'No profit right now': Trucking industry facing leaner times as consumer demand drops

Downtown Oakland buildings are shown behind trucks lined up at the Port of Oakland in Oakland, Calif., Thursday, Feb. 18, 2021. “It’s slow right now, not too many loads," said the owner of JK Transport, a Brampton-based trucking company Singh launched 15 years ago.A new tractor now costs him $225,000, up from the $135,000 he paid in 2019, Singh said. Trailers for his fleet of 15 semi-trucks have doubled in price to $80,000. And he can only charge $1.

Canadians continue to shell out on services ranging from airfare to fine food, but their craving for items shipped in a box has fallen since 2021 and 2022. An even steeper drop in shipments in the United States has also dented Canadian trucker revenues, as drivers struggle to find loads to haul back to Canada after making deliveries south of the border, he said.

"You have a number of carriers that are in very, very tight financial scenarios," said Gradek, who teaches supply chain management at McGill University. Big companies rely on less-than-truckload businesses too. TFI International, the Montreal-based trucking giant with more than 25,000 employees and 11,000-plus tractors, gleans nearly half of its revenue from the segment.

He pointed to consumers:"They're not spending as much on the home or buying a TV or patio furniture."

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canadian trucking industry facing leaner times as consumer demand dropsTrucking HR Canada says declining demand prompted an employment decrease of more than 20,500 jobs in the first three months of this year compared with December 2022
Source: globebusiness - 🏆 31. / 66 Read more »

Trucking industry facing leaner times as consumer demand dropsMONTREAL — The Canadian trucking industry faces a shaky market as cargo volumes and freight rates continue to fall compared with the soaring highs seen during the pandemic.
Source: SooToday - 🏆 8. / 85 Read more »

Trucking industry facing leaner times as consumer demand dropsIndustry sees challenges as consumers spend more on services and less on household items
Source: PGCitizen - 🏆 65. / 51 Read more »

Trucking industry facing leaner times as consumer demand dropsIndustry sees challenges as consumers spend more on services and less on household items
Source: BurnabyNOW_News - 🏆 14. / 77 Read more »

Trucking industry facing leaner times as consumer demand dropsThe Canadian trucking industry faces a shaky market as cargo volumes and freight rates continue to fall — in step with downward consumer demand — compared with the soaring highs seen during the pandemic.
Source: BNNBloomberg - 🏆 83. / 50 Read more »