Trucking Companies Failing at a Record Rate
More trouble on the horizon for the trucking industry and perhaps the economy itself?
A recent article stated that trucking companies were failing at twice the rate they were in 2018. Twice as many trucking companies have closed their doors in 2019 and this trend is likely to continue as insurance rates continue to rise because of huge lawsuits and a weakening economy.
Suing the trucking industry is so lucrative that many law firms focus just on law suits involving 18-wheelers. They have developed their own experts and forensic analysis teams. They have molded an entire industry into the art of how to get money from 18-wheeler involved wrecks.
Is it any surprise that as the settlements have risen move law firms have jumped on the band wagon? The actively advertise and solicit these types of accidents regardless of how small. You cannot help but see their TV commercials and billboards. If you have an accident involving an 18-wheeler I can guarantee you will be getting a phone call or visit. Why? Money.
Add to this the weakening economy and drastic increases in regulation the past 10 years and you can see why the trucking industry is struggling to find balance.
Who gets hurt when transportation companies fail? We all do.
Employees and vendors are the most directly affected. Many times, employees also lose back wages in addition to their current jobs. Vendors lose money owed to them by the transportation company as well as future business. Shippers many times have to find their freight or find a way to ship it at the last moment.
Longer term it affects the price of all goods we purchase. If we lose too many trucking companies you can expect the prices to rise on all goods you purchase.
As the surviving transportation companies raise rates to adjust for increased cost and lack of capacity you will also see an increase in the price of consumer goods. This leads to inflation which starts the cycle all over again.