Building your Trucking Company amidst a Pandemic

The Trucking industry is among the few industries that are essential to the U.S. Gold standard economy. Thank God we are able to continue driving and continuing to keep our drivers on the road and put food on the table. However, this market is not going to let us earn a big profit throughout this time, there is a surplus of trucks and not enough demand due to the pandemic decreasing the economic buying power. Here are some things to think about at this time to ensure you are best prepared to attack the economic redemption that is imminent after social distancing expires.

Increased buying Power for Trucking Companies

Trucking Companies are definitely buckling down to weather the storm that is the pandemic. This does leave an opportunity for increased buying power in the used and new truck markets. If you have the ability to buy trucks, then now would be the time to do it. I would say just look around at your usual buying sites and talk to your sales representative to gain perspective. If you can outlast the pandemic with the capital you currently have, then I would implore you to see this as an opportunity to create some positive growth for your company.

Trucks are being returned to dealers at an alarming rate due to the biggest rate squeeze ever since 2008. So capitalize on that and reach out to single truck owner-operators as well, to ensure they can outlast the pandemic. If they cannot, there may be a mutually beneficial relationship in taking over their payments rather then letting the companies go bankrupt with their trucks repossessed. However, the pendulum will always swing back in favor of the party having to pay as supply and demand will eventually affect the market heavily over time.

Increase Driver Population looking for Work

The cold truth is that companies are releasing drivers due to the decreased rate of productivity. As we continue in this deleveraging, economically, we will be swiftly kicked into 10th gear when everything is open officially. It is all about timing in regards to ensuring your fleet will start working for the right price. The goal is to ensure you have the most drivers available to ensure your trucks are working round the clock for your customers once they reopen and reintegrate into the market. This is the most opportune time to ensure your trucks are filled with the best drivers whose companies had a more unfortunate end throughout this pandemic. I have received a surplus of calls from drivers and owner-operators looking for work and if you have it, then definitely adjust your work to ensure the driver is taken care of. Creating loyalty is easiest in times of strife because it shows what kind of owner you are and the character of your company. Be prepared for the upcoming stimulus of the economy that is going to dethrone some bigger trucking companies from certain customers.

Shippers will have spots to fill!

When it comes down to it, downsizing for some companies is going to be imminent in this market. Trucking companies that are used to using 90% of their capacity, will indeed, be short-staffed and will continue to deteriorate due to high costs and payments, which will eventually become due. So with that in mind, what is the best course of action? Put your head down and search for work for the future NOW. Brokers are unloading percentages of their business due to the inability to keep payroll intact which will leave some Shippers unhappy with their current supply chain representation. This is going to be a great time to send those emails and make those calls to shippers regarding work for the upcoming month in order to sustain yourself with CONTRACTS for the rest of the year. Longevity in this business is so far and few . With this in mind shippers facing uncertain times want more security and a sure headed company that will be able to fully handle the supply chain if the broker recently left them out to dry on certain lanes.

In a capitalistic society uncertainty is one of the keys to dethroning previous companies that are not productive enough to continue their same rate of service. Make yourself the next trucking company to get the customers necessary out of your terminals and you will eventually become a staple in your city for the transportation industry.

Andrew Gomez
Andrew@AJGTransport.com