OT question for Griff

[mescalero1]

Griff,
I have been watching the financial debacle the last couple of days.
Conway has reported downturn in commercial freight as a causation for thier lower perfomance.
What are you seeing out on the road from your perspective?
Are fewer trucks hauling?
Figure you might have your finger on the pulse of things that are just below the surface.

[Griff]

Yep, freight is down. It's taking more ingenuity and aggressive marketing to get the same miles of a year ago. Also fuel prices have eliminated a number of independents and even owner/operators that are leased at fixed mileage rates. Freight rates are basically the same as they were 30 some years ago when Elizabeth Dole (as head of the Transportation Department under Reagan) de-regulated the trucking industry. That was a healthy market driven action in the short term, lowered freight rates and allowed increased competition. But... over the long term, the increased competition along with the fact that truck drivers are exempt from the Fair Labor Standards Act have seriously devalued the service and forced more "fudging" of logs and other tools to keep drivers and the motoring public safe by limiting the number of hours a driver can work. Freight is about the only commodity that costs similarily today to what it did 30 years ago. The only saving grace for many of us are the mandated surcharges to offset the cost of fuel that all companies are required to pass thru to the fuel purchaser, but some don't; or deduct for unloaded miles, or pay reduced amounts of the surcharge if applied to all miles.

Now... freight is usually at it's highest at this time of year for general freight companies... mainly due to delivery of orders for Christmas items and seasonal additions to retail outlets. However, it is all related, the automotive industry is falling short in sales, which frees up carriers that normally cater to that industry to carry other products.

And yes, there does seem to be fewer trucks on the road, used truck lots have more inventory than I recall seeing before, loans to purchase are harder to get, repossessions are at all time highs.

But... all that is a good thing, for now, outside major metropolitan areas, I can usually find a place to park after dark. In recent years it has become increasing difficult to find parking in truck stops after about 6pm.

[mescalero1]

Thanks Griff,
Figured you would be able to put a human touch on the numbers I see looking at a stock ticker.