Eastern Railroad Discussion > WSJ: Truckers Cut Payrolls As Freight Demand Softens

From Wall Street Journal of 4/5/19:   https://www.wsj.com/articles/truckers-cut-payrolls-as-freight-demand-softens-11554485304?mod=trending_now_2

Introductory excerpt:

"...Carriers cut payrolls by 1,200 jobs last month, according to preliminary figures the Labor Department reported Friday, halting a nearly yearlong expansion amid signs a hot streak that boosted transportation companies’ profits in 2018 is cooling.Trucking company Covenant Transportation Group Inc. last month lowered its first-quarter profit forecast, citing weaker than expected freight volumes from late January through mid-March.“We attribute the softer demand to factors such as late 2018 inventory growth in advance of the perceived impact of tariffs, the effects of the partial government shutdown on spending and extended periods of inclement weather,” the company said in a statement..."

and

"...Sectors that feed goods into freight transport networks looked weaker, however. Factories cut 6,000 jobs, the first decline in the sector since July 2017, even though a separate report shows U.S. manufacturing activity expanding..."
 



Edited 1 time(s). Last edit at 04/07/19 02:14 by JPB.

That is not a company that is really relevant in today’s trucking industry. Walmart is still advertising $90,000 a year for drivers.

What is Covenant's role in the trucking industry? I see their trucks regularly in central Florida.

Posted from Android

Lackawanna484 Wrote:
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> What is Covenant's role in the trucking industry?
> I see their trucks regularly in central Florida.

Here is its website:

https://www.covenanttransport.com/

I found this statement:

"Today, more than 30 years later, Covenant operates one of the largest fleets in the country and leads the nation in expedited, team freight delivery".



Edited 1 time(s). Last edit at 04/07/19 18:46 by ts1457.

If they want to lay drivers off now, then they can scramble to find people later.