Close to 800 trucking companies failed in 2019 (795 to be precise) according to numerous sources focused on the trucking industry. This accounts for approximately 24,000 trucks removed from the nation’s transportation capacity.
I think it’s fair to say 2019 wasn’t the best for our industry. We all know about Celadon’s closure, but other big companies, including LME, Falcon, and New England Motor Freight also went under.
Many cite overcapacity in the market as the root cause of these failures. I think financial mismanagement as well as operational mismanagement had much to do with the issues in trucking last year. At Jax Transport, LLC, we have a relentless focus on the operational details that make drivers happy, and that make our organization profitable. It should be noted that, according to a recent survey by ATRI, overcapacity doesn’t make the top 10 list of concerns from those in the industry.
According to ATRI’s annual “Critical Issues in the Trucking Industry” report for 2019, which surveys both company owners as well as drivers – “hours of service,” “driver compensation,” and “detentions” top the list. They are not #1 on the list however. Attached is the top 10 list from ATRI.
Please give us your opinion on what’s wrong or right with the industry and things we all can focus on to improve business for everyone.
Love to get your input on what concerns you have for the new year. Below is a link to the complete ATRI report. Feel free to post your thoughts on this article below. Thanks.