Trucking industry insiders appear to have incorrectly dubbed the modest freight transportation slowdown a “recession.” That’s a big, scary word that garners attention. It also gets people who haul freight for a living to follow the splashy headlines known as “click-bait.”
The only problem with “freight recession” and “freight bloodbath” prognostications is the hard facts do not currently support the economic condition. Truth be told, recent data points to CDL employment and several business factors pointing toward a robust remainder of 2023. While the future is always uncertain, these are things for truckers to feel good about.
Trucking Employment Hits Another High
A so-called freight recession occurs when there are fewer CDL holders moving goods and materials. But a recent employment report issued by the Bureau of Labor Statistics (BLS) shows more truckers were working in April than ever before.
According to the BLS, transportation and warehouse employment crossed the 6,743,000 threshold in April. That marked the third consecutive month of growth, each setting a new high-water mark. Looking solely at truck transportation, the number of employed truckers rose from 1,606,300 in February to 1,612,500 in April. Again, each month beat the previous record. During April 2022 — before the freight recession — there were only 1,571,700 CDL holders gainfully employed in truck transportation. Other related categories also posted increases, except for transit and ground passenger transportation.
Truckers Remain in Demand
The trucking news coming out of Alaska appears to be all the truck stop talk. Drilling and mining projects are gearing up and companies appear desperate to onboard qualified truckers. Outfits such as Alaska West Express are looking to hire upwards of 100 drivers. The company is offering $150,000 to $170,000 salaries, based on $1,500 for every Fairbanks and Prudhoe Bay round trip load. The organization reportedly increased its compensation by 11 percent this year alone. Truckers working in Alaska aren’t likely to feel the recession pinch.
Are Declining Diesel Prices a Bad Thing?
Media outlets such as Business Insider are trying to spin the lower cost of truck diesel as a negative. In a recent article, the platform ran a headline: “The US economy is slowing down. Just look at the freight recession that’s sent diesel prices tumbling.” The last time anyone checked, diesel was the number one trucking expense. So, are lower operating costs now a bad thing? Not the most persuasive fake news narrative.
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