The Supply Chain and Fuel Prices
Let’s face it if gasoline costs continue to climb, supply chain difficulties will escalate.
It’s already difficult to make a profit as a modest one to five-vehicle fleet trucking firm after you pay for gasoline, pay your drivers, and do routine truck maintenance. After those tasks are completed, the truck’s owner will have very little to carry home to their family.
This is something I know for a fact because my husband and I operate a small trucking company in Alabama. When fuel costs began to climb, we were able to make it work, but this did not persist. As the cost of gasoline rises,
Another aspect has been the capacity to hire and retain people. The lockdowns appear to have elicited a phobic response from the American workforce.
Getting and maintaining drivers has become a serious challenge, regardless of how much you pay them. I’m not sure if it was the lockdowns or the unemployment checks that caused the problem, but finding drivers willing to stay in a truck and work a whole day is nearly difficult. Nobody benefits from a truck that isn’t moving.
When it comes down to it, a corporation must first pay for the truck and the drivers. The driver’s income, gasoline expenses, truck payments, and maintenance charges must come first, with the company/owner receiving what is left over.
By the conclusion of the Biden presidency, I anticipate that more than half of the small trucking firms will have gone out of business. I would nearly guarantee it, as it appears we are on the verge of a recession. I know that lumber accounts for 90% of the freight carried by my tiny fleet. A recession implies fewer homes are being developed. As a result, less lumber is sold. If there is a recession, I know it will be a miracle if we do not have to declare bankruptcy and close the doors. As things is, I’ve begun to hunt for another work. I’ve been in charge of the…