2019 is turning out to be a hard year for trucking companies.
So far this year, the current number of companies closing down their business is around 640 business with an estimated 2,600 drivers being without jobs. Compare this number with 2018 year-end totals and things are not looking good. The businesses in 2018 that shut down consisted of 310 trucking companies with around 2,800 drivers.
There have been several well-known trucking companies that have shut down this year. A couple of them left drivers out on the road making deliveries. Some of them have been in business for decades.
Although some business owners say that their shipment rates this year are similar to last year’s rates, the cost of business has gone up. This leaves margins that make it difficult for them to continue as a profitable business. Many of the trucking companies referenced the high cost of insurance and labor costs as the primary reasons for shutting down. There have also been references about regulations costs, tolls, and tariffs on imported goods leading to a decline in business.
For the drivers, they can find an industry facing a shortage of truck drivers. Although they have lost their jobs at these trucking companies, there should be other opportunities available for them to make income.
As the year continues, we hope that there are not any further surprise closures in the trucking industry.