White truck on the road under blue skyMoving it Forward: Dropping Oil Prices

Trucking capacity has been a hot topic for as long as I have been in the transportation industry. There are many items that can affect capacity and one of the biggest is energy prices. Recent drops in oil prices has caused fuel prices to drop to levels not seen in several years. This drop in fuel has created savings for most customers in regards to the fuel surcharges they pay. This drop has also created opportunities for trucking companies to leverage their capacity into greater earnings. Most trucking companies own less than 17 trucks. We have witnessed a trend that these smaller companies are not lowering their rates in proportion to the decrease in fuel costs. Carriers are using their capacity to keep rates high even when their expenses are lower. They are doing this to increase pay for more drivers, upgrade equipment, create a financial cushion and to generate earnings for investors. However, this has not led to an increase in overall capacity. To continue reading click here.