Trucking stocks have been on a tear. And for good reason. My question is this: There appears to be a huge shortage of qualified drivers, while the freight volume continues to grow and grow. I think this is going to hurt the bottom lines as competition requires better and better compensation packages. Labor is always the biggest operating cost with the exception of fuel. So despite the growing top lines....margins are going to decrease imo. IE, multiple contraction. Opinion? I know its your thing.
There been shortage of truckers since mid 1990s since it was allowed to have companies not have to be union, from there wages had gone straight down and many companies rely on most "red-necks" not to use internet. Yep, most of the drivers are from red neck country cause most often less education and common sense dealing with where to go for more money. Huge reason of not enough drivers is being away from home for up to two months, so extremely high divorce rates. And no, volume does not grow and grow, Walmart across the nature was not stocking as much, it wasn't cause they couldn't get the products, people simple not buying as much cause economy stinks. Also, always a let down of freight after Christmas just like people don't go out to eat for few months. Almost all drivers get paid by "Cents Per Mile", if you not rolling-you not rolling in the dough, and the CPM I have read is as low as 12cpm and over a buck a mile for working for a company, very few pay by the day, and local in the city pay by the hour. So there are some reasons from less pay, but usually comes down to felons, drivers have too many tickets/accidents. Now pretty much the standard is 2500 miles a week, so you can figure out how much they make with the average being about $35,000, I had never made that low including my first year, but read much and ask drivers tons of questions, my lowest when I drove over ten years ago was $45k and over twice that plus tons of bennies and profit sharing for my highest. But higher paid companies have slower trucks as more miles to gallon at slower speeds, companies that pay less often need to have faster trucks to recruit new driver students, like America, it is ass backwards allowing faster trucks to those who lack experience. Oh, companies that pay more are for reasons that regular driver either doesn't have the skills, mental awareness or government clearances. I did a year of hauling freight I had no idea what is was, no logs books used, got paid $400 a day whether I drove or not and always had armed escorts and year of hauling radioactive freight-most folks don't want to haul it cause extra pain in the arse rules, but was fun, always had somewhere quiet to park as no one wants to park too close, always went to same place and they paid four weeks vacation first year. I watch overall Transportation Index, much freight goes on railroad cars, it is cheaper providing you don't need it within couple days. Oh, it is one of a bucket of jobs I have done in my time besides businesses I started. I was even a bricklayer for a year, my Dad had done it for 36 years. Brutal job, no height too high, heat and cold you work through that, wobbly scaffold try not to think about it. I am happiest when I work and it not a job if you love what you do, when it becomes a job, I quit and do something else. Best jobs are one's I can do some trading each day to keep my skills sharp.
@Handle123 interesting comments. I read about experiments in the USA to use fully autonomous trucks, where no truck driver is required any more. Do you think that this will impact the industry?
Hahahahahha... he says he was a truck driver just over 10 years ago? When the hell did he have time to develop all his algos that are supposedly doing all his automated trading. When did he have time to train all those guys he says he trained? He always makes it sound like he has been trading for decades, and now just 10 years ago he was driving a truck? My gosh... his stories never end.
Stick and stones may break my bones, but I don't live here like algofy- 1,165 posts in 4 months? ROFLMAO
You be surprised. Some people live life and a lot of things happen and stories that they tell as a result. Myself,I been told few times that i should write a book and this was long time ago. Once I was crossing the border of none EU country and for some reason I started conversation with two Italian dudes and when arrived to my destination they said:"Can we follow you on FB?" I am not on FB and i don't take pictures I always think i will come back. I understand why they said that,there is just a lot that happens to some characters. This is what life is to some who are restless or not sheltered.To hear how they deal with it,how they stand up again or stories that are genuinely captivating,because people were part of something interesting. If i wrote here some of my stories you would call bullshit and would not believe. Life is a lot more quiet now as far as "action" ,but on other hand I am putting together biggest "story" that is bigger than all I done before. Handle123 is one of those guys.he has stories,things happen. Not everyone was a geek who ventured into trading or had an office job,finished MBA. I personally think programmers are the most boring bunch I ever met,it just nothing happens in their lives.They are sheltered,shielded or who knows what .