The economy is healthy, in fact it seems to be thriving and while there are no signs of recession, this year has been bumpy for the $800 billion trucking industry. According to the Cass Freight Index, the past two years retailers and manufacturers are transporting less.
In an interview with Business Insider, Christopher Powell claims that his pay has decreased from $3,500 to $5,000 a week. Powell isn’t the only driver suffering from decreased pay. In fact, large well known companies like Knight-Swift and Schneider both cut their annual outlooks. FedEz, UPS, and J.B Hunt have been affected too. UPS’s first-quarter bottom line was below last year’s revenue, including their earnings which were below what they expected.
Many factors come to play, there was exceptionally bad weather in February and international airfreight sank to a three year low. In addition, the potential tariffs that were supposed to go into effect March 1st. Vice President of J.B Hunt stated that goods shipped is down 20%.
On the contrary, this is normal for the trucking industry to see fluctuation. Despite the fact that more companies are going bankrupt or downsizing, the trucking industry has generated almost 12,000 jobs in 2019. At this point only time will tell.