Trucking companies across the United States are being weighed down by their fleets of unused vehicles. Companies across America purchased whole new fleets just years ago when the demand for transportation was high – and since manufacturing activity and import growth has slowed down, these companies have found themselves with smaller freight volumes and unused trucks.
Corcoran Trucking’s Fleet is as Busy as Ever
Corcoran Trucking, however, continues to thrive. With over 50 years of service, our fleet of trucks are always there for our clients, offering trucking in Alaska and to the lower 48 states. Our produce hauling service is more popular than ever, and our fast and efficient routes mean that companies and other private operations rely on us all the time.
Other companies are not faring quite as well. Large trucking companies that expanded too quickly tend to run a truck for between three and five years. The truck will then be traded in before the vehicle’s warranty expires. After 500,000 miles, the costs of repairing a truck usually increases significantly.
As a result, trucking companies are trying to trade in vehicles after their fleets have become largely unused, following huge decreases in the prices of used trucks. Many American trucking firms have found themselves “upside down,” which means they owe more than their trucks are still worth.
Big Trucking Firms are Struggling
Big haulage carriers like Knight Transportation and Swift Transportation have said that the drop in prices for used trucks has seriously dented their business operations. Even as cargo volumes have started to increase again, big trucking firms are seeing the value of their truck fleets plummeting significantly. When the truck fleet is usually the biggest asset for trucking firms, this poses huge problems.
In the last two years, the average price for a Class 8 sleeper, a truck used for long-haul travel, has dropped by almost a quarter. J.D. Power Valuation services says that in March, the average value of this kind of vehicle was $49,000.
The surge in demand for new trucks was caused by companies that expanded their truck-leasing operations. One such example is the Celadon Group, an Indianapolis carrier that went from leasing 750 vehicles in 2013 to over 11,300 in 2016.
Ryder System, a commercial truck operation, reported that its first-quarter earnings fell by 32% from last year. Many big operations are struggling right now, but Corcoran Trucking, one of the most trusted Alaska trucking companies out there, is doing better than ever.
Count on Us for Reliable Alaska to Lower 48 Trucking
Corcoran Trucking has been providing one of the most reliable trucking services in the United States for half a century. Whether you’re looking for a one-time freight delivery, or a long-term operation, Corcoran Trucking has the fleet and the professionals you need to get the job done quickly.
For more information, don’t hesitate to call us on (800) 745-6065, or reach out via our online contact system. One of our friendly experts will be back in touch to discuss your needs!