It is much easier to get through an economic downturn when you have little or no debt. Unfortunately, most people today have a lot of debt. Carriers large and small are in difficulty. More than 20,000 carriers have gone out of business so far this year. Great Wide filed for bankruptcy a few days ago. This is a billion dollar corporation. I think this is much more than a recession. It is important to reduce your debt when the economy is down. Bankruptcies are at record highs and going higher. During the Great Depression of the 20th century some people did well. Things were not bleak for everyone. Most did suffer greatly during that time. Many of those who had savings and invested came out of those times very well off.

 

When they already own the truck, though, they need to keep it moving. That's why company drivers are run like slave labor, to get as much as possible out of the money sunk in the truck.

Lot's of good posts, here. The winter isn't so bad when you have wood for the fire and beans in the cupboard.

 

I think the big companies will shed company drivers before O/Os. An O/O costs very little and the company doesn't care if they sit him 3, 4, 5 days because of no freight. Their own trucks the payments still goes on. I think you will see them farming out more freight to either independant O/Os or small fleet owners (Like Gman) when they have more than their own O/Os can't handle then pull back to keeping their own people busy when it is slow. A company nets as much, or more, from an O/O than they do from their own truck. The main reason they have their own trucks is that they can sign big, multi load, contracts and garauntee they have trucks availiable to move it.
My plan for a major down turn, go fishing

 

We'd have to see the large companies stop buying trucks before it could happen this way. In the meantime, the trucks they have they'll want to keep moving. Over the next year or two, the easiest thing would be letting O/Os sit until they quit.

That is something to pay attention to, tractor purchases by large companies. If they stop buying trucks they'll start laying off drivers.

 

They have contracts they can't get out of, dive by any "Big company" Yards to see it ! The Werner yard on I-70 east of Columbus must have 500 new truck sitting there and a kid I know who drive for them wants a new one cuz his is a POS and they say "Can't do it right now, but hang in we will get you one".

 

When I'm feeling down or when I get worried about financial/economic issues, I listen to Dave Ramsey. His show always makes me feel better about life- it's about overcoming financial crises. Whether you're in one or not- it's good to hear his take on things.

 

But he always wanted us all to lease to Great Wide ??

 

And where is your avitar ?? it was there, it was gone, it was there, now it is gone

 

I am not sure that measuring whether carriers are purchasing trucks is s sign that layoffs are eminent or not. I would rather expect many carriers to keep what they have for longer periods to conserve capital. Some carriers can buy trucks but not have to start making payments until they are actually put into service. I know a carrier who is able to do this with their lender. They purchase the trucks, have them lettered and prepped but don't need to start making payments until they put a tag on them and start putting on the miles.

 

I like Dave Ramsey. He makes a lot of sense. I know one woman who went through his course and is now debt free. Her credit was really messed up and now she has a nice home and great job that she enjoys. She didn't think that she would ever get out of debt or own a home.