Trucking Companies Lose Money On Q3 Reports

November 5, 2019

Trucking Companies Lose Money On Q3 Reports

You are currently viewing Trucking Companies Lose Money On Q3 Reports
  • Post category:Blogs

As the third quarter (Q3) of 2019 came to an end a few days ago, more and more trucking companies are sharing their alarming reports. All big companies make a reassessment every 4 months to see where their numbers are at. As it turns out, revenue is decreasing exponentially for several top companies in the trucking industry.

It is definitely no news that freight and commercial trucking are going through a moment of crisis. This is due to many different factors. Some reasons that could explain it are the transportation costs that keep going up and the lack of available drivers.

Another issue that also had an impact on this freight crisis is the implement of many laws and bills directed to the sector. Some of them imply higher insurance minimums or expensive repairs to old infrastructure or vehicles. All of which costs money.

There is also a huge issue with the lack of technology use and the way technological advancements, in general, are threatening the role of the truck driver. Companies like Tesla are currently working on coming up with new ideas to make freight more affordable for companies but that might end with the careers of many drivers.

As of this week, several relevant trucking companies all around the country have announced their losses in this quarter. With only one more to go until the new year, some businesses might need to re-think their strategy plan if they don’t want to face even bigger losses in revenue.

YRC, for example, has reported their loss this quarter as $16 million. However, the CEO of the company, Darren Hawkins, had some encouraging words in the wake of the disappointing quarter.

“2019 has been a challenging trade environment all year long, but also a productive year for YRCW. As we look beyond Q3, our path forward is defined and currently well underway with our multiyear strategy,” he said in a public announcement.

Meanwhile, USA Truck also faces a disappointing Q3. The company has incurred a $1.4 million loss. Nonetheless, the CEO, James Reed, also had positive words among plans to cut costs for the upcoming quarters.

“The third quarter marked a continuation of the challenging freight environment the industry has experienced in 2019. A seasonally soft market, coupled with increased trucking capacity in the market, has created an environment where shippers are motivated to allocate a larger portion of their freight to the spot market and low-priced carrier options. This environment continues to adversely impact results in both our Trucking and USAT Logistics segments,” he said.

What do you think of this trucking crisis? Have you also seen your revenue affected during Q3? Let us know your thoughts and comments below!

This Post Has One Comment

  1. Bary

    As a Newbie, I am constantly exploring online for articles that can help me. Thank you

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get a FREE Quote