Another blow was struck to the trucking industry to end 2019 and begin the new decade as another company that has been open since 1956 closed permanently, putting 240 drivers out of work. This holiday tragedy is now added to the list of trucking companies and truck driver woes as we drive further into a recession.
The company cites rising insurance premiums as the reason for needing to shut their doors. The decision came in mid-December as they went to renew their insurance, but found the cost would outweigh their profits. Without insurance, the company could not continue to send their drivers on runs; they specialized in oilfield transportation services, a popular service in Texas (and the niche cause of Texas trucking accident lawyer litigation).
In the first half of 2018, 175 trucking companies closed. In the same time period of 2019, over 600 companies closed. The numbers are still being compiled, but as of October, 4,200 payrolls had been cut and more companies faced financial ruin as the year came to a close. As such, many truck drivers are feeling the sting of the recession as they continue to look for work in fewer stable companies.
As time rolls on, more trucking companies may shutter their doors for good, putting long-time skilled drivers out of work. Some have already been turned off from the industry entirely because of these closures in the recession. As a result, newer, untrained drivers may enter the workforce and we may see a rise in Texas trucking accidents in the years to come. If you have any concerns about your career in the trucking industry, or if you’ve been involved in a trucking accident, call our offices today so that we can assist.