Coronavirus triggered massive truck shortage east coast

Yes. I've been around a long time. I've seen it. Research how restrictive the ICC was.
You're going to have to figure it out on your own though.

I called the rates tanking and I'm calling wages being gutted by next January without drivers severely restricting supply.

 

You really have no clue.

 

If you say so.

 

I started in this industry in the late '70's, at the tail end of ICC carrier regulation. This is how I remember it....

Before deregulation most O/O's either hauled exempt commodities, leased to an established regulated carrier (usually under an O/O division), trip leased, or some even did the hot midnight express (at great peril).

Unlike now, obtaining operating authority involved a long, expensive, and complex process, with no guarantees, that involved retaining the services of an attorney, well versed in transportation.

One had to show there was "a need" for a new carrier to haul specific products, within a specified area that was currently not being served or was underserved. This of course required the help of shipper(s)/manufacturer(s) who attested to the need of your services to fulfill their business activities. Much supporting paperwork was involved the process. Basically, you had to "prove" your services were necessary. If approved, big if, your commodities hauled and your geographical areas (states) were clearly defined. As you can imagine, established carriers would protest. Some parts of the country were sewn up tight, basically almost impossible to be granted authority.

Guys wanting to start their own trucking companies cried foul because the way they saw it, established carriers had a monopoly over the transportation industry, which denied them the ability to participate in free enterprise. Congress agreed, along with president Reagan.

In 1980, the industry was deregulated, thus allowing guys to very easily start their own trucking company, but it also allowed them to cut rates. Previously, when the industry was "regulated", carriers had to post their rates. These rates kept the industry on a pretty even keel, which of course included driver's wages, pensions, & benefits. Unlike now, Unions at that time yielded quite a bit of power over the carriers they worked for.

Since 1980, it's progressed to being pretty much a free for all and subsequently trucking has morphed into what we have today. Anyone with a dream & loaned money (debt) can enter the arena, but for everything one gains, there always seems to be something lost. Economically speaking, like most everything, it comes down to supply & demand.

Personally, I believe the pendulum has swung too far the other way, but this post is long enough. So, that's another discussion for another time, truck on...

 

I just hope some
People here understand what you said . Even dough is well explained , but some people see politics in everything.
Thank you, sir.

 

That's a great lesson everyone who sits behind the wheel should learn. History is important. I heard this just a week or two ago on the 'Over the Road' podcast and learned a few things I didn't know.

Check out that podcast. It's a good one.

 

This is a certainty. companies in every industry are on hiring freeze even while they need people. The supply of jobs is the lowest and the supply of workers waiting by the phone is the highest. Wages must fall as a consequence.

 

ICC was the fence that kept competitors out. Loved by the top dogs, disliked by the bottom dogs and hated by the ones who wanted in.

Today there are so many factions in trucking they cant even speak the same language to insult each other. So the only universally powerful union left to help the trucking industry is high fuel prices. Thats the ONE call to arms that makes every truck charge more and raise rates.

And yall better hope they come soon, but I would not hold my breath.

 

Humm , who could imagine that ? No one .

 

I started making preparations for this crash in 2010. It took longer than i expected for it to arrive. But i think its gonna be bigger than i anticipated too.