Just two weeks ago, President Trump welcomed truckers to the White House and acknowledged their sacrifice in the war against COVID-19.
On May 1, truckers arrived in convoys to the National Mall to deliver the message to the White House that spot rates have declined so low, that they no longer can make a living.
As the economy remains mostly-closed, freights have dried up, resulting in shippers slicing freight rates. Owner operators who, unlike company drivers, have to pay for fuel, insurance and upkeep have difficulty making ends meet.
There are still loads available, but the rates have gone down so much, sometimes, drivers would take them and after paying for expenses not make much of anything. Despite low fuel prices, the cost of insurance is the highest ever, not to mention wear and tear of the truck.
The truckers blasted their air horns to get the attention of the White House, but I’m not really sure what the President can do about low freight rates. Many small trucking companies have applied for the SBA loans, but very few have gotten accepted. The majority of the Paycheck Protection Plan loans have been given to larger companies including public companies who can weather the storm better.
Perhaps the administration should create an SBA loan exclusively targeted to the trucking industry. Without these truckers, store shelves would not be stocked, and the nation’s economy would grind to a screeching halt.