, and less people wanting to take on the grueling job.
This has led to such things as Yellow Trucking, one of the nation's oldest and largest trucking companies, filing for bankruptcy back in August. Another Seattle-based company, Convoy Inc., folded last month as well. This has now created what experts are calling a 'Great Trucking Recession.'
John Esparza of the Texas Truckers Association says companies are used to this bit of ebb and flow, but there have been some areas hit worse than others.
"You are seeing the drop off in the spot market...that has changed a bit since the end of COVID. The market and trucking industry are adjusting...but you are seeing a lot of change int he relationship between independent contractors going back to work for these companies," he says.
Biden's economy has just worsened things as well, with consumers paying more for common items, and not buying as much as a result. This is now meaning companies are fighting over the hauling of freight just to meet the bottom line. That is a cautiously optimistic sign.
"We still see strong potential for growth when it comes to the amount of freight coming through Texas...there is more growth throughout ports as well, both in the sea, and with Mexico," he says.
Yellow Trucking in their filing for bankruptcy also laid off over 30,000 workers, tightening the screws on an already over tight market.
The problems will not just be felt by truckers either, average Americans are going to end up paying the price for it. It will start with paying more during holiday shopping.
"It will impact the price they pay for it...despite what we will see with holiday sales...there is no such thing as free shipping," says Esparza. "It all ends up on the back of trucking, which ultimately ends up with the consumer."
As mentioned, there are always ebbs and flows in the trucking businesses, and because it is a common occurrence, most of the big dogs have planned ahead for it. Others, not so much.
"The struggle right now is with a lot of the small companies that rely on brokers for their loads, or independent contractors who utilize those brokers, and now are looking for employment with a larger company," he says.
All of this combined might mean an even tougher holiday season that last year.
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