Trucking Industry not Immune to Pandemic's Economic Woes

The trucking industry lost a reported 88,000-plus jobs in April, with speculation circling on whether the industry decline is short-term, due to the pandemic, or more of a long-term industry shift. 

According to data from the Bureau of Labor Statistics, 1.4 million jobs were reported in the trucking sector in April. That's a decline of 88,300 from the previous month, and marked the lowest figure since November 2014. 

While not all of the jobs lost are truck-driving jobs - some may be back office personnel and other support staff - the numbers are still alarming. 

The trucking industry job losses would seem to be counterintuitive, since more consumers are ordering goods to be shipped to their homes or nearby stores, as in-person shopping has fallen somewhat out of favor. 

But low margins that make hauling freight less profitable for trucking companies have caused the firms to cut back, thereby reducing the available routes for drivers. And in some cases, the available routes aren't profitable enough for drivers to make them worth their while to take on the work.

Those economic difficulties come even as the critical role of trucking in the business landscape is highlighted, as stores try to maintain adequate stockpiles of goods to meet demand. There has been a heightened appreciation of service providers such as truck drivers, as the public realizes the vital role they play in maintaining some sense of normality and continuity in everyday life. 

However, the job remains fraught with risks and financial insecurity, such as a lack of paid time off or sick leave faced by many drivers. The risk of encountering corona virus now adds to the perils of the job. 

But the hope among industry leaders is that the effects of the pandemic will wane in coming months, and the economy will regain its footing. That's not expected to happen overnight, though.

"We would not anticipate the level of freight volume in trucking to return to pre-crisis levels until early 2021," said Avery Vise, vice president of trucking at FTR, a transportation industry information provider. "We might even lose some sizable motor carriers as well as numerous small carriers," Vise said in remarks to Aljazeera news.