tractor has risen to $124,000 from $84,000, according to
data from investment firm BB&T Capital Markets. In addition, late-model used trucks—rigs built between 2007 and
2010—are in short supply. Today, there are between 350,000
and 400,000 fewer late-model used trucks available than at
nearly any time in the past 15 years, the firm said.
The escalating cost of new trucks and the shortage of less-expensive rigs are putting severe pressure on independents
that lack the economies of scale of larger, multi-unit fleets.
In the past, about half of all owner-operators would buy
new trucks as part of a typical business cycle, Spencer says.
Today, that number has dwindled to about one-quarter, he
adds.
Spencer acknowledges that today’s rigs are better built,
with longer life spans that don’t require as much turnover
as in the past. However, he says most of the decline is attributed to the rising tab for new trucks, which is becoming
increasingly difficult for independents to swallow.
Complying with federal engine emissions standards mandated by the Environmental Protection Agency alone contributes about $10,000 to the cost of a new truck, he says.
Environmental compliance costs are just one of several
government mandates that have hit truckers’ balance
sheets. Others include CSA 2010, the new driver safety
grading initiative; recent revisions to the drivers’ hours-of-
service regulations that could force truckers to add more
rigs and drivers to their fleets; and requirements for drivers
to install electronic recorders in each vehicle to monitor
drivers’ compliance with hours-of-service requirements.
The latter two initiatives are, or have been, subject to legal
challenges by the industry.
NO GOING BACK
Compounding the industry’s angst are the accompanying
costs of state regulations, as well as the proliferation of
class-action lawsuits brought by plaintiffs’ attorneys seeking
heavy monetary damages in the wake of truck-related accidents. England says his company faces major liability issues
in California, where its footprint is “two to three times larger” than in any other state.
England is confident that his company will work through
the treacherous road ahead. But his optimism is tempered
by the knowledge that the industry will never again be what
it once was.
“We are going to find ways to be successful, no matter
what,” he says. “But is it going to be as much fun as it used
to be? Probably not.” ;
The most versatile Warehouses in the world
