NWA Online reported that some trucking companies are feeling the pinch of the slow economy. The article reported that some of the tough times may be due in part to the reduced inventory conditions that many retail stores are operating under.
The main discussion was dedicated to JB Hunt trucking and PAM trucking. Both companies have seen a slow down and reduce the number of tractors they have on the road.
According to the article one retailer in particular, Dillard’s Inc has reduced its inventory by almost 20 percent over the last year. The article points to cash strapped consumers as the root cause of the reduced inventores. The article points out that consumers ae saving money due to the countless lay offs and furloughs.
The article stated that JB Hunt trucking cut their tractor count by 1200 in 2008. PAM has also cut almost 300 trucks from its fleet. With less freight to haul its no wonder the companies have tride to cut back and reduce their power unit count. Another note from the article was an announcement that JB Hunt made to sell an additional 700 tractors with a large portion of the sale coming from its intermodel and dedicated fleets.
Another important issue covered in the article was the issue of employment. With reduced freight quantities comes fewer truck driving jobs. PAM trucking along with cutting its fleet has had total miles traveled each work day drop by almost 100 miles. That is a significant number for any trucking comapny.
The article also mentioned how large retailers like walmart are doing what they can to save as well. Walmart for example has moved more cases in fewer miles during this economic slow down. That means fewer truck loads for other carriers to move for them.
More information on PAM trucking and JB Hunt form the original article written by Kim Souza and Lana F. Flowers of The Morning News can be found at http://www.nwaonline.net/articles/2009/09/12/business/091309bistruck.txt
