Truck fleets report plunging loads, layoffs amid Covid-19

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TORONTO, Ont. – Trucking is identified as an essential service, but Canada’s trucking industry is under immense economic pressure in the face of Covid-19 – leading to plunging revenues, layoffs, and cash flow issues in recent weeks. It isn’t expected to get better anytime soon. The challenges have been identified through separate surveys by the […]

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[loaders]

I would like to add a broker’s perspective on this, and I encourage my fellow brokers to chime in. Yes, we have experienced a dramatic drop off in volume in April versus March, approx 50%. We have some staff working from home and some continuing to go to the office. So far, we have avoided any staff layoffs or reduced hours. As freight volumes have decreased, competion for the little that is available has increased and rates for spot market freight have suffered as everyone, brokers and carrier, fight over these few scraps. Anyone who has customers with contractual arrangements that are still operating, is indeed fortunate. I for one, will be seriously examining the Federal government’s wage subsidy program which can be applied for starting this Monday. It appears to hold the promise of being able to weather these turbulent times for a couple of more months.
This post is certainly not intended as a “doom and gloom” forecast, but I think it is time for owners of brokerage and transport companies to have a serious look at what the next few months have in store, if you haven’t already.

 

[lowmiler88]

loaders I couldn't agree more we are all fighting for scraps and it is no ones fault this is a free market economy. My biggest concern is getting paid for these scraps in the months to come. We are in a good position, my fear are the companies that where just struggling to survive before this all started will not survive. We are finding trucking companies that have trucks parked brokering loads that may be double brokered which is a huge concern for us, not right in good times and very troubling in bad. The shit show that is going to happen in the States when they all open early really concerns me I think we will find that we will just not send our trucks to certain States(Florida) for the protection of our drivers.

 

[loaders]

Good point about keeping an even keener eye on your receivables these days. As you mention, watching out for not only your manufacturing customers, but also carriers that have decided brokering their freight is the answer as opposed to hauling it themselves. An increase of bad debt could be the final nail in the coffin for some companies already on skating on thin financial ice.

 

[PT INC]

i honestly haven't seen market like i am seeing now, the ripple effect has started and many companies will go under not just trucking.

i am seeing broker post loads for 550.00USD for 1100 mile runs

 

[loaders]

Poorly managed, under funded companies will experience a very difficult time surving an extended period of economic slowdown. It is an unfortunate version of “survival of the fittest“.