State of our economy

I just wanted to leave this here for everyone to read. I run a trucking company with 30 trucks and 60 trailers. I want to let everyone know what I see happening first hand. There is a massive pinch happening. New equipment is not available. normally we replace 7 older trucks with new trucks every year. last year we got 3. this year we got 1. there are no build dates yet either. to compound this problem, parts are not readily available for older trucks (or newer trucks for that matter) that are breaking down and are sitting for weeks at a time or sometimes months waiting on a sensor or a turbo kit or bla bla bla… its getting to the point that when trucks breakdown out on the road it takes 5-6 hours to find a towing company or a road service company: Not only because of the shortage of employees, but because the service companies have 2 or 3 trucks of their own sitting at their shop broke down waiting on parts.

This coupled with the all time high fuel prices is making the cost of shipping anything skyrocket. Before this fuel hike, it cost me 700 bucks to fill a truck. now its 1200. Even if the fuel prices knifed back down (which is unlikely) I do not see shipping costs going back down based on the fact that there are more and more older trucks on the road breaking down, which means there are less trucks on the roads period. From here its a simple economic supply and demand issue. less trucks on the roads means companies that need supplies shipped will be paying more to ship.

Prior to any of the above stated concerns of mine, the transportation industry was seeing a decline in drivers. Its an aging profession with not a whole lot of younger people entering. I also read that a good number of drivers found new professions once marijuana was legalized in many states because drivers are not able to use it, even on their off times due to mandatory random drug testing.

These problems are industry wide; not specific to my company only. Because of this, I predict that we will be seeing hikes at the stores for goods and food like we have never seen before. I see companies that are linked to expendable purchasing having real bad years because the general public will be tightening their belts and spending more on needs and less on wants. I may be starting to ramble a bit, but i felt it prudent to let everyone here know of the things i am seeing unfold before my eyes.

14 Likes

Some of us saw this coming in January 2021. No surprise here. Watch the debt markets.

Also - https://www.cnbc.com/2022/05/05/feds-propose-first-major-revamp-to-fair-housing-rules-since-1995.html

“The changes would tailor the Community Reinvestment Act’s approach to making sure banks are not engaging in “redlining,” or refusing to put money in areas often populated by minorities and lower wage earners.“

2008 on the phone. Pick up.

1 Like

2008 on steroids…

2 Likes

Thanks a lot, bud! This is really helpful. May your business be blessed <3
We’ve had clues for a while now, but it help getting confirmation like yours.

2 Likes

thank you

I’ve been wondering for awhile if we will see a shift towards more freight by train. @devize what do you think?

I can not say for sure, however imo I don’t think so. Rail still has to be transported by another means eventually. I could see the rising fuel prices used as a push for electric vehicles including semi trucks. After all, if there is one thing we have learned lately, it’s to never let a crisis go to waste! This opinion is just speculation from a cynic though.

1 Like