Not All Truckers Feel Economic Pinch

Gas prices may be down, but that hasn’t made life easier for most of America’s truckers.

The transportation industry proves especially vulnerable to economic ebbs and flows. According to the U.S. Department of Transportation, the amount of freight for shipping dropped 4.3 percent in August and September. That number – 4.3 percent – might not seem large, but it means that many truckers have found themselves unemployed. According to one investment bank, 127,000 independent truck owners and 2,609 trucking firms have failed this year.

Why don’t low gas prices benefit truckers? The economic recession has prompted consumers to stop spending. Stores don’t need to stock items if Americans aren’t buying.

Independent truckers face special difficulties – many do not make enough trips to cover their operating expenses. Unlike truckers who work for large companies, most independent truckers cannot assess fuel surcharges. When fuel prices were high, independent truckers paid out-of-pocket. Now that companies hire fewer drivers, many independent truckers cannot recoup their losses.

But not all truckers are suffering. In fact, a few companies continue to report profits. For example, North South Leasing, a Michigan-based truck leasing company, has seen its lease applications triple since June 2008. “Other finance and lease companies made their standards so high that people who would receive credit just a few years ago can’t get it today,” said General Manager Bob Anderson. “We keep our standards reasonable.”

The result? Anderson reports that his company has booked 80 new, active leases from clients who are offering more collateral and accepting shorter terms. North South Leasing leases semi- trucks to owner-operators, who run the trucks as small businesses. North South Leasing clients appear to be thriving even in today’s tough economy.

For more information, visit www.nsleasing.com.

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