06/17/2022
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Experts say that 2022 will be a year of unprecedented uncertainty for owner-ops.
“This spring, rising inflation, skyrocketing fuel prices, and drastic changes in consumer spending are conspiring against owner-operators, cutting deep into already razor-thin profit margins.
Since the COVID-19 crisis began, more truck drivers entered the industry in response to high consumer demand for goods, but that demand is clearly cooling in response to decades-high levels of inflation and the conflict in Ukraine. After two years of strong freight rates, the bubble appears to be breaking and some industry insiders are sounding the alarm that a major freight market slowdown or even a recession will pull rates down to ominously low levels. Smaller carriers that depend on the spot market for loads are already feeling the effects of plummeting rates.
Experts predict a “trucking downturn” that some motor carriers will struggle through and that others simply won’t survive. Bankruptcies and sudden company closures like the ones that became commonplace in 2019 (think Celadon, Falcon Transport, LME, and NEMF) could become a regular occurrence once again.”
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